In the sole Europe-focused session at Sibos in Frankfurt, Swift’s Marianne Demarchi facilitated a discussion titled, “View from the Top: Securing Europe’s Financial Future – Resilience, Autonomy, and Global Impact.”
The panel featured insights from Andrew Bester (ING), Piero Cipollone (European Central Bank), Stephanie Eckermann (Deutsche Börse), Bettina Orlopp (Commerzbank), and Valérie Urbain (Euroclear). Cipollone noted the paradox of Europe having significant savings and credit exports alongside a pressing need for investment.
He emphasized the need to deepen the single market and develop capital markets to enhance strategic resilience amid fragmentation. Bester highlighted that uncertainty necessitates centralised liquidity and visibility, while Orlopp indicated that different company sizes face varying challenges—SMEs prioritize liquidity and risk management, whereas larger corporations focus on investment strategies.
Eckermann identified three critical priorities for Europe’s capital market infrastructure:
1. Simplify and standardize underlying regimes to strengthen the liquidity pool and enhance the single market.
2. “Better utilize empty highways”: T2S, a pan-European settlement system, requires better pricing mechanisms to increase participation.
3. Maintain momentum in digital advancements, as Europe initially led in digital securities regulation but is losing ground.
On the digitization front, Eckermann expressed commitment from Euroclear and Deutsche Börse to standardize the Euro bond market, which is pivotal for enhancing Europe’s competitiveness.
Bester stressed the need for simplification and quicker decision-making in capital market integration, while Orlopp mentioned securitisation, and Eckermann pointed to the necessity of developing capital market-based pension schemes. Urbain noted the importance of creating investor profiles for varying risk appetites, and Cipollone concluded that fundamental issues must be addressed for true market integration, despite prevailing confidence due to urgency and political collaboration.
The discussion then shifted to financing priorities in green and digital transitions. Bester underscored the banking sector’s strength and the essential public-private partnerships for fostering innovation. Orlopp recognized that while European banks are well-positioned, there is a gap in supporting venture capital for larger innovations; ensuring Europe remains attractive from a regulatory standpoint is crucial.
Urbain explained how new technologies like blockchain and tokenization can enhance efficiency, thus attracting investors, especially younger ones—key stakeholders for the future. She stressed the need for scalable solutions beneficial across the investment chain, alongside maintaining markets attractive to international investors.
Cipollone discussed the ECB’s approach to developing a digital asset market through its Ponto and Appia initiatives. Ponto, launching next year, will enable trading on Distributed Ledger Technology (DLT) using central bank money. Appia aims to explore the structure of digital financial systems, addressing fundamental questions about interoperability and capital market union opportunities.
Demarchi concluded the session by asking panellists for one bold step to enhance Europe’s financial future within the next year:
– Cipollone: “Legislation on the digital Euro.”
– Bester: “Capital market union.”
– Eckermann: “Immediate action on digitization.”
– Orlopp: “Pension reform.”
– Urbain: “Take pride in European champions.”