Capital markets in Europe are dynamic in nature and play a key role in boosting the region’s economy. These markets can be influenced to a large extent by economic variations in nearly any part of the world, depending on the magnitude of the variation and the geographical significance of the region(s) involved. For instance, the Euro crisis and the US subprime crisis in 2011 paved the way for the implementation of various regulatory reforms in both these regions.
These reforms are expected to influence the operations and fund movement in Europe’s capital markets for the next few years. Among the numerous regulations being implemented in Europe at present, it has been observed that the Revised Prospective Directives, the Money Transactions Offices Act and the Ban on Bonuses for Entities Receiving State-aid regulations may have a major impact on the functioning of business organisations in the continent.
Key findings of the survey:
· 80%of the respondents indicated that the regulations being currently implemented in Europe’s financial markets are expected to make business operations increasingly reliant onthe usage of IT.
· Seven out of ten respondents indicated that they have adopted measures to manage the impact of new reporting regulations in the financial markets. Moreover, anticipation of complicated reporting standards has led to organisations restructuring their business models to facilitate the deployment of efficient, customised IT systems.
· 80% indicated that with such measures in place, the on-going impact of market instability is expected to have a slightly reduced impact on Europe’s financial markets in the next five years; in fact, these markets are expected to witness increased usage in the form of swaps, derivatives and hedge funds.
Joakim Wiener, CEO of TradeTech Consulting, commented, "Various regulatory policies such as Basel III Capital Requirements and Consumer Protection Agenda are expected to have significant impact on the business operations due to increase in demand for IT usage in the Financial Institutions.
About the survey
A judgmental sampling survey was conducted in the Banking and Insurance industries in Nordic, Netherlands, the UK and other European countries. The survey, which has a confidence level of 95%, involved in-depth one on one interviews with senior financial executives. Their job titles include: Compliance Officers, Chief Financial Officers, Chief Executive Officers, Head of Administration, Chief Risk Officers, Economic Capital Modellers, Heads of Capital Management, Heads of Business Support, Heads of Treasury, Heads of Capital Markets, etc
A whitepaper based on the study is available for download at: