Europe’s capital markets have real strengths, but they haven’t yet translated into the global influence they should command. Between 2006 and 2022, the EU’s share of worldwide capital market activity dropped by 44 percent. That figure is hard to ignore, and it highlights just how much work lies ahead. As financial centres across the globe keep reinventing themselves, Europe has a decision to make: carry on with fragmented, country-by-country approaches, or finally move toward genuine integration and efficiency.
For me, the answer is obvious. If Europe wants to stand tall on the world stage, we need to dismantle the barriers between our markets and tap the full liquidity of a unified capital market. At Clearstream, that’s exactly the role we play. Our Pan-European CSD solution delivers Europe via one securities account – One account, One platform, One partner.
What’s been holding Europe back?
On the technical side, Europe has made progress. Systems such as T2S and the European Collateral Management System (ECMS) were designed to pull activity onto centralised platforms. But the reality is they don’t yet run as smoothly as intended. Settlement across borders is still complicated, liquidity is split into too many pools, and processes differ widely depending on the country.
Then there’s the regulatory patchwork. Each member state sticks to its own rules on taxation, investor incentives, and securities law. That patchwork makes the dream of a true Savings & Investments Union hard to achieve. The European Commission’s discussion of a “28th regime” could help by creating a harmonised regulatory framework. If it moves forward decisively, it might be the breakthrough we need.
Europe doesn’t lack talent, scale, or investors – it lacks cohesion.
Clearstream’s role: One account. One platform. One partner.
This is why infrastructure matters. At Clearstream, we’ve spent years building a Pan-European CSD solution that allows clients to access major markets through a single securities account. No need to juggle dozens of CSDs, each with different systems. One account, One platform, One partner.
And this isn’t just about connectivity. We’ve streamlined asset servicing, corporate actions, collateral management, and reporting across the board. Our single collateral management (CmaX) platform brings together collateral from both central bank and commercial bank money. Our Clearstream Data Layer provides dashboard-style, predictive reporting so clients can see, at a glance, whether their liquidity or settlement processes are working as efficiently as they could.
The end result is simple: we take complexity off the table and give clients flexibility in how they operate.
The journey to T+1
Alongside the push for integration, another major change is taking place in Europe’s move to a T+1 settlement cycle. This is a great step forward and forces the industry to strip out inefficiencies and modernise. In that way, it accelerates progress toward a more integrated post-trade landscape.
Clearstream is already ready. Our systems are settlement-cycle agnostic, and we’re equipping clients with tools to handle the transition. Smart realignment services will ease cross-border settlement between the ICSD and T2S markets, and our data capabilities help firms spot issues early and avoid penalties. Our job is to ensure clients make the shift with confidence.
Even though there is a lot of work and education ahead of us, handled properly, T+1 will strengthen Europe’s markets rather than burden them.
Data, digitisation and digital assets
Looking further ahead, AI-powered data capabilities and digitisation will be critical. Clearstream’s settlement data suite delivers robust data and predictive analytics to support clients minimise settlement failures, avoid regulatory penalties, and enhance operational efficiency.
The future of the digital asset world comes with single wallet that can contain cash, securities, stablecoins, crypto or tokenised assets. Bringing the analogue, digitised, and tokenised worlds together in one place gives clients choice and security without multiplying the number of platforms they need to manage.
That transition is coming in the near future and will certainly open doors.
With our D7 platform and crypto custody services, clients can already issue, hold, and manage both traditional and digital securities inside the same infrastructure they trust today. Whatever form assets take, the principle remains the same: One secure, reliable point of access.
Can funds help solve Europe’s market challenge?
Europe hosts some of the world’s largest fund markets and products like ETFs are a natural way to bring in new investors. ETFs are inexpensive and easy to access, making them a popular entry point for individuals. In fact, almost half of ETF investments here in Europe now flow through savings schemes where people invest modest sums each week.
This is a powerful trend, widening access and creating steady inflows. But the European ETF market remains fragmented. We have more listed ETFs than the US, yet liquidity is only about a fifth as deep. What Europe needs is not more ETFs per se, but stronger secondary markets and more concentrated liquidity.
Clearstream is tackling exactly that, streamlining ETFs across order routing, settlement, and asset servicing. With over €1 trillion in ETFs already held across our systems we are determined to simplify access even further. We bridge ICSD and T2S to deliver seamless settlement, deep liquidity, and the confidence to grow. Wherever market participants trade – on-exchange or OTC, cleared through Eurex, LCH, or beyond – Clearstream ensures smooth ETF settlement.
Done right, funds can indeed become a cornerstone of Europe’s capital market growth.
Looking ahead
Yes, Europe’s capital markets face challenges: fragmented regulation, uneven processes, and fierce international competition. But there are reasons to be positive. Brussels is showing fresh urgency. Investor behaviour is shifting in ways that favour long-term growth. And technology is giving us the tools to rethink what’s possible.
Clearstream’s mission is straightforward: break down fragmentation and deliver Europe via One securities account, One Platform and One Partner. Whether through harmonised settlement, a smooth T+1 transition, or digital innovation, we are building the infrastructure that will allow Europe’s markets to thrive.
A stable, secure, agile, and interconnected market will attract global investors and unlock the vast potential of a truly integrated European capital market. Clearstream remains strongly committed to that cause.
One account. One platform. One partner. That’s how we deliver integration. That’s how Europe regains its competitive edge.