Bulgarian Stock Exchange-Sofia · BSESOF:BSE
Bulgarian Stock Exchange-Sofia — Federation of European Securities Exchanges (FESE) — The prospects for capital markets in Southeast Europe - Towards Efficient Global Markets (September 2008)
15 slides from Bulgarian Stock Exchange-Sofia's conference presentation, Sep 16, 2008
Slide 1: The prospects for capital markets in Southeast Europe
The prospects for capital markets in Southeast Europe organised by Bulgarian Stock Exchange Towards Efficient Global Markets Sofia, 16 September 2008 Judith Hardt Secretary General Federation of European Securities Exchanges (FESE)
Slide 2: Content
Content • De-Regulation Trading at the trading level: the impact of MiFID on Europe’s trading landscape • De-Regulation Post-Trading: the European Code of Conduct on clearing and settlement of securities • What’s Next? New markets trends including the impact of IT, coming regulation and global conso
Slide 3: Improving Efficiency – Trading: MiFID Key Concepts
Improving Efficiency – Trading MiFID Key Concepts – Single passport for investment firms (including one set of conduct of business rules, capital adequacy rules, rules for reporting to clients, client order handling rules, and a new regime of best execution) – New client classification system – Mark
Slide 4: MiFID is delivering its promises
MiFID is delivering its promises • There is strong Competition in the market place which is reducing prices and overall costs • All players are improving their services or offering new services including new trade reporting venues, dark liquidity pools of liquidity and efficient order routing • Trad
Slide 5: MiFID also has some unexpected outcomes
MiFID also has some unexpected outcomes: • There are less internalisers than was generally expected • There is some confusion in trade reporting and post trade transparency may have suffered in a number of markets • An MTF is not a single breed; there are many different venues, offering different se
Slide 6: European equity landscape is changing..New venues
European equity landscape is changing..New venues Trading Platform Type Owner Baikal Dark Pool MTF LSE (and Lehman Brothers) BATS Europe Hybrid MTF BATS Equiduct Light Pool RM Borse Berlin Burgundy Light Pool MTF Nordic Banks Chi-x Light Pool MTF Nomura & others Direct Edge MTF ISE Exchange Investme
Slide 7: European equity landscape is changing … European Settlement
European equity landscape is changing … Trading (Major Regulated Markets and new venues) LSE NYSE BB SWX DB BME Nasdaq Chi-x BATS Turquoise Others BIT Euronext Equiduct OMX & Europe Clearing SIS Eurex CC&G LCH EMCF EuroCCP x-clear Citi Link Up Markets Settlement European NCSD VPSS CSDs SIS ISD EECSD
Slide 8: European equity landscape is changing … Settlement
European equity landscape is changing …(Major Regulated Markets) Trading LSE NYSE SWX DB BME Nasdaq BIT Euronext OMX Clearing SIS Eurex CC&G LCH x-clear Link Up Markets Settlement NCSD VP SS SIS ISD EE CSD M. Tit. Euroclear Clearstream Iberclear Sega LT CSD LV CSD Markets are evolving…
Slide 9: Improving Efficiency – Post-trading: The Code of Conduct
Improving Efficiency – Post-trading The Code of Conduct 2009 Access and Interoperability Guideline Defines the Principles and Conditions for Access and Interoperability in line with the Code. More than 80 access and interoperability requests to date.
Slide 10: Improving Efficiency – Post-trading: What has worked in the Code?
Improving Efficiency – Post-trading What has worked in the Code? On price transparency and unbundling: Positive Unilateral commitment results • On prices: transparency has improved + remains difficult (can we do more to standardise price information?) • On unbundling and accounting separation: good
Slide 11: So what's next?
So what’s next? Increased electronic trading (algo trading, direct market access, etc.) Breakdown of barriers between buy and sell side Increased competition between broker dealers and exchanges Blurring of lines between banks and infrastructures Evolution of the European Clearing and Sett
Slide 12: Europe in the global financial markets
Europe in the global financial markets The mergers of NYSE-Euronext, DBAG-ISE and NASDAQ-OMX will trigger global capital market integration The world of trading is becoming a truly global place Europe is an attractive financial centre with an increasingly global dimension…
Slide 13: Europe in the global financial markets
Europe in the global financial markets 60.0% 58% Europe US Others Asia - Pacific 55% 52% 50.0% 50% 49% 49% 45% 40.0% 32% 31% 31% 30% 30% 31% 30.0% 28% 21% 20.0% 16% 17% 17% 15% 12% 11% 10.0% 3% 3% 3% 2% 3% 3% 3% 0.0% 2001 2002 2003 2004 2005 2006 2007 Others Asia-Pacific Europe US * See FESE Statist
Slide 14: Benefits that greater integration would bring
Benefits that greater integration would bring are clear: • Price reductions • Increased investment opportunities for both EU and US investors • Increased access to capital markets for issuers on both sides of the Atlantic • Cross-fertilisation of market infrastructures
Slide 15: There are also some unknowns
There are also some unknowns • Regulators and supervisors are accountable nationally; will they be able to supervise and enforce at the global level? Will investor protection suffer? • What about fair market access? Do we need to agree on common safety standards? • How will the courts react? Could t