2016

Activities Report European Capital Markets Institute

TABLE OF CONTENTS

1. Message from General Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. Preview for 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4. Task Force and Research Projec ts 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

A. Nothing ventured, nothing gained: How the EU can boost growth in small businesses and start-ups .... 4 B. Europe’s Untapped Capital Market: Rethinking Integration After the Great Financial Crisis ................... 4 C. Towards a better European securitisation market ............................................................................ 5 D. Eliminating the cost of non-Europe in capital markets ...................................................................... 5 E. More Union for the EU’s IPO Market ............................................................................................... 5

5. Conferences and Seminars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

A. Asset allocation in a low Interest rate Environment: Where do we stand? .......................................... 6 B. How to deal with the resolution of financial market infrastructures? .................................................. 6 C. Capital Markets FinTech: Beyond the hype ...................................................................................... 7 D. Simple, transparent and standardised securitisation (STS): is it possible?........................................... 7 E. 3rd Annual Symposium on EU-Asia Relations in Financial Services ..................................................... 8 F. Asset management in the EU: Which way forward? ......................................................................... 9

ECMI Annual Conference 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

6. Stat i st ica l Package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

7. About ECMI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

8. Selec ted T it les 2010 -2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

9. Jo in ing ECMI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

10. ECMI Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2016 ECMI ACTIVITIES REPORT

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1. Message from General Manager

The European Capital Markets Union initiative is going through turbulent times, with the largest capital market in

the EU on the verge of leaving the Union. Speculating on the importance of the 'passport', the impact on financial

centres and CMU, and the new deal that may emerge between both blocs will certainly keep us busy at ECMI too.

ECMI looks back on a successful year, with a variety of activities and publications, a fascinating annual conference,

with Peter Praet of the ECB board and Get-Jan Koopman of the EU Commission as keynote speakers, and

presentations in various financial centres of the report “Europe's Untapped Capital Market.”

Diego Valiante left ECMI after seven fruitful years leading ECMI to new horizons. We wish to thank him for having

set a very high benchmark for ECMI's research and outreach.

Karel Lannoo - General Manager of ECMI

CEO of CEPS

2016 ECMI ACTIVITIES REPORT

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2. Overview

The European Capital Markets Institute (ECMI) is an independent research institute hosted and managed by CEPS,

which is ranked among the world’s leading think tanks.

In 2016, ECMI contributed to the policy debate on CMU by publishing the Final Report of the European Capital

Markets Expert Group – Europe’s Untapped Capital Market: Rethinking integration after the great

financial crisis, as well as timely commentaries and research reports on Brexit, the role of a single European

capital markets supervisor, IPOs, securitisation, venture capital, and the organisation of events on topical issues

such as capital markets-based solutions for non-performing bank loans, the impact of the low interest rate

environment on asset managers, insurance and pension funds, capital markets, FinTech etc. ECMI also continued

its focus on the configuration of EU-Asia relations in financial services and drafted a policy report on improving the

investor base for local currency bond markets in China, India and Indonesia. For the first time, ECMI successfully

organised a call for papers, which culminated in the award of two prizes to young academics who presented their

work on contingent convertible instruments (CoCos) and cyclical investment behaviour across financial institutions

at the ECMI Annual Conference.

In this Activities Report the reader will find a detailed account of the research projects, publications and seminars

held by ECMI in 2016, together with an overview of its 2017 research programme and more information about

the Institute, its researchers and governance.

ECMI in 2016 – ACTIVITIES in NUMBERS

• Number of total visits to ECMI webpage569 971

• Average daily visits to ECMI website per month43 728

• Participants in annual conference469

• Corporate and institutional members41

• Studies and publications8

• Events organised 7

• Research projects2

• Task Force completed1

2016 ECMI ACTIVITIES REPORT

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3. Activities in 2017

Advancing with CMU is even more important in the current economic and political environment. Brexit is likely to be a

game-changer as the country that hosts Europe’s largest capital markets will no longer be part of the project. Overall,

bolder actions are needed in the coming years, and the mid-term review of the CMU Action Plan (scheduled for 2017)

should not be relegated to a mere tick-box exercise. To this end, ECMI will continue to monitor the initiatives that aim

to provide alternative market-based funding opportunities for companies, in particular SMEs, and better choices for retail

and institutional investors.

