www.deutsche-boerse.com/up-to-date A European Capital Markets Union is good for everyone We support a common European single market The liberal principles of the European Union have Republic of Germany and the Netherlands, has been securing our prosperity and our peace for many more than trebled since 1957. years. It is therefore in the interests of all people in Europe to safeguard and build on the many personal benefits the EU has to offer. Thanks to the common Single Market... 3.6 million new jobs have been created since 1990, of which around 936,000 in Germany. every employee enjoys at least four weeks’ annual leave and a maximum working week of 48 hours. every EU citizen can work where he or she wants since university degrees and apprenticeship diplomas are generally speaking mutually recognised. roads are rehabilitated, fast internet access is provided and new daycare centres are built in all We want to safeguard and build on all these EU member states. advantages. To achieve this – particularly in the rigorous climate and environmental protection light of Brexit – the European Union must remain standards have been enshrined in all 28 member strong and competitive in the future. states. there is greater equality of opportunity, e.g. thanks to the ERASMUS programme. The European Commission is pushing for a Capital you can use one currency to pay in 19 EU Markets Union member states. holidays and the use of mobile phones within The Capital Markets Union is one of the most Europe are less expensive. important initiatives put forward by the European you can travel throughout Europe without having Commission. Its main aim is to stimulate economic to show your passport. growth within the EU and to create jobs on the real per capita GDP of the six founder countries basis of stable and liquid capital markets. But there of the single market, including the Federal are also many other reasons in favour of such a union. It could prove a very effective solution for A European Capital Markets Union is good for everyone 2 many of the challenges we are currently facing in And how does Deutsche Börse Group support Europe. Because of Brexit, there is now an even Europe and the Capital Markets Union? more urgent need to strengthen the capital markets within the EU-27 through attractive, stable and Deutsche Börse Group is committed to an open, pan-European capital markets. united, strong Europe as well as to political and economic integration to create a common market: we draw attention to these advantages, which have provided prosperity, peace and freedom in Europe for many decades – here are a few examples: Platforms for European businesses and investors European platforms for European businesses and investors wishing to invest beyond the local sphere would be of particular interest to young companies that require liquidity to expand their business. Deutsche Börse Venture Network® is such a platform. Since 2015, it has been a forum for founders and investors; around US$ 1.85 billion have been activated by the businesses in the What benefits will a Capital Markets Union bring? Network for innovative ideas to date. Capital markets are important for economic growth. Equity indices which invest in the European idea Functioning capital markets contribute to financing For example, the EURO STOXX 50® tracks 50 the growth of start-ups. More intensive cross-border major listed eurozone companies and is considered movements of capital would bring substantial one of the leading stock market barometers in benefits to the European economy. This is because Europe. By contrast, the STOXX® Europe 50 index capital would be more readily available across includes stocks of 50 European companies in 17 Europe: for example, to maintain and expand the states. infrastructure, to establish sustainable pension provision, for structural measures to reduce Greater simplicity and attractiveness in foreign unemployment and to finance digitalisation. New exchange trading investment opportunities could be tapped. 360T, a company of Deutsche Börse Group, allows you to trade 162 foreign exchange combinations in 24 currencies. 78 of these combinations include What will the Capital Markets Union bring for the one or more currencies of an EU member state. financial market? Foreign exchange trading via 360T enables companies to collateralise goods and services Above all, the Capital Markets Union will provide purchased daily in many different currencies, easier and more secure access to capital for independently of banks. growing businesses and the entire real economy in Europe. For example, it would ensure that savers A central European platform for securities have a greater choice of investment types and that TARGET2-Securities (T2S) is the European platform businesses have better financing options. for the harmonised and central settlement of securities in central bank money – one of the biggest financial infrastructure projects in Europe. T2S stands not only for a fundamental restructuring of Europe’s capital markets, the platform also A European Capital Markets Union is good for everyone 3 provides benefits and savings potential for all Deutsche Börse Group – we make markets work participants in securities trading. And the settlement of securities transactions in Europe is becoming Headquartered in Frankfurt/Main, Deutsche Börse faster and less expensive. Group is one of the largest exchange organisations worldwide. It operates markets that provide integri- European business financing through bonds ty, transparency and security for investors wishing At present, European businesses cover around 75 to invest capital and for issuers wishing to raise percent of their need for debt capital via loans and capital. On these markets, institutional traders buy only around one-quarter via the capital market. The and sell shares, derivatives and other financial Capital Markets Union will allow businesses to instruments in accordance with clear rules and finance themselves via the capital market much under strict supervision. more easily and in different ways. For example, the issue of bonds would also offer new and broader Deutsche Börse Group is now more than just a investment forms to investors. trading venue or exchange – it is a provider of financial market infrastructure. Its products and Brexit services span the entire finance value chain – its In the light of Brexit, the EU-27 needs a business areas range from pre-IPO services and the competitive capital market more urgently than ever admission of securities, through trading, clearing, in order to tackle issues such as digitalisation and settlement and custody of securities and other growth finance. We at Deutsche Börse help to financial instruments to collateral management. It strengthen Europe as a business location. also offers IT services, indices and market data worldwide. Ecosystem for growth We have created an ecosystem for growth to enable, for example, companies that are not yet ready for Published by the stock market to obtain funding. Deutsche Börse AG 60485 Frankfurt/Main Deutsche Börse Group has supported the aims of Germany the Capital Markets Union right from the start. And we will stay on it – for the Europe we share. August 2018 Contact Group Regulatory Strategy E-Mail [email protected] .