achieving a stable financial system the role of financial
TRANSCRIPT
Achieving A Stable Financial System
– The Role Of Financial Centers
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Three Major Challenges
Stability Reputation & Public Debate
Regulation & Supervision
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How to Cope?
• Reduce the leverages, downsize balance sheets,
• Proof the service for the real economy
• Avoid re-nationalization
• Build resilient IT and trading systems to avoid flash crashs and enhance
market integrity
• Transparent products
• Proof the value of the advice in retail markets
• Establish a continuous dialogue with all sectors of society
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Financial Centers: Supporting The Financial
Industry In Responding To Challenges
1. Financial centers are the hinge between real economy and financial
industry and have to provide reliable platforms for capital supply
2. Financial centers are the interfaces between central banks and the other
players – liquidity, as the basis of other transactions, is created here
3. Financial Centers have to be facilitators of a broad debate about solutions
to current challenges
4. Financial centers have to pave the way for excellent education of finance
professionals
5. Financial Centers are also the technological crystallization point of
transactions and have to create a maximum of market integrity
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1. Capital Supply For The Real Economy:
Stocks Listed In Frankfurt Are More Liquid
After market: Highest liquidity for investors in Europe
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
Prime Standard
Main Market
Entry Standard
AIM
Trading Volume (TVO) € T
0%
5%
10%
15%
20%
25%
30%
35%
Prime Standard
Main Market
Entry Standard
AIM
Zero Trade Ratio (ZTR)
0,000
0,010
0,020
0,030
0,040
0,050
0,060
0,070
Prime Standard
Main Market
Entry Standard
AIM
Relative Spread (RS)
0%
1%
2%
3%
4%
5%
6%
7%
Prime Standard
Main Market
Entry Standard
AIM
Trading Volume (TVO) / Market Value (MV)
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2. Financial Center As An Interface To Central Banks:
Frankfurt Is Home Of Monetary Stability
Since the foundation of the European Central Bank in 1998, Frankfurt
has become the centre of monetary policy decisions for the euro
currency zone. In just a short space of time, the euro has joined the US
dollar in becoming one of the world's most important currencies.
2000 2011
Share of currencies in official holdings of foreign exchange
€
18%
$
62%
Others 13% Others 11%
$
71% €
25%
Source: Annual Report of the IMF
Appendix I, International Reserves
Recent Issue: April 2012
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3. Facilitating A Broad Debate:
The Frankfurt Finance Summit
Dr. Jens Weidmann Luc Frieden Diana Farrell Claudio Borio Prof. Dr.
Beatrice Weder di Mauro
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3. Facilitating A Broad Debate:
The Yearbooks of Frankfurt Main Finance
Frankfurt Main Finance devotes its yearbooks to current topics. While the first one in
2009 deals with the financial crises, the second one goes a step further and shows the
ways for a new financial setting. The yearbook 2011 deals with the essential
infrastructure for a modern financial centre.
2009 2010 2011
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3. Facilitating A Broad Debate:
The Yearbook 2012
Topic:
The yearbook 2012 examines the history and current
challenges facing the single European currency.
Authors amongst others are:
• Dr. Theodor Waigel (German Finance Minister, 1989-1998)
• Prof. Dr. Dr. h.c. mult. Otmar Issing (Center for Financial Studies)
• Yakov Amihud (Stern School of Business, New York University)
• Prof. Dr. Helmut Siekmann (Institute for Monetary and Financial Stability)
• Jens Ulbrich (Deutsche Bundesbank)
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4. Paving The Way for Excellent Education:
FIRM Educates Top Executives In Risk Management
• Development of a master program in Risk Management & Regulation
• Bi-annual start of new master students
• Practical-orientated education
• Supporting the certificate programs of the Goethe Business School, DVFA and Frankfurt School of Finance & Management
• Education of coming top executives and decision makers in risk management and regulation
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4. Paving The Way for Excellent Education:
SAFE Research Center At Goethe University
• “Sustainable architecture for finance in Europe” (SAFE) – new research center established in 2012
• 30 professors and 20 young research fellows from several disciplines:
• Economics
• Maths
• Law
• Sociology
• Comprehensive promotion by the government of the state of Hesse
• Researchers developing solutions for a resilient finance architecture
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5. Ensuring Market Integrity:
Deutsche Börse Recognized As Quality Leader
• Recognition as a truly global and the only fully
integrated exchange network
• One of the World's largest stock exchange
organization with market capitalization of EUR 23
billion
• Pioneer in electronic trading – Xetra offers
connectivity to about 300,000 securities and one-
stop shopping in Europe’s biggest liquidity pool
• EUREX: One of the world’s leading derivatives
exchanges and the quality leader for clearing
solutions
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Frankfurt welcomes you
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Frankfurt Main Finance e.V.
MAIN TRIANGEL
Zum Laurenburger Hof 76
60594 Frankfurt am Main
www.frankfurt-main-finance.com
Hubertus Väth (Managing Director)
Phone: +49 (0) 69 94 41 80 80
Fax: +49 (0) 69 94 41 80 19
Email: [email protected]
Josef Schießl (Managing Director)
Phone: +49 (0) 69 94 41 80 61
Fax: +49 (0) 69 94 41 80 19
Email: [email protected]
Contacts