indicator of the progress already made in the integration of euro area stock markets. the euro area capital market is larger and more open than any of the domestic markets and provides investors with more varied opportunities for investment, but it is not yet fully integrated. there are still some barriers : for example different traditions and local market practices, national regulations and tax regimes. one major obstacle to the efficient functioning of financial markets is also the prevailing segmentation of financial markets in europe. so, while the introduction of the single currency was a major step towards integration, the high degree of segmentation in europe ’ s securities markets remains one of the primary reasons for structural weaknesses. allow me to illustrate this by providing an example : there are currently more than 20 different securities settlement systems in the euro area operating on different trading and clearing platforms. in other words, the euro area lacks a sufficiently integrated system for the clearing and settlement of securities and for managing collateral at the cross - border level. but market pressure is growing and the securities settlement systems are faced with increasing demands for consolidation. … the euro, in tandem with technological progress and continuing globalization, has put more pressure on european exchanges to strive for structural improvements. we should also be aware that the process of consolidation of stock exchanges is taking place within the context of the integration of capital markets in the euro area. this allows exchanges to benefit from increased economies of scope and scale they may obtain by using new information and telecommunication technologies. since the introduction of the euro several initiatives have been launched by stock exchanges with a view to forming alliances or merging activities. the recent flurry of excitement about the future of the london stock exchange gives an indication of just how important the push to consolidate europe ’ s stock exchanges has become. the increase in m & a activity is a sign of the competition between business and financial locations due to changing market conditions and the increasing competitive pressures to which the different financial intermediaries are exposed. further efforts must be undertaken to remove the remaining segmentation and harmonize market architectures, accounting rules and tax treatment. several initiatives are already under way and progress is being made on the harmonization of market practices ; here, eg the “ financial market action plan ” of the european commission comes to mind, and national governments and european market organizations have been working towards these goals. an important recent initiative was the decision of the ecofin - council to establish a committee of wise men in order to identify the obstacles which stand in the way of a single market in securities and consider

our unwavering mandate, which is to ensure price stability. i therefore expect that in the course of today's event, we will be able to share our experience, discuss current issues, and form important practical conclusions that will help us achieve our goals. i wish everyone a peaceful sky over your heads, a meaningful discussion, and informative conclusions. 3 / 3 bis - central bankers'speeches