Work streams 2017

Launch of a Taskforce on Challenges and Opportunities in the Area of Asset Allocation: a medium to

long-term perspective

Launch of a series of seminars on MiFID II implementation (impact of transparency requirements on fixed

income markets, transaction and trade reporting obligations, provision of investment services)

Diversification of funding sources for SMEs

Retail Distribution Review

Capital markets Fintech

Review of ESAs

Impact of Brexit on financial services

2016 ECMI ACTIVITIES REPORT

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4. Task Force and Research Projects 2016

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RESEARCH REPORT

A. Nothing ventured, nothing gained: How the EU can boost growth in small businesses and start-ups

ECMI Research Report| November 2016

Venture capital can be a lifeline to innovative and growth-oriented start-ups and small businesses in need of external

capital. In this ECMI Research Report, the author argues that the recently proposed changes to the Regulation on

European Venture Capital Funds (EuVECA) fail to address three important issues that could further boost financing:

the extension of the EuVECA Regulation to third-country managers; the reduction of the €100,000 entry ticket

(without further compromises on investor protection); and the harmonisation of rules on managing requirements.

He proposes a number of measures that could facilitate access to financing for start-ups and SMEs.

BOOK

B. Europe’s Untapped Capital Market: Rethinking Integration After the Great Financial Crisis

CEPS Paperbacks | February 2016

In the aftermath of the great financial crisis, the lack of risk diversification in

the European financial system, i.e. limited cross-border banking and capital

markets activities, is the main cause of the rapid retrenchment of capital flows

within national boundaries. Europe needs private risk-sharing mechanisms to

withstand asymmetric shocks such as the recent financial crisis. An EU-wide

action to promote competition among national capital markets could free up

to €1.8 trillion in cash and deposits to invest cross-border in more profitable

and riskier projects to create growth and jobs. In December 2014, ECMI and

CEPS formed the European Capital Markets Expert Group (ECMEG) with the

aim of providing a long-term contribution to the debate on the Capital Markets

Union (CMU) project, proposed by the European Commission.

After an intensive, year-long research effort and in-depth discussions with

ECMEG members, this final report aims to rethink financial integration policies

in the European Union and to devise an EU-wide plan to remove the barriers

to greater capital markets integration. It offers a methodology to identify and

prioritise cross-border barriers to capital markets integration and provides a

set of policy recommendations to improve its key components: price discovery, execution and enforcement. This

report was drafted by Diego Valiante, Head of Financial Markets and Institutions at CEPS and Head of Research at

ECMI, based on extensive research and discussions with the members of ECMEG, chaired by Francesco Papadia,

former Director General of the European Central Bank and other international experts. ECMEG interacted with a

broader Task Force including members from industry, observers from EU institutions, national authorities and

academia. Launch events were organised in Brussels, London, Paris, Milan, and Madrid.

2016 ECMI ACTIVITIES REPORT

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COMMENTARIES

C. Towards a better European securitisation market

ECMI Commentary | November 2016

The European securitisation market experienced constant growth for almost a decade before the financial crisis,

but it then plunged sharply and has never fully recovered. Since 2009, in an effort to revive securitisation and

channel funds to the real economy, European authorities have introduced a considerable amount of new

regulations/legislation, for example, in the areas of banking, insurance, asset management and credit rating

agencies. In this ECMI Commentary, Apostolos Thomadakis finds that these measures have not in fact achieved

the expected results and calls for more to be done. In concrete terms, he calls upon Europe to: 1) issue securitisation

products with transparent and easy-to-understand structures, 2) issue securitisation products with transparent and

easy-to-understand structures, 3) devise smart ways of making cross-border investments easier.

D. Eliminating the cost of non-Europe in capital markets

ECMI Commentary | November 2016

Capital markets in Europe currently lack the necessary depth, scale and integration to provide the funds for

innovative firms to grow, thereby imposing a high cost on both firms and investors. In response to this grave

deficiency, Karel Lannoo calls upon the European Commission to undertake a radical upgrade of the Capital Markets

Union (CMU), along the lines of the Single Supervisory Mechanism (SSM), but with a focus on strengthening the

role of the European Securities and Markets Authority (ESMA) and the European supervisory authorities (ESAs).

Given that much of the rulemaking is complete, he observes that an empowered capital markets supervisor is the

only way to deliver the benefits of a single market.

E. More Union for the EU’s IPO Market

ECMI Commentary | March 2016

In his assessment of the latest draft prospectus Regulation, Karel Lannoo argues that the text goes somewhat

further than the European Commission had previously entertained, but falls short of creating a European market.

In his view, the Commission is hostage to its own (or member states’) unwillingness to expand the powers of the

European Securities and Markets Authority (ESMA) to become an EU-wide listing authority. In short, the EU’s

ambition of creating a Capital Markets Union still seems rather remote.

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5. Conferences and Seminars

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A. Asset Allocation in a Low Interest Rate Environment: Where do we stand?

