Euroclear's white paper examines the shifting dynamics of the European CSDs sector and post-trade architecture. It addresses ongoing market fragmentation, proposing strategies to enhance efficiency and foster deeper market integration, ultimately guiding the sector towards a more unified and efficient financial system. #Euroclear #CSD #posttrade
Euroclear has published a white paper reflecting on the state of the European #CSD sector and #posttrade architecture and the path towards further market development and integration. Following the recent European reports that have put a spotlight on the sector, this paper aims to contribute to discussions on how to advance efficiency and tackle areas that continue to be affected by fragmentation. I would highlight three broad themes: -Understanding the post-trade sector in all its dimensions: this means going beyond the number of CSDs to consider other elements that influence market realities. It is also about reflecting on the underlying causes of fragmentation, which make it difficult for FMIs to consolidate structures. -Recognising Europe’s strengths, areas of progress and where further work is needed: the fragmentation challenge is more pronounced in equities; fixed income markets have a more advanced level of integration and efficiency. While FMI consolidation should be supported, other integration models can also play a role. For example, the Eurobond market is a European success story and a good case study of asset class integration. -Establishing policy priorities: we discuss the conditions for greater competition between CSDs and market-driven integration. They include promoting further regulatory convergence and market standardisation. We also refer to the opportunities offered by technology, particularly DLT/digital assets. We hope this contribution will provide food for thought on how to move forward on these issues, building on the current political momentum. We look forward to debating these perspectives with all stakeholders in the months ahead. https://lnkd.in/ePR6x_K6