yves mersch : post - trade harmonisation and financial market integration in europe closing remarks by mr yves mersch, member of the executive board of the european central bank, at the conference “ post - trade harmonisation and the integration of financial markets : a joint effort ”, organised by the european central bank and the european commission, frankfurt am main, 19 march 2013. * * * ladies and gentlemen, we have come to the end of today ’ s very intense programme. i now have the pleasure of sharing with you some thoughts on the main messages that have emerged in the course of today. financial integration remains at the core of the european agenda. for the future of europe, it is important that the single market project is taken forward with the full determination of all of us, even in times of difficulty. as president mario draghi remarked this morning, “ in times of severe economic challenges, it is particularly important that our commitment to achieve a truly single european market is reaffirmed ”. from the eurosystem ’ s perspective, financial integration is of great importance. first, it is vital for the single monetary policy of the euro area : monetary policy is implemented through the financial system, which has to be as efficient as possible in order to guarantee a smooth and effective transmission of monetary policy impulses. a highly integrated financial system ensures that impulses diffuse homogeneously across the whole euro area. second, financial integration has implications for the stability of markets. integration results in increasing interconnections and cross - border activity. a higher level of integration will therefore be beneficial for our economy, enabling investors to find profitable investment opportunities whenever and wherever they arise. it will also enhance competition among financial intermediaries and among financial infrastructures and, as a consequence, reduce the costs of intermediation. however, highly interconnected systems could also be more prone to systemic risks. to avoid those risks, integration initiatives are being undertaken which place a very strong emphasis on the safety and resilience of financial markets and infrastructures. let me now turn to post - trade harmonisation, the central theme of this conference. the harmonisation of market practices, rules and standards in post - trading is a necessary component of financial integration. inefficiencies and barriers in clearing and settlement make market access difficult for investors and for issuers. the european securities market cannot be said to be fully integrated if post - trade arrangements are not harmonised, ensuring safety, full competition and the absence of barriers across

in europe. let me stress once more that the cause to which this process is contributing – the single market – is one of making europe stronger bis central bankers ’ speeches and more attractive for national as well as cross - border investment, thus activating and sustaining growth. to conclude, i wish to thank you all very much for your participation. particular thanks go to all speakers and panellists for making the discussions so lively and thought - provoking. finally, i would like to take this opportunity to thank all those, from both the european commission and the ecb, involved in preparing this very interesting conference. bis central bankers ’ speeches