However, one interesting question is what effect the change in population structure will have on savings and on the securities markets in a few years time, when those of us born in the 1940s retire. We are a fairly large group from the baby boom years. The life cycle hypothesis assumes that we will sell large parts of our assets, which will lead to negative net savings. However, some studies indicate that pensioners may not consume their capital to the extent assumed. And of course, some people actually have something left to pass on to their descendants. One decisive factor for the future development of savings is how the pension system will function in practice and what responsibility the individual will have in the future for other parts of the traditional welfare system. Technological developments Another important driving force behind the securities markets is technological developments. These occur in several ways. Look, for example, at the current procedure for a securities transaction, from start to finish. The process from placing the order to buy or sell until the transaction is finally settled has become increasingly automated. I don’t just mean the actual trading, which has become increasingly electronic, but also the processes following on from this, namely clearing and settlement. Straight through processing, usually referred to as STP, is becoming more common. This involves the entire chain from placing the order to clearing and settlement being implemented without manual intervention. The increased automation has led to transaction costs falling.
Thomas Jordan: The Swiss economy in a weakened world Summary of a speech by Mr Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank, at the General Meeting of the Federation of the Swiss Watch Industry, Lausanne, 25 June 2015. The complete speech can be found in French and German on the Swiss National Bank’s website (www.snb.ch). *  *  *  Since summer 2007, the global economy has been in a state of near-permanent crisis. What began as a subprime crisis triggered the banking and financial crisis, leading to a deep recession. This culminated in the European debt crisis. The current strength of the Swiss franc is a reflection of this global crisis, and highlights the franc's status as a safe haven, which is especially pronounced in times of high global uncertainty. The Swiss National Bank (SNB) has responded to the appreciation pressure by taking exceptional measures. In terms of Switzerland's economic activity and the SNB's balance sheet, no other country has seen its monetary policy so highly exposed. The decision to discontinue the minimum exchange rate was prompted by renewed changes in international conditions, particularly the growing divergence between the monetary policy stances of the world's main currency blocks. Had the SNB delayed its decision, it would have lost control of monetary policy and would have had to discontinue the minimum exchange rate at a later date under much less favourable conditions.