Connecting interests

ambition - Regulatory strategy

We develop fair markets

Lack of transparency, unhedged exposures, inefficient risk management, loopholes in financial markets regulation: not so long ago, these and other factors helped destabilise the financial system up to a point when, in 2008, a global crisis broke out – a crisis which has prevailed since then. The first measures implemented by decision-makers in their efforts to deal with this crisis focused on creating sustainable stability by regulating and realigning the international capital markets. Neutral financial markets infrastructure providers, such as Deutsche Börse Group, played a key role in this realignment since they connect a heterogeneous group of capital markets participants with regulators. The providers of such infrastructure carry a heavy load of functional, strategic and macroeconomic responsibility.

Alexandra Hachmeister

Head of Regulatory Strategy, Deutsche Börse Group

She is the head of Regulatory Strategy in the Public Affairs section at Deutsche Börse Group. She is a member of the Group Management Committee.

Current developments

The G20’s commitment to strengthening the system triggered, amongst other things, the regulation of OTC derivatives trading enshrined in the European Market Infrastructure Regulation (EMIR) of 2012. Current regulatory efforts aimed at financial instruments trading (MiFID/MiFIR) and central securities depositories (CSD-R), as well as the creation and dissemination of benchmarks, are all designed to remedy the mistakes that resulted in the financial markets crisis.

Regulation and growth are two sides of the same coin

Smart regulation of European capital markets may prove to be a powerful engine to drive the sector. This is of particular importance from a competitive point of view, especially with regards to the financial centres in Asia and the US. And because of global competition, it is high time Europe turned its attention back to growth, fostering investments and new approaches – the main objective of the European Capital Markets Union. The EU Commission under Jean-Claude Juncker initiated the Capital Markets Union in 2015 to strengthen cross-border capital flows and provide businesses with better funding sources. Deutsche Börse supports this important project to the best of its abilities, for example through its newly established Deutsche Börse Venture Network.

Efficient application of regulatory rules

Transparency, fairness, neutrality, stability and efficiency are Deutsche Börse Group's core values. They have enabled the Group to act as a reliable partner for policymakers and regulators, in particular over these last years, and help clients fulfil diverse regulatory requirements along their value chain. This is essential for a heavily regulated provider of infrastructure to the financial markets. Regulation has become a key driver of Deutsche Börse Group’s strategy.

The added value this strategy provides lies in the dedicated and timely analysis of economic and capital market issues as well as of regulatory trends, since it lays the groundwork for strategic dialogue with politicians and regulators on the effects of regulation. Deutsche Börse Group in turn reflects the results of this dialogue in products and services for the benefit of all market participants, for example in their regulatory reporting platform (see “Our clients have a say”) or post-trading offers for TARGET2-Securities (see “A new architecture of trust”).