Q&A Document: Securing joined-up markets in a fractured world – Insights from our CEO's Editorials

Q&A

What is Stephan Leithner, CEO of Deutsche Börse Group’s, assessment of the impact of geopolitics on financial markets?

Stephan Leithner, CEO of Deutsche Börse Group, assesses that geopolitical tensions are causing a structural fragmentation of the global financial system and bringing the theme of strategic autonomy to the forefront. He observes that while these dynamics create short-term volatility and unprecedented trading volumes, particularly in derivatives and energy, they also highlight the long-term strategic need for regions like Europe to develop more self-sufficient capital markets. He notes that despite the turbulence, the underlying market infrastructure has performed exceptionally well.

What is Deutsche Börse Group’s position on European strategic autonomy?

Deutsche Börse Group supports the push for greater European strategic autonomy, viewing it as a necessary response to geopolitical fragmentation. The Group believes that strengthening Europe's own capital market is essential for this autonomy. This involves transforming the current Capital Markets Union initiative into a powerful engine for growth by mobilising the continent's domestic savings, consolidating its fragmented liquidity, and building the market on a foundation of innovative digital technology.

Why does Stephan Leithner, CEO of Deutsche Börse Group, advocate for pension reform in Europe?

Stephan Leithner, CEO of Deutsche Börse Group, advocates for pension reform because he sees it as the foundational step toward achieving European capital market autonomy. He points out that an estimated 33 trillion euros in European savings are dormant in bank accounts. Mobilising this capital for productive investment is critical. He believes that reforms must happen at the national level, citing Sweden as a model, and that corporates also have a key responsibility to expand employee access to corporate pension schemes.

What is Deutsche Börse Group’s view on market fragmentation in Europe?

Deutsche Börse Group views the fragmentation of European capital markets as a strategic vulnerability. The existence of 500 different trading venues, many of which are non-transparent dark pools, scatters liquidity and makes markets inefficient. This contrasts sharply with the US, where over 50 percent of trading occurs on transparent markets, compared to less than 30 percent in Europe. Deutsche Börse Group advocates for regulatory changes, including to MiFID and MiFIR, to reverse this trend and consolidate liquidity onto transparent reference markets.

How does Stephan Leithner, CEO of Deutsche Börse Group, see the role of technology in building a stronger European capital market?

Stephan Leithner, CEO of Deutsche Börse Group, believes Europe must lead with technology to build an autonomous and competitive capital market. Rather than rebuilding old systems, he argues Europe should leverage digital frameworks from the start. This includes embracing innovations like tokenization to create more efficient, cheaper, and safer markets through automation. He stresses the importance of ensuring these new technologies are fully integrated with existing systems and governed by the principle of "same risk, same regulation" to maintain market stability.

What is Deutsche Börse Group's strategy regarding tokenization and digital assets?

Deutsche Börse Group's strategy is to invest heavily in building a truly digital securities framework that enables the tokenization of real assets, not just synthetic "mirror images." The Group's focus is on ensuring total interconnectivity between new digital platforms and the traditional market infrastructure. The goal is to harness the efficiency and safety benefits of tokenization while upholding robust regulatory standards. This approach aims to provide standardised data formats and processing routines that eliminate inefficiencies, reduce costs, and enhance security through automation.

How has Deutsche Börse Group’s infrastructure performed during recent market volatility?

Deutsche Börse Group’s infrastructure has proven to be exceptionally resilient during recent periods of geopolitical tension and market volatility. Despite unprecedented trading volumes, the systems have operated without any glitches, ensuring continuous liquidity. This stability is attributed to proactive and significant upgrades to the Group's technology platforms, which have increased capacity and the ability to react quickly to changing market conditions.

What specific actions does Deutsche Börse Group believe are necessary for the Savings and Investment Union to succeed?

Deutsche Börse Group believes that for the Savings and Investment Union to succeed, three core actions are necessary. First, Europe must mobilise its domestic capital through national pension reforms and expanded corporate pension schemes. Second, it must tackle market fragmentation by reforming regulations to consolidate liquidity onto transparent trading venues. Third, it must build its future market on a foundation of innovative technology, particularly through the safe and regulated adoption of tokenization and digital assets.