ECMI - Invest Week event | Brussels | 1 December 2016

In the context of the first ‘Invest Week’ and in

cooperation with Pensions Europe, ECMI staged

an event on Asset allocation in a low interest rate

environment. Moderator (and ECMI General

Manager) Karel Lannoo and his fellow panellists

explored how far current conditions could

undermine the ability of insurance undertakings

and pension funds to fulfil their long-term

financial promises to policy holders and

beneficiaries. On the assets side, it was noted that

the search for yield will remain the norm for years

to come, together with an increasingly high

reinvestment risk. On the liabilities side, a notable

trend is the acceleration of the move towards

unit-linked insurance products and defined contribution pension plans, which shifts the risks from the providers to

consumers. Insurance companies have reacted so far by narrowing the duration mismatch and investing in

alternative assets (real estate, infrastructure, renewables and private equity). Furthermore, asset managers reduced

their fees and face declining returns on their portfolios.

Speakers

Dimitris Zafeiris, Head of Financial Stability, EIOPA

Reinhard Eckl, Associate Director, Deputy Head of Regulatory Strategy, Allianz SE

Philippe Ithurbide, Head of Global Research, Strategy and Analysis, Amundi

Karel Lannoo, CEO, CEPS and General Manager, ECMI (moderator)

B. How to deal with the resolution of financial market infrastructures? Launch of CEPS Task Force interim report | Brussels | 19 October 2016

This CEPS Task Force report welcomed international efforts to devise guidelines to facilitate the resolvability of

financial infrastructures, without calling for detailed rules. European rules on the subject should focus on easing

coordination between supervisors; they should call for restraint from authorities before triggering action, because

of the nature of the entities, but also ensure strong vigilance and identify and remedy impediments to FMI

resolvability. The latter should also make sure that the loss allocation (‘waterfall’) process, especially in a CCP, can

be completed, if necessary, over a ‘resolution weekend’, and that the default fund can be replenished.

As banks become resolvable, attention is now shifting to financial market infrastructures. High on the policy agenda

is the question of how to deal with trouble in central counterparties (CCPs), the entities with net out derivatives

exposures of counterparties in derivatives trading. The European Commission is expected to release a proposal on

this subject very soon, but market participants are concerned that it will further increase the requirements already

set out in the rules on market infrastructures (EMIR). This timely and authoritative report is the result of

deliberations in a CEPS Task Force that examined the rules on resolution of banks and financial market

infrastructures. The group is chaired by Thomas Huertas and attended by financial sector representatives, experts

and officials.

Speakers Thomas F. Huertas, Partner, EY & Chairman of the CEPS Task Force Patrick Pearson, Head of Unit, DG FISMA, European Commission Dennis McLaughlin, Chief risk Officer, LCH Clearnet Karel Lannoo, CEO, CEPS and General Manager, ECMI (moderator)

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C. Capital Markets FinTech: Beyond the hype

ECMI-CEPS Half-day conference | Brussels | 28 June 2016

Panellists debated the issue of automation in financial advice (so-called ‘robo advisors’), and the application of

distributed ledger technology in the trading and post-trading space, in two separate discussion sessions. Robo-

advisers have already stormed the market, but are mostly based on exchange-traded funds (ETFs). Contrary to

popular belief, the field is populated with ‘hybrid’ models, combining algorithm-based investment techniques with

traditional human professional advice. The impact of automated financial advice is likely to be greater for retail

investors than for institutional investors and high-net-worth individuals, as the latter will still require a higher degree

of sophistication. Reduced cost, increasing access to advice, and better product choice were mentioned as being

among the potential benefits of automated advice. Nevertheless, flaws in the algorithms, mis-selling risks and

privacy and data protection concerns could negatively impact the take-up of automated financial advice. Distributed

ledger technology offers multiple opportunities to improve operational processes in the financial services industry,

provided that the different players in the financial ecosystem understand that this is the sustainable alternative

from now on. To this end, trading and post-trading infrastructure operators have already started to test such

technologies and to integrate them into their business models. Questions around the robustness, governance,

supervision, interoperability and cyber security are yet to be answered.

With respect to regulatory approaches on financial innovation, it was noted that a number of supervisory authorities

in Europe (e.g. the UK, BE, CH) have put in place regulatory ‘sandboxes’ through which they encourage businesses

to test innovative products, services, business models and delivery mechanisms without immediately incurring all

the normal regulatory consequences of pilot activities.

