In the wake of the global financial crisis 2008-2009, the NordicBaltic Macroprudential Forum, NBMF, was created in 2011, at the initiative of the Riksbank. This forum has been successful and has reinforced cooperation on macroprudential policy in the region, which has ultimately also strengthened financial stability in both Sweden and the region as a whole. And my assessment is that the integration of the financial markets in the region has made a strong contribution to this success. The Swedish financial market has so far not been as integrated with the rest of Europe as with the Nordic-Baltic region. But this could change. Since the euro was introduced, the financial markets within the euro area in particular have become increasingly integrated, but there has also been greater integration in global terms. The focus in recent years has been on developing and deepening the market for financial services in the EU and speeding up the integration of the member states’ capital markets. 30 I think that this rapid integration of the financial markets in Europe points towards a Swedish membership of the Banking Union. But there are also other factors that speak in favour of membership. One important factor is the risk that we will have less influence in the decision-making processes if we remain on the outside. Developments within the EU have led to an attempt to harmonise the regulatory framework governing the financial markets. This involves capital adequacy requirements and management of banking crises.

Swiss Interbank Clearing, for example, has admitted participants from abroad since the late 1990s. Second, the consolidation of infrastructures is in full swing, especially in Europe. In some cases, consolidation takes place through mergers between formerly independent systems. For example, Euroclear group integrated the formerly independent central securities depositories of the Netherlands, Belgium, France and the UK. In other instances, consolidation takes a less direct form. National infrastructures may, for example, set up mutual links to facilitate trade, i.e. the settlement of cross-border transactions. The internationalisation of stock markets has also made it possible to trade an increasing number of stocks on several different trading platforms. And finally, we have also witnessed the emergence of a few completely new infrastructures which have adopted an international – and in some cases even global – focus from the outset. A classic example is the Continuous Linked Settlement (CLS) system, which was designed for the settlement of foreign exchange transactions and started operations just over four years ago. It now settles transactions in as many as 15 currencies. But how has the opening up of trading centres and settlement channels, which traditionally had a domestic focus, impacted on financial stability? On the one hand, it is obvious that the adjustment of the financial market infrastructures to the special features of global financial markets may contribute to reducing risks related to the settlement of cross-border transactions. For example, the risk associated with traditional foreign exchange transaction settlements (Herstatt risk) can be largely eliminated through CLS.