such changes include the mifid and the prospectus directive. in addition, existing lacunae in the eu framework have been addressed, for example with the market abuse directive, which has introduced a new eu regime for combating market manipulation. the commission and the committee of european securities regulators ( cesr ) are currently finalising the complex layout of level 2 measures and the european securities committee will be very busy over the coming months with the implementing measures of the mifid. as always, “ the devil is in the details ” and careful drafting is highly important. the ecb, which participates in the meetings of the european securities committee, will provide its technical input on those matters deemed within its interest. i have just mentioned that recent research has shown how important securities regulation and well - functioning legal systems are for the development of equity markets. 2 the basic idea is that well - functioning legal systems protect outside investors which in turn should improve firms ’ ability to raise external finance and to exploit growth opportunities. we should not forget here the importance of initiatives for improving corporate governance mechanisms and the protection of shareholders. this conference rightly does not only cover securities regulation as it will also host a corporate governance session tomorrow. following recent corporate scandal, a number of initiatives are on the way at the european and the international level. 3 of key importance is in my view the existence of a continuous dialogue among all regulatory authorities to promote a better mutual understanding and to reduce the risk of duplication of requirements. regulation, however, is not a panacea and action by regulators cannot suffice on its own. the correct behaviour of market participants is also crucial to the efficiency of the securities markets. institutional investors, auditors, analysts and rating agencies also play a key role in that they interpret disclosed information and assess the value of companies. in addition, they help solve the collective action problems of investors by researching and overcoming informational asymmetries. particularly in the eu context regulation should remove the barriers to cross - border services and ensure that nothing hinders the full implementation of the single market. prospects for the future we are at a particularly crucial stage in terms of the regulation of eu securities markets and more in general financial regulation. when approaching a crossroad, it is natural to feel slightly uneasy before it becomes clear which road to take. this is especially the case when the crossroad is badly lit and there are no signs to indicate the way. in this case, however, i think that the

janet yellen : strong foundations - the economic futures of kids and communities welcoming remarks by ms janet l yellen, chair of the board of governors of the federal reserve system, at the 10th biennial federal reserve system community development research conference " strong foundations : the economic futures of kids and communities ", washington dc, 23 march 2017. * * * i would like to welcome all of you and thank you for joining us to discuss a set of topics of considerable importance to our country. this is the federal reserve ’ s 10th biennial community development research conference, dedicated as always to issues of significance to people and communities around the country. the conference is cosponsored by, and includes substantive contributions from, the community development offices of all 12 federal reserve banks as well as the board of governors. that united effort and level of commitment reflects how consequential we consider these issues to be. this conference is intended to present and highlight rigorous research that i am confident will inform how you think about your own work, whether from the perspective of policymaking, community development practice, or research. our last conference, two years ago, explored various aspects of economic mobility, largely among adults. this year, we gather to discuss “ the economic futures of kids and communities, ” and, in part, i see this topic as an extension of that earlier conversation about mobility. today and tomorrow, we focus on research about the foundation or building blocks for economic success that are laid even before young people enter the workforce and assume responsibility for their own finances. we will hear from leading experts on a range of issues related to how children, youths, and young adults are shaped in ways that may ultimately affect their ability later to productively contribute to the economy and manage their finances. we can learn from what the data and analysis tell us, and our hope is that making use of this information will lead to more effective programs and policies and thus better outcomes. considerable evidence shows that growing up poor makes it harder to succeed as an adult, and new research by the fed likewise shows the strong connection between the typical experiences of poverty in childhood and economic challenges later as an adult. the data come from the board ’ s latest survey of household economics and decisionmaking ( shed ), which will be published later this spring. 1 in the most recent survey, we asked some of the younger respondents — aged 25 to 39 — to think about their childhoods. we asked those young adults whether, during their childhoods, they found themselves worrying