BIS Review 19/2006  3  A problem in the securities markets is their current lack of depth and integration. An important challenge is the fragmentation of clearing and settlement systems. It is an important factor behind the high price of securities transactions in Europe. This applies particularly to trade in equities.
Identifying pre-arrears situations and engaging with them, as with early arrears cases, can be very cost effective in arresting this spiral in the level of indebtedness. Quantifying the consequences of evolving policy in this area is the subject of much research. If more investment properties are repossessed, or surrendered voluntarily to lenders, will this improve or hinder the functioning of the property market?