to actually build a functioning machine based on it. thirty years on, while we 1 / 3 bis - central bankers'speeches still lack a fully functional and reliable quantum computer, we seem to be actually getting closer and closer. as the cybersecurity threat is serious but there are potential ways to fend it off, we cannot afford to wait. implementing quantum - resistant cryptography tools before quantum computers become practically operational is crucial for data longevity. sensitive data that are encrypted using today's technology could be stored now by malicious agents and decrypted later, once quantum tools become available ; upgrading cryptographic tools as soon as possible is therefore necessary to ensure long - term data security. this is especially relevant for financial institutions. their core business is ultimately based on the ability to create, manage and use sensitive data, and it is not unlikely that the quantum revolution will hit the financial sector faster and more intensively than other industries. awareness of the need to act is growing. in the spring of this year, the european commission published a'recommendation on a coordinated implementation roadmap for the transition to post - quantum cryptography '. in the us, the national institute of standards and technology ( nist ) officially released its first set of finalised post - quantum cryptography ( pqc ) algorithms last month. this is a major step forward. in the g7 finance track, the italian presidency identified quantum computing as one of the key strategic cyber issues facing us. it may affect multiple policy areas, including national security, competitiveness, ethics, and skill development. while solutions to achieve quantum security are starting to become available, there are factors that can make market players reluctant to adopt them quickly. these include uncertainty about the actual urgency of the quantum threat, the fact that a common transition approach has not yet emerged, and the fragmentation of investments, responsibilities and regulatory frameworks across jurisdictions. the g7 has launched several technical initiatives to foster coordination among the main stakeholders. with today's workshop, we aim to engage key experts in g7 countries, with a view to developing a shared understanding of the most urgent issues, a potential roadmap to address the transition to quantum resilience and, to the extent possible, an agreed policy agenda. we are fortunate today to have speakers and attendants from a wide range of backgrounds : academia, government institutions ( including lawenforcement agencies ), central banks, international organisations and the finance industry. this promises to be

antonio fazio : regulation and supervision in financial markets presentation by antonio fazio, governor of the bank of italy, at the frankfurt european banking congress 2004, panel discussion on “ regulation and supervision in financial markets ”, frankfurt, 19 november 2004. * 1. * * development and integration of financial markets in the euro area the introduction of the single currency has given a decisive impetus to financial integration in europe. the integration of the money market has been rendered possible by the creation of target, the european payment system. the launch of the new - generation system based on a single platform is scheduled for 2007. the euro has had a particularly significant impact on the european market for private - sector bonds ; there has been a considerable increase in the number of even medium - sized firms placing issues outside their home country. the home - bias of equity portfolios has diminished. in the main industrialized countries the medium - term growth in the quantity of money, and hence in the volume of bank deposits, is in line with that in nominal gdp. the faster rate of expansion in the aggregate volume of financial assets, that is the process of financial deepening, is the outcome of the direct relationship established on the financial markets between the firms and the public sector issuing securities, on the one hand, and the investors purchasing them, on the other. in italy, between 1995 and 2003 the volume of funds raised directly on the financial markets by firms issuing shares, bonds and other instruments grew from 20 billion euros to 65 billion. the amount of households ’ financial wealth consisting of corporate securities increased from 180 billion euros to 470 billion, that is from 19 to 36 per cent of gdp. similar developments have taken place on other markets. the stability of the banking system, the protection of the savings it intermediates and their efficient allocation are entrusted to the banking supervisory authority, as well as to market discipline. in order to strengthen, in this new context, the safeguards for savings invested in securities, steps must be taken to ensure more effective controls on financial markets and firms issuing securities, if necessary by forging europe - wide links. 2. banks and financial markets during the 1990s the large - scale process of consolidation and consequent growth in the size of banks encouraged the spread of the universal bank, which combines retail and wholesale business and simultaneously performs both commercial and investment banking services. the banks themselves have greatly stepped up their role in the distribution of third - party financial products, insurance policies, investment funds and corporate bonds. credit risks