Speakers

Rhodri Preece, Head of Capital Markets Policy, CFA Institute

Jeff Salway, Member, Financial Services Consumer Panel

Matthieu Remy, Founder & CEO, Easyvest

Jenny Knott, Chief Executive Officer, Post Trade Risk and Information, ICAP

Pinar Emirdag, Non-Executive Director, Clearmatics

Rhodri Preece-Jones, Head of European Development, Nasdaq

Frank Versmessen, Head of Regulatory Affairs, SWIFT

Jean-Paul Servais, Chairman, FSMA and Chairman of ERC, IOSCO

D. Simple, transparent and standardised securitisation (STS): Is it possible?

ECMI lunchtime meeting | Brussels | 22 June 2016

In an effort to revive securitisation markets, the

European Commission proposed a special ‘STS’

label and related capital charge reductions. The

criteria stipulate: i) simplicity, i.e. the loans must

be bundled and transferred to a special purpose

entity (SPE), ii) transparency, i.e. the data

regarding the performance of the underlying

assets must be readily available to investors and

updated on a regular basis, iii) standardisation,

i.e. the financial management must follow

generally accepted practices. The proposal does

not harmonise the national rules for SPEs, nor

does it tackle the differences in national

insolvency laws that affect the claims on

underlying assets. On the supervisory side, notification of STS products should go to ESMA, which publishes the

information on its website. Market participants indicated that the market performance in European asset-backed

securities has been very good so far and that there had been hardly any defaults in the aftermath of the crisis.

Furthermore, they argued that the current capital charges are too high today in relation to the risk incurred. Banks

2016 ECMI ACTIVITIES REPORT

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consider securitisation as a vital funding tool that can help free up their balance sheets and allow them to lend

more to households and businesses. Institutional investors stressed that it allows them to achieve the desired

portfolio diversification and exposure to consumers and SMEs.

Critics of the proposal explained that it would not remove the complexities of these securitised products. Most likely,

it would increase interconnectedness, pro-cyclicality and leverage in the financial system rather than create diversity

or contribute to financial stability. In their view, the risk retention should be much higher, at 20% instead of 5%.

The latter element was retained in the European Parliament’s initial report on the proposal, together with an

enhanced role for ESMA in the European Securitisation Data Repository, a single reporting entity for all STS

instruments.

Speakers Almoro Rubin de Cervin, Head of Unit, Financial services policy and international affairs, DG FISMA,

European Commission

Menno van den Elsaker, Head of European ABS at APG Asset Management

Paul Tang, MEP, ECON Committee, European Parliament

Steve Gandy, Managing Director and Head of DCM Solutions, Santander Global Banking and Markets

Nicholas Dorn, Associate Research Fellow, Institute of Advanced Legal Studies (IALS), University of London

Stefan Rolf, Head of Asset Backed Securitisation and Treasury Coordination Asia-Pacific Region,

Volkswagen Financial Services AG

E. 3rd Annual Symposium on EU-Asia Relations in Financial Services ECMI-CEPS Symposium | Beijing | 26-27 May 2016

The implementation of Basel III requirements is impacting banks’ trading books, but the full extent of this is still

unclear; a more proportionate approach could therefore be considered. The over-reliance on the banking sector

remains a threat to financial stability. The development of local currency bond markets in both Europe and Asia is

crucial to diversify the financial system, but significant barriers remain for the development of a sound legal and

market infrastructure, especially in Asia. Meanwhile, shadow banking has developed differently across jurisdictions,

e.g. market-based finance in the US and Europe compared to bank-like financial intermediation in Asia. In China,

this form of unregulated banking service is gradually approaching traditional banking services in size. The shift

towards more inter-institutional shadow banking activities could give rise to potential systemic risks. But volatility

in Asia’s stock markets suggests that more defaults are still to come, especially in China, where the capital-to-output

ratio is at a historical high. Less discretionary actions by local governments and greater diversification of the investor

base for local financial markets in main emerging economies could increase the soundness of the Asian financial

system and the economy overall.

Moreover, companies’ financial technologies (FinTech) are increasingly put to multiple applications, e.g instant

payments, digital currencies and monetary policies, artificial intelligence and advisory services, blockchain and

securities settlement and even regulatory compliance. These new tools redefine the financial industry, but the full

extent of such developments is yet to be fully understood. Asia leads these developments, especially in retail

financial services. The neutrality of technology for regulation has led to a ‘wait and see’ approach by regulators that

aims to balance the need for innovation with risk mitigation actions.

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F. Asset Management in the EU: Which way forward?

CEPS-ECMI Half-day conference| Brussels | 10 March 2016

The European asset management sector remains

highly fragmented, resulting in a suboptimal size of

funds and higher costs for investors. As underlined in

participants’ discussions, much more needs to be done

to achieve a truly Pan-European market that is

competitive, attractive and transparent vis-à-vis its

investors (in particular the retail segment). In this

context, the Retail Distribution Review, which will be

conducted at EU level throughout 2018, aims to

investigate whether the current distribution channels

are fit for purpose. It will also examine whether

adequate incentives have been put in place to induce

new business models to emerge, e.g. cross-border

online platforms.

