Overall, we can conclude that the process of financial market integration that is underway, while not yet complete, is conducive to the smooth transmission of monetary policy across the euro area. Nevertheless, greater financial market integration could eliminate some of the remaining differences and therefore facilitate further the transmission of the single monetary policy within the euro area.
Finally, they are encouraging the development of wellregulated and prudently managed central counterparty clearing arrangements for CDS trades. 2  Bank-affiliated primary dealers are already subject to mandatory consolidated supervision, but the focus of that supervision has been on limiting risks to the banks and other insured depository institutions within the holding company.