If the financial infrastructure does not function, payments and securities transactions cannot be made, which would bring the economy more or less to a halt. It would also prevent the Riksbank’s interest rate from exerting an impact on the economy. This means that the financial infrastructure and the ongoing changes in securities markets are relevant for the Riksbank’s two primary functions, namely to safeguard both financial stability and price stability. It is therefore important that we closely follow developments in these respects. Increased integration As many of you are already aware, major changes are currently in progress in the securities markets and the financial infrastructure. In recent years we have seen a number of tendencies whereby trading in financial instruments is becoming more integrated. Such tendencies have also been evident recently in clearing and settlement – the processing of securities transactions that follows the trade as such. 1 In a world conditioned by further globalisation, increased competition and advances in technology, companies use mergers and acquisitions to adjust. In the field of financial instruments, the creation of NASDAQ OMX Group in February 2008 has strengthened the links between Nordic, Baltic and American exchanges. The driving force behind this merger is primarily economic in that it confers considerable economies of scale. 1  Clearing involves balancing mutual claims and liabilities. Settlement involves the transfer of money and securities between transacting parties. BIS Review 153/2008  1  The changes in securities markets are also connected with regulations.
François Villeroy de Galhau: France – economic developments and reforms, where are we heading? Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at The Economic Club of New York, New York City, 18 April 2018. * * * Accompanying slides of this speech. Ladies and Gentlemen, I am very pleased and honoured to give this speech to the Economic Club of New York. The theme of my speech is “economic developments and reforms in France”. One year ago, you would probably not have suggested it. This shift tells something: France is currently going through exciting times and deserves a close scrutiny. [slide 1]. Before addressing the subtitle of my speech “where are we heading?” I would like to ask “Where are we starting from?” As about everywhere among the advanced economies, France experienced a decline in its potential growth from 2% in the 1990s to about 1.3% currently. Potential growth could be higher, as in several other advanced countries. An increase would indeed be necessary to face the headwinds of high public debt, ageing and environmental transition, while safeguarding the European social model. If funded, this European social model is a long term economic asset, while bringing more education and more cohesion [slide 2]. There are two other more specific challenges for France. The first one is a persistently high unemployment, which never fell below 7% since 1983. The second one is high public expenditures, the highest among EU countries in 2016 (as a share of GDP).