At present, the differences in the general notification procedure, registration fees, local paying agent requirements,

review of marketing materials by national regulators, additional obligations around investor disclosure and even

different tax treatment of foreign vs local funds simply make it more burdensome and ultimately more costly for

providers to distribute funds on a cross-border basis. The growth of the asset management sector has also drawn

the attention of policymakers to the industry’s business model and the different risks involved, including risks to the

system, to individual institutions and to clients. The rules currently applicable to asset managers are much more

related to the conduct of business than micro- and macro-prudential rules. Panellists agreed that steps should be

taken to avoid regulatory spillovers from the banking sector to the asset management sector. Nevertheless, the

existing links between asset managers and banks need to be analysed much more carefully. Increased information

on liquidity and leverage risk across asset managers is essential to understanding the risks posed to financial stability

by the asset management sector.

Speakers Diana Mackay, CEO, Mackay Williams LLPPatrick Pearson, Head of Unit, DG FISMA, European

Commission Jonathan Lipkin, Director of Public Policy, The Investment Association

Carsten Detken, Head of Financial Stability Surveillance Division, DG Macro-Prudential Policy & Financial

Stability, European Central Bank

Sheila Nicoll, Head of Public Policy, Schroder Investment Management

Joanna Cound, Head of Government Affairs and Public Policy, Europe, BlackRock

Guillaume Prache, Managing Director, Better Finance

Sven Gentner, Head of Unit, Asset Management, DG FISMA

Ronald W. Anderson, Professor of Finance, London School of Economics and Political Science

Gerben Everts, Member of the Executive Board, Netherlands Authority for the Financial Markets

Sven Kasper, Director EMEA, Regulatory, Industry and Government Affairs, State Street

2016 ECMI ACTIVITIES REPORT

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ECMI Annual Conference 2016

Towards the Right Policy Mix for a Thriving European Capital Market

9 November 2016 • National Bank of Belgium

The 2016 ECMI Annual Conference was jointly organised by the European Capital Markets Institute and the Brevan Howard Centre for Financial Analysis at Imperial College Business School. Hosted by the National Bank of Belgium, this high level event brought together over 30 speakers (academics, policymakers, and market participants) to share their expertise with more than 300 participants from across Europe and beyond and to discuss the challenges of creating a genuine European capital market.

Sessions

What is the impact of negative interest rates on Europe’s financial system? How do we get back to normal? Market-based solutions to bank restructuring: Can active financial markets help to clean up banks’ balance

sheets? Reshaping the governance of Europe’s capital markets: Is enforcement the ‘weakest link’? Blockchain and other new technologies: What will capital markets look like as the 21st century unfolds?

ECMI Call for papers

28 submissions (Europe, North and South America, Asia, Africa) from academia, industry, public authorities, national central banks

2 rounds of review 2 winning papers (€2,500 prize, publication in the ECMI working papers series)

Winning Papers

Stephanie Chan, University of Amsterdam: “Contingent convertible instruments (CoCos): Design, Risk Shifting Incentives and Financial Fragility” (with Sweder van Wijnbergen) Yannick Timmer, Trinity College Dublin: “Cyclical Investment Behaviour across Financial Institutions”

2016 ECMI ACTIVITIES REPORT

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Keynote Speakers

Peter Praet Miles Kimball Gert-Jan Koopman Fernando Restoy Sébastien Raspiller Andrei Kirilenko

Peter Praet, Executive Board Member and Chief Economist, European Central Bank

Miles Kimball, Eugene D. Eaton Jr. Professor of Economics, University of Colorado Boulder Gert-Jan Koopman, Deputy Director-General for State Aid, DG Competition, European Commission

Fernando Restoy, Deputy Governor, Governor, Banco de España

Sébastien Raspiller, Deputy Director, Corporate Financing and Financial Markets Division, Directorate General of the Treasury, French Ministry of Economy and Finance

Andrei Kirilenko, Director of the Centre for Global Finance and Technology, Imperial College London

Conference Report

A full report of the ECMI Annual Conference is available at http://www.eurocapitalmarkets.org/2016AC together

with the presentations of the speakers.

2016 ECMI ACTIVITIES REPORT

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6. Statistical Package

Access content @ eurocapitalmarkets.org

The most comprehensive overview of Europe’s capital markets

The ECMI Statistical Package is a comprehensive collection of the most relevant data on various segments of

European and global capital markets. It enables users to track trends and highlight the ongoing transformation of

capital markets, including the structural changes brought about by competitive forces, innovation and regulation.

