Those parts of the financial markets that are crucial for the transmission of the Eurosystem’s monetary policy are already working to our satisfaction. However, some segments of the financial markets still have a long way to go until they can be regarded as fully integrated. Securitised money markets and stock markets are among them.
Differences in legal frameworks as well as in clearing and settlement systems are the usual suspects and, indeed, these are the major actors in the impediment play. The process of translating European legislation into national law, making securities market laws compatible among the members of the European Union, is currently progressing in slow motion. Fortunately, progress towards integrated securities markets is in the offing.