Analysis and Evaluation of the Eurex Repo Market Model (PDF)

Diploma Thesis from the year 2004 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3 (A), University of Innsbruck (Banking & Finance), language: English, abstract: Europe is a leading world centre for financial markets alongside North America and the
Far East. European securities exchanges play a vital role in these markets by providing
companies with the opportunity to raise capital and by giving both private and institutional
investors the opportunity to invest.
There have been three major developments that characterise the changes in the European
Exchange landscape over the past twenty years: the globalisation of financial markets, the
revolutionary developments of technology, and European regulation. A growing number of
companies and banks wish to raise capital in more than one country. Investors too are
looking at integrated or interconnected international markets in order to maximise their
return and spread their capital risk. Long term developments such as the introduction of the
euro, the spread of privatisation, the growing number of pan-European mergers and the rise
of the retail investor have encouraged closer cooperation and, in some cases, the
integration of Europe's formerly diverse and separate equity markets. At the same time,
over the past decade, every European exchange membership has undergone a major
transformation. Most have opened up to foreign-owned intermediaries. Trading is executed
electronically, often from overseas.
European securities exchanges have risen to these challenges in a number of ways. Several
exchanges increased the number of hours during which trading can take place to enhance
access. They also introduced market-making and block-trading to increase liquidity.
Additionally, order handling and execution systems were refined in order to boost
efficiency and to reduce settlement times. Most exchanges also improved information
systems to increase transparency and access. By developing new and imaginative
investment instruments investment options have been enhanced. Thus, the European
exchanges of today rightly present themselves as modern, high-tech enterprises. In several
European countries, whole securities market services groups have grown around the
traditional exchanges. With very few exceptions, the national derivatives markets are
generally found today under the same roof as the national cash markets. Some of these
groups even integrated their national clearing and settlement institutions, their IT provider,
information distribution services and others. [...]