The Impact of the Euro on Money and Bond Markets

By Javier Santillán, M. Bayle, C. Thygesen. Social Science Research Network, 2000

123 citations recorded by the source corpus.

The paper provides an analysis of the euro area money and bond markets and their infrastructure since the introduction of the euro. Significant development in terms of integration took place in both markets in general to a various degree for the different segments. However, there remain room for further integration after the first year of Stage III of EMU notably regarding the bond market which lags behind in terms of liquidity, market completeness and overall size compared to the US corporate bond market. Analysis of the barriers to integration, which do not seem to be specific to these markets but apply more generally to euro securities infrastructure, identifies fields where further action is required. This covers (i) the lack of availability of cross-border settlement on a DVP basis, (ii) the lack of standardised legal documentation for repos, (iii) the lack of common practices concerning settlement procedures, (iv) the lack or harmonisation of collateralisation processes between national central banks and interbank operations, (v) the heterogeneity in fiscal and accounting procedures and, (vi) the need for a clearing house.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/80876f68f55554db4e843e1521d9ffc2d0a6673f

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Citations in the corpus

Banking Integration in the Euro Area (2002, background): “ Santillan et al., 2000; ESCB 2002, and Ciampolini and Rhode, 2000).6 Derivatives are becoming increasingly important, because of increasing use of such instruments for risk management and re-allocation purposes.”
The Microstructure of the Euro Money Market (2001, unknown): “(This figure is taken from an ECB Market Operations Committee Survey covering Belgium, Finland, France, Germany, Ireland, Italy, Portugal and Spain, which is summarised in Santillàn et al., 2000, annex 2, table 1.)”
Central banking and the infrastructural power of finance: the case of ECB support for repo and securitization markets (2020, methodology): “…for monetary policy implementation, the ow nloaded from https://academ ic.oup.com /ser/article/18/2/395/4883362 by guest on 31 January 2022 ECB used its operational framework strategically to foster ‘unification and standardisation’ in the interbank money market (Santillan et al., 2000, p. 7).”
The ECB Monetary Policy Strategy and the Money Market (2001, background): “This view is further reinforced as this market is not as deep and liquid as the euro area money markets (see Santillan et al (2000)).”