The Five Years Ahead - A new action plan for Europe’s financial markets?

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The 2014 ECMI Annual Conference brought together again more than 350 academics, policy-makers and market participants from across Europe and beyond. The event focused on important challenges for Europe’s financial markets. Financial fragmentation remains a drag over some national economies and a session questioned whether the creation of the Banking Union can reverse the trend without a fiscal backstop to the resolution mechanism. The second session discussed how the law can shape liquidity in the financial system before a financial crisis, with its implementation, and after, with its relaxation. Nonetheless, more robust action to increase capital provisions for banks and to pursue similar actions into shadow banking activities is needed. Third session discussed financial markets microstructure and how highfrequency trading is reaching the end of its speed race with risks for market functioning. The panel discussed whether we are approaching the end of continuous trading. The last session offered an overview of the challenges that crowdfunding faces as a more important source of funding for advanced economies.