denis beau : what policy framework to help building innovation and growth into europe ’ s capital market? speech by mr denis beau, first deputy governor of the bank of france, at the afme ( the association for financial markets in europe ) annual capital markets technology and innovation conference, paris, 21 november 2019. * * * ladies and gentlemen, the past decades have clearly shown how innovation – in particular technological innovation – have brought new services, reduced barriers and contributed globally to progress and economic growth. however, innovation does not necessarily implies growth for everyone, everywhere. innovation can weaken some actors, create imbalances and its long - term benefits for society may be, in some cases, uncertain. in addition, i would say that speaking solely about growth is not enough today, in the context in particular of climate change and lowering social mobility. growth should be sustainable, inclusive and compatible with a necessary level of resilience. here central bankers and supervisors, in charge of financial stability, have a contribution to make. but what does that mean in the european context for the innovation and growth of our capital markets? my perspective on this rather complex issue is simple : we have to identify clearly the challenges raised by innovation and be ready to adapt our policy framework if we want that innovation goes with sustainable, inclusive and resilient growth of the european financial market. to support my point, i would like first to explain how we at the banque de france and the acpr approach this twofold issue ( identify the challenges and adapt when necessary our policy framework ) ( 1 ). i will then illustrate our approach by addressing the case of financial market infrastructures ( 2 ). 1. identify the challenges and be ready to change our policy framework technological innovation has the power to create new services for consumers but also to reshape financial market structures. i will not elaborate on a phenomenon that everybody can see developing in the financial sector. the whole value chain is being impacted by fintechs as well as by bigtechs, which are introducing almost every day new ways to pay, to provide credit, to get insurance and, of course, to invest within capital markets. by doing so, they are also modifying the financial ecosystem that we supervise and may contribute to an increase or a shift of risks in the financial system. data and consumer protection issues raised by new technologies, anti - money laundering challenges posed by new usages, operational risks specific to third party providers and cloud outsourcing, including cyber - risks

an ideal opportunity to exchange views, in that it brings together a set of distinguished experts with considerably diverse experience. i encourage all participants to be active, ask questions and share their insights. ladies and gentlemen, we are also honoured to have professor juan ignacio cirac sasturain with us today as a keynote speaker. as many of you will know, our speaker is one of the leading theorists in quantum computation. his contributions range from the physics of quantum computers to quantum algorithms and quantum information theory. many here will be especially interested in his seminal work on quantum cryptography. professor cirac is the director of the theory department at the max planck institute of quantum optics in garching bei ma¼nchen, bavaria, and collaborates with many other academic institutions. he has received an impressive number of high - level awards, including the prince of asturias award for technical and scientific research ( 2006 ), the 2 / 3 bis - central bankers'speeches bbva frontiers of knowledge award ( 2008 ), the benjamin franklin medal ( 2010 ), the wolf prize in physics ( 2013 ), the max planck medal ( 2018 ), and many others ; more are sure to come. the subject of his talk is, very aptly,'opportunities and challenges of the next generation's computers '. we are certain that his remarks on today's central issue will set the stage for a very productive seminar. please join me in welcoming ignacio cirac to the stage. 3 / 3 bis - central bankers'speeches