Brexit poses threat to CMU success, says Clearstream
16 March 2017 Frankfurt
Image: Shutterstock
Strained political relations in the EU has put the harmonisation efforts of Europe鈥檚 financial markets, such as the European Central Bank鈥檚 Target2-Securities (T2S) settlement platform, under 鈥渟evere stress鈥�, according to Clearstream.
鈥淚n order to fully harness the potential and wider benefits of such developments, we need to clear away some serious obstacles on the path to a capital markets union in Europe,鈥� said Marc Robert-Nicoud, CEO of Clearstream, which migrated to T2S in February.
鈥淔urther alignment will be necessary of the various European regulatory initiatives with the objectives of market integration initiatives such as T2S.鈥�
In a note to clients, the Deutsche B枚rse subsidiary said: 鈥淣ationalistic tendencies as well as the looming Brexit are subjecting the capital markets union project to severe stress.鈥�
鈥淎gainst the current political backdrop, it is key for policy makers and stakeholders to focus on the execution of capital markets union objectives.鈥�
Despite this, T2S, which is currently heading towards its final wave of implementation later this year, 鈥渨orks perfectly鈥�, but it鈥檚 yet to achieve its ultimate goal.
Robert-Nicoud added: 鈥淭he technical integration of the European settlement systems can only be a first step.鈥�
鈥淣ow, the integration on market level has to follow lead. This is the only way how T2S can live up to its original promise: to make cross-border settlement easier and more efficient for market participants.鈥�
Clearstream鈥檚 successfully migration to T2S, means the platform now has more than 80 percent of its expected volume.
The T2S project is scheduled to be completed with a final wave in September 2017.
鈥淚n order to fully harness the potential and wider benefits of such developments, we need to clear away some serious obstacles on the path to a capital markets union in Europe,鈥� said Marc Robert-Nicoud, CEO of Clearstream, which migrated to T2S in February.
鈥淔urther alignment will be necessary of the various European regulatory initiatives with the objectives of market integration initiatives such as T2S.鈥�
In a note to clients, the Deutsche B枚rse subsidiary said: 鈥淣ationalistic tendencies as well as the looming Brexit are subjecting the capital markets union project to severe stress.鈥�
鈥淎gainst the current political backdrop, it is key for policy makers and stakeholders to focus on the execution of capital markets union objectives.鈥�
Despite this, T2S, which is currently heading towards its final wave of implementation later this year, 鈥渨orks perfectly鈥�, but it鈥檚 yet to achieve its ultimate goal.
Robert-Nicoud added: 鈥淭he technical integration of the European settlement systems can only be a first step.鈥�
鈥淣ow, the integration on market level has to follow lead. This is the only way how T2S can live up to its original promise: to make cross-border settlement easier and more efficient for market participants.鈥�
Clearstream鈥檚 successfully migration to T2S, means the platform now has more than 80 percent of its expected volume.
The T2S project is scheduled to be completed with a final wave in September 2017.
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