It represents an important step towards overcoming the existing data fragmentation on the evolution of European

capital markets by offering a ‘one-stop-shop’ for market participants, regulators, academics and students. The 2016

version contains data on equity markets, debt securities, securitisation, covered bonds, exchange-traded and over-

the-counter derivatives, asset management, mutual funds, insurance companies and pension funds, and global

comparative data. Each table has a corresponding illustrative figure that gives a visual overview of the most

important trends, and user-friendly navigation is embedded throughout the programme.

The package is available in Excel format at www.eurocapitalmarkets.org/statistics free of charge for ECMI members.

Non-members may purchase it via the bookshop of CEPS at www.ceps.eu.

ECMI Statistical Package 2015

Provides Covers

Over 150 tables

Over 120 figures

Data for over 40 stock exchanges

Data for 40 Countries

Covering up to 25 years (1990-2015)

Equity market

Debt securities market

Exchange-traded derivatives market

Over-the-counter derivatives market

Comprehensive data on asset management

Gross domestic product

Exchange rate

Global comparative data

2016 ECMI ACTIVITIES REPORT

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7. About ECMI

Access content @ eurocapitalmarkets.org

Informing Policy on European Capital Markets

The European Capital Markets Institute (ECMI) conducts independent research and informs debate and policymaking on a broad range of issues relevant to capital markets. Through its various activities, ECMI facilitates interaction among market participants, policymakers and academics.

ECMI was established as an independent non-profit organisation in 1993, in a collaborative effort by the European Federation of Financial Analysts Societies (EFFAS), the Federation of European Securities Exchanges (FESE) and the International Capital Market Association (ICMA). Membership of ECMI is open to private companies/ organisations, regulatory authorities and university institutes. Since 2005, ECMI has been managed and staffed by CEPS, a highly reputed, independent think tank in Brussels.

Through its Commentaries and Policy Briefs, ECMI analyses the latest regulatory developments and puts forward proposals and recommendations to help shape the regulatory and policy debate. ECMI also produces detailed Research Reports on key policy issues and market developments. As well as conducting in-house research, ECMI responds to calls for proposals from external entities and hosts contributions from high profile researchers.

ECMI regularly organises workshops, seminars and Task Forces on a variety of issues facing European capital markets. Participation in ECMI events offers multiple networking opportunities. The Annual Conference is a unique event in Brussels, bringing together over 30 high level speakers and more than 300 participants.

The yearly edition of the Statistical Package is a comprehensive collection of the most relevant data on various segments of European and global capital markets, covering equity markets, debt securities, securitisation, covered bonds, exchange-traded and over-the-counter derivatives, asset management, mutual funds, insurance companies and pension funds.

ECMI also publishes a quarterly Newsletter to inform members of recent and upcoming research projects, task

forces, conferences and meetings, and other relevant information on European capital markets.

Chairman of ECMI

Fabrice Demarigny, Global Head of Financial Advisory Services and Capital Markets, Mazars,

Board of Directors

Karel Lannoo, CEO, CEPS

Ramon Adarraga, Director, Bolsas y Mercados Españoles (BME)

Joanna Cound, Managing Director, Government Affairs & Public Policy, BlackRock

Godfried De Vidts, Head of European Affairs, ICAP

Patrik Karlsson, Director, Market Practice and Regulatory Policy, ICMA

Rhodri Preece, Head, Standards & Financial Market Integrity, EMEA, CFA Institute

Rainer Riess, Director General, Federation of European Securities Exchanges, FESE

Tanguy van de Werve, Managing Director, Advocacy, Association for Financial Markets in Europe, AFME

Andrew Douglas, Chief Executive Officer, DTCC Derivatives Repository Ltd, Managing Director of

Government Relations for Europe and Asia

2016 ECMI ACTIVITIES REPORT

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Academic Committee Members

Florencio López de Silanes, Professor of Finance, EDHEC Business School

Marco Lamandini, Professor of Commercial Law, University of Bologna

Pierre-Henri Conac, Professor of Commercial and Company Law, University of Luxembourg

Jesper Lau Hansen, Professor of Financial Markets Law, University of Copenhagen

ECMI Researchers

Karel Lannoo has been CEO of CEPS since 2000. His publications include books,

numerous articles in newspapers, specialised magazines and journals on general

European public policy, and specific financial regulation and supervision matters.

Karel’s latest book The Great Financial Plumbing, From Northern Rock to Banking

Union, was published in 2015. He is a regular speaker at hearings for national and

international institutions (i.e. the EU Commission, European Parliament), at

international conferences and in briefings for executives. He is also rapporteur for

many CEPS task forces, chaired by senior European officials and business leaders.

