Functional harmonisation refers to the agreement over a set of business rules that allow business to be done across markets, such as market opening times or the set of information to be exchanged when a transaction is processed. Technical harmonisation refers to the detailed set of standards to be adopted when carrying out a process, e.g. messaging formats.
Each of these three harmonisation layers requires coordinated efforts among a different set of entities. The ECB, in its catalyst role, will promote innovation by involving all relevant stakeholders and thereby foster change which underpins the safety and efficiency of financial markets.