Why the European Securities Market is Not Fully Integrated

Alberto Giovannini

NBER Working Paper No. 14476
Issued in November 2008
NBER Program(s):   IFM

I describe the challenge of fully integrating securities markets in Europe by integrating the clearing and settlement functionalities. The initial condition is characterized by a multitude of standards, conventions, regulation and laws, which are inconsistent with a barrier-free post-trading environment. In addition, the current providers of post-trading services are mostly for-profit monopolies. The EU reform strategy is discussed in detail, and its performance so far is assessed. I argue that the special features of the post-trading industry may help understand the disappointing progress so far.

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Acknowledgments

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