Why the European Securities Market is Not Fully Integrated
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.
I thank David Wright, Sean Berrigan, Daniela Russo and Mario Nava for their help and support over the years. All errors and opinions are my own responsibility. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Why the European Securities Market Is Not Fully Integrated, Alberto Giovannini. in Europe and the Euro, Alesina and Giavazzi. 2010