If one would keep on increasing the guarantee level, clients eventually become less alert and institutions might lower liquidity buffers. Both dangerous developments. It is therefore that I would like to stress today the fact that market participants have to recognize their own responsibilities too, and act more according to them. This applies to institutional managers, traders, fund managers, accountants, and even customers.
The result is that – regardless of the launch of a single securities settlement engine (T2S) and the single legal framework (CSDR) – the market has remained national, from the perspective of securities issuance. Debt instruments, even supranational ones, are issued nationally and issuers and investors often fail to reach each other across Europe.