Karel manages the European Capital Markets Institute (ECMI) and the European

Credit Research Institute (ECRI), both under the auspices of CEPS. He is also an

independent director of BME (Bolsas y Mercados Espanoles), the listed company that

manages the Spanish securities markets. Karel is also a member of the Euribor

Steering Committee, European Money Markets Institute (EMMI) and a non-executive

director of Lannoo Uitgeverij Group.

Dr. Apostolos Thomadakis joined ECMI as Researcher in October 2016. His

research focuses on issues related to capital markets (access to capital, capital

markets union, regulation and securitisation) and financial markets (identification of

regimes, contagion and predictability). Previously he was a Visiting Scholar at the

Applied Macroeconomic Research Division at the Bank of Lithuania (BoL) and at the

Foreign Research Division at the Austrian National Bank (OeNB). Apostolos has held

academic positions and taught Econometrics and Finance courses at the University of

Warwick, the London School of Economics, the University of Bath and the University

of Surrey. He has also completed a Traineeship in the Capital Markets and Financial

Structure (CMT) Division of the European Central Bank (ECB) and a PhD Internship

in the Country and Financial Sector Analysis Division of the European Investment

Bank (EIB). He holds a PhD in Economics and an MSc in Business Economics and

Finance from the University of Surrey, and a BSc in Physics from the Aristotle

University of Thessaloniki.

Cosmina Amariei, Researcher, joined ECMI in May 2014. Her main research areas

are: trading and post-trading market infrastructure, asset management, retail and

institutional investors, corporate finance, Fintech. Cosmina closely follows a series of

legislative dossiers, such as CMU, MiFID 2/MiFIR, MAR, EMIR, CSDR, UCITS, AIFMD,

PRIIPS. In the past, she participated in training programmes for young professionals

at the National Bank of Romania (EU Affairs department) and the Romanian

Commercial Bank - Erste Group Bank AG (Financial Institutions division). She has an

MSc in International Economics and EU Affairs (Bucharest University of Economic

Studies and) and a BSc in Economics (Babeş-Bolyai University of Cluj-Napoca) and

participated in an Erasmus exchange programme in International Finance (University

of Leuven - Campus Brussels).

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8. Selected Titles 2010-2016

CEPS-ECMI Task Force Reports

How to deal with the Resolution of Financial Market Infrastructures, Interim Report, Thomas

Huertas, October 2016

Europe’s untapped capital market: Rethinking integration after the great financial crisis, Report

of the European Capital Markets Expert Group (ECMEG), Diego Valiante, Cosmina Amariei, Jan-Martin Frie,

February 2016

Price Formation in Commodities Markets: Financialisation and Beyond, Diego Valiante, September

2013

Saving for Retirement and Investing for Growth, Mirzha de Manuel Aramendía, September 2013

Rethinking Asset Management: From Resilience to Investor Protection and Economic Growth,

Mirzha de Manuel Aramendía and Karel Lannoo, April 2012

MiFID 2.0: Casting New Light on Europe’s Capital Markets, Diego Valiante and Karel Lannoo,

February 2011

Restoring Investor Confidence in European Capital Markets, Report of the European Investors

Working Group (EIWG) and ECMI, in collaboration with the Centre for Financial Market Integrity (CFA),

February 2010

CEPS-ECMI Paperbacks

The Great Financial Plumbing: From Northern Rock to Banking Union, Karel Lannoo, October 2015

A Legal and Economic Assessment of European Takeover Regulation, Christophe Clerc, Fabrice

Demarigny, Diego Valiante and Mirzha de Manuel Aramendía, December 2012

ECMI Research Reports

Policy Report on Improving the investor base for local currency bond markets in China, India and

Indonesia (for GIZ - the German International Cooperation Agency) - forthcoming

Nothing ventured, nothing gained: How the EU can boost growth in small businesses and start-

ups, Apostolos Thomadakis, November 2016

Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries, Federico

Infelise, April 2014

MiFID Implementation in the midst of the Financial Crisis: Results of an ECMI Survey, Diego

Valiante and Bashir Assi, February 2011

Shaping Reforms and Business Models for OTC Derivatives: Quo vadis? Diego Valiante, April 2010

ECMI Working Papers

Contingent convertible instruments(CoCos): Design, Risk Shifting Incentives and Financial

Fragility, Stephanie Chan (January 2017)

Cyclical Investment Behaviour across Financial Institutions, Yannick Timmer (forthcoming)

A Life Cycle Approach to Investor Protection, Mirzha De Manuel Aramendía, Diego Valiante, September

2014

ECMI Policy Briefs

No. 22 Which Union for Europe’s Capital Markets?, Karel Lannoo, 13 February 2015 No. 21 A Proper Yield Curve for Greece to Kick-Start Financial Intermediation, Christian Kopf and

