well - known alternative is eurex clearing ’ s partnership program. 1 / 6 bis central bankers'speeches however, market concentration is still high. for example, about 85 % of euro - denominated otc interest rate swaps are cleared at lch ltd. in london. 2 in the face of market concentration and relatively slow - moving market practices, it is quite obvious that developing a complete supply chain in the eu may take some time. for regulators and the bundesbank as part of the eurosystem, financial stability remains our paramount concern in the discussion on ccps. we have to be vigilant with regard to concentration risks. apart from their systemic importance, resilient ccps also matter for the smooth functioning of payment systems and effective conduct of monetary policy. in its role as the central bank of issue for the euro, the eurosystem needs to effectively oversee euro - denominated clearing activities, no matter where they are established. so summing up, what we need is a balance between regulatory cooperation, further developing eu - based alternatives and preserving financial stability. striking this balance is essential for the eu to become a true and sustainable powerhouse in the global financial system. but even though resilient eu - based ccps can make an important contribution to this european powerhouse, they cannot shoulder this task on their own, of course. what we need on a wider scale is to forge an integrated capital market in the eu – a capital markets union. this continues to be the european commission ’ s policy objective. more integrated markets, based on common, proportionate and effective rules and regulations, would boost your business as market participants. they would also help to make our economic and monetary union more stable in the long term. what opportunities do integrated capital markets have to offer? so what i will do next is focus on the integration of the eu ’ s capital markets. the key questions are : first, what opportunities do integrated capital markets have to offer? and : second, how can the eu press ahead with market integration? the first question – about the opportunities offered by integrated, and thus deeper, capital markets – can be answered in a number of ways. allow me to touch upon three of them. the first, and most important, is : capital markets can boost growth potential. they channel savings to where the greatest benefits are expected : to the best ideas and firms. if we use the size of capital markets as a rough measure of how they power the economy

progress on the banking union also advances the capital markets union – not least because banks are major players in the capital market. their job is to act as a “ door opener ” for businesses. more capital market culture in old - age provision another area where europe could go further is in promoting a capital market culture for retail investors, particularly when it comes to old - age provision. 4 / 6 bis central bankers'speeches the euro area, for instance, has its own “ untapped ” funding source : savings surpluses of more than €300 billion a year. 5 these savings surpluses are driven in part by the greater need to provide for old age in times of demographic change and low interest rates. capital markets have the task of bringing together old - age provision and robust investment opportunities. sadly, though, the market for private old - age provision is still fragmented. different regimes at the national level are preventing the emergence of a pan - eu market for pension products. what is more, only a limited number of products are based on capital market instruments. this drives up costs for savers and restricts market liquidity. the newly established pan - european personal pension products ( pepps ) are designed to remedy this situation. in general, savings can impact more strongly on the economy if sound investment options are available across national borders. and to flank these efforts, we need to do more to promote financial literacy. savers need to become confident investors with a keen eye for opportunities and risks. conclusion ladies and gentlemen, let me conclude by summing up my main messages. with regard to european market integration, there are four points we need to bear in mind. first, integrated markets can tap into the growth potential of the financial sector and real economy more effectively ; second, market integration can help ensure greater financial independence ; third, market integration can enhance financial stability, particularly in the euro area. and fourth, we need progress in terms of market access for smes and capital market culture in old - age provision. with regard to brexit, strengthening our own market infrastructures – the lifelines of the eu capital market – will help europe become a powerhouse in the global financial system. striking a balance between regulatory cooperation, further developing eu - based alternatives and preserving financial stability is essential when it comes to ccps – which are one of the core topics of this conference. in closing, allow me to wish you all a pleasant and successful event! thank you for your attention. 1 bis quarterly review