英文_奥纬咨询_流动性矩阵——欧洲碎片化的再平衡_24页_1mb

Summary of "The Liquidity Matrix" Report

The report "The Liquidity Matrix" examines the fragmentation in European equity markets and its impact on financing needs and competitiveness. Europe requires up to €800 billion annually in investment for transitions like green initiatives and AI, which cannot be fully met by public or bank lending alone. Capital markets are essential but underdeveloped due to fragmentation.

Key Findings:

• European liquidity is significantly lower than in the US, with fragmentation split into intra-market (splitting liquidity across venues) and cross-market (geographical obstacles). Intra-market fragmentation is more severe, accounting for 70% of trading volumes.
• Retail investors in Europe hold only 17% of wealth in financial securities, compared to 43% in the US, indicating a demand-side gap. Boosting this could increase liquidity.
• Supply-side issues include fragmented execution venues like lit markets, multilateral trading facilities, systematic internalizers, and OTC channels, reducing price formation and access.
• US equity markets are simpler with less fragmentation, aiding efficient capital raising.

Recommendations and Integration Pathways:

• Demand-Side Actions: Increase retail participation through incentives like savings schemes, pension reforms, and better financial education. Simplify taxes and align regulatory burdens.
• Supply-Side Reforms: Harmonize regulations across markets, adopt standards like Target-2-Securities for settlement, and simplify issuance processes.
• Integration Pathways:
  • Pathway B (Harmonize regulations and standards): Most practical for addressing intra-market fragmentation.
  • Other pathways involve venue consolidation or enhanced connectivity, but these are costlier and may disrupt innovation.
• Vision for the Future: Europe must rebalance between liquidity, innovation, and competition to deepen markets, enhance price formation, and attract more investment, aligning with the Savings and Investment Union strategy.

Conclusion:
Addressing fragmentation through a balanced approach of demand and supply-side measures, along with regulatory harmonization, is critical to improve Europe's capital markets and meet financing needs.