European Monetary Union and European securities markets

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clearing, settlement and legal procedures. Therefore, the member states of EMU will have a powerful impetus to the improvement of the financial infrastructure.

Eliminating exchange risk, interest rates convergence and harmonization of working methods of the market will help expand the scale and increase the liquidity of the European securities market. Stocks and bonds are denominated in euros, and trade will go beyond national markets. As a result, competition between exchanges trading securities quoted on several barges, will focus on two or three. Reduced operating costs increase liquidity even those markets that are now divided into segments due to differences in interest rates and significant restrictions (in some EU countries, there are some restrictions on trade in certain types of securities).

Barriers to the movement of capital within the EU will be eliminated, cease to operate some currency and investment restrictions currently exist in the EU, imposed on the activities of investment pools such as pension funds and insurance companies. As a result of the diversification of portfolios of institutional investors to increase the EU quickly. The investment portfolio decreased share of assets in European currencies, prevailing in them at the moment, and gradually

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