Miranda Xafa, December 2013 No. 20 Europe’s New Post-Trade Infrastructure, Karel Lannoo and Diego Valiante, November 2012 No. 19 Pending issues in the review of the European market abuse rules, Carmine Di Noia, February 2012 No. 18 NYSE Euronext-Deutsche Börse Merger, Diego Valiante, March 2011

No. 17 What reforms for the credit rating industry? A European perspective, Karel Lannoo, October 2010 No. 16 The MiFID Metamorphosis, Karel Lannoo and Diego Valiante, April 2010 No. 15 Regulatory Challenges for the EU Asset Management Industry, Karel Lannoo, April 2010

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No. 14 Comparing EU and US Responses to the Financial Crisis, Karel Lannoo, January 2010

ECMI Commentaries No. 45 Towards a better European securitisation market, Apostolos Thomadakis, November 2016 No. 44 Eliminating the cost of non-Europe in capital markets, Karel Lannoo, November 2016 No. 43 EU Financial Market Access after Brexit, Karel Lannoo, September 2016 No. 42 More Union for the EU’s IPO Market, Karel Lannoo, March 2016 No. 41 Brexit and the City, Karel Lannoo, January 2016 No. 40 Light and shadows in Europe’s new Action Plan for Capital Markets Union, Diego Valiante, 6 October 2015 No. 39 Detailed CMU Action Plan, but more (ambition) is required, Karel Lannoo, 4 October 2015 No. 38 Keep capital markets union simple, Karel Lannoo, 15 July 2015 No. 37 Why the regulatory witch-hunt for ‘closet trackers’ is a dead-end, Jean-Pierre Casey, 9 December 2014 No. 36 The OTC derivatives markets after financial reforms, Cosmina Amariei and Diego Valiante,

23 May 2014 No. 35 Why a more accurate EU definition of SMEs matters!, Federico Infelise, Diego Valiante, 15 November

2013 No. 34 Implementing the AIFMD: Success or Failure?, Mirzha de Manuel Aramendía, 28 March 2013 No. 33 Will the PRIPs’ KID live up to its promise to protect investors?, Mirzha de Manuel Aramendía, 7

July 2012 No. 32 The Euro Prisoner’s Dilemma, Diego Valiante, 24 February 2012 No. 31 The gloomy scenario of Italy’s default, Diego Valiante, 16 December 2011 No. 30 MiFID 2.0 Unveiled, Karel Lannoo, 4 November 2011 No. 29 Commodity Price Formation in Boom-and-Bust Cycles, Diego Valiante, June 2011

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9. Joining ECMI

Why become a member? Becoming a member of ECMI allows you to:

Stay well-informed on the latest market and regulatory developments in European capital markets Support policy-oriented research to enhance the growth potential of European capital markets Benefit from our in-house expertise through meetings, conference calls or webinars with our staff Engage with extensive networks of market participants, regulators and academics Gain preferential access to Task Forces, with up to 70% discount over non-member fees Attend our events (annual conference, seminars, workshops, symposia) at no extra cost Become a partner/co-host in the organisation of dedicated events Participate at public consultations (interviews, questionnaires, roundtables)

Receive regular updates with our publications (commentaries, policy briefs, working papers) Gain free access to our statistical package, a comprehensive overview of Europe’s capital markets Subscribe to our quarterly newsletter including our recent and forthcoming activities Participate in the board meetings and/or annual general meeting of members

Membership options Membership is open to institutions, associations and corporations as well as universities and business schools. There

are three different types of membership options at ECMI:

Corporate/Institutional EUR 3,000/year (36 months) EUR 5,000 (12 months)

Board EUR 5,000/year (36 months)

Academic/University EUR 500 (12 months)

You will be invoiced for the annual fee every 12 months, on the date you become a member. Minimum duration of membership is 12 months or 36 months, depending on the option above, and will

be renewed tacitly afterwards. Notice of cancellation is required at least 3 months in advance of the issuance of the next invoice (for the 36-month option, after the first 24 months).

Please note that 21% VAT may apply to your membership fee, in accordance with Belgian tax law. Only undertakings whose business focus is capital markets will be admitted to membership of ECMI,

separately from CEPS. Please contact us if you have any questions in this respect.

Next steps Learn more at http://www.eurocapitalmarkets.org/about-ecmi/membership. For more information please contact

us at our email address ecmi@ceps.eu or phone as at +32 2 229 39 82.

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10. ECMI Members

www.eurocapitalmarkets.org | ecmi@ceps.eu

Tel: +32 2 229 39 78 | Fax: +32 2 219 41 51 | 1 Place du Congrès - 1000 Brussels

European Capital Markets Institute

Informing policy on European capital markets