Update from Zurich
The IPO Summit was a resounding success. There is a clear and emerging movement in Europe to improve IPO markets - especially for SMEs (Small- and Medium-sized Enterprises). Europe, according to the European Commission, is staring at a $1 trillion investment funding gap over the next twenty years. This is due, in large part, to the systematic deleveraging of the banking system. As a result, market participants seemed to key into areas of focus that included:
* IPO and follow-on equity markets (and the ecosystem of smaller investment banks required to support the companies and investors accessing these markets)
The European Commission has read and been influenced by our thought leadership work on stock market structure. Martin Merlin, Head of Unit, Financial Services Policy, Relations with the Council, at the EC, cited one of our prior studies and made the following points:
* "The European Commission has decided to make access to capital to support economic growth one of the primary areas of focus."
* "While there will be a new President of the European Commission this Fall, making capital markets function better for the EU will certainly be a central focus over the next 5 years."
I was extremely gratified to hear him say, "We read David's work with interest and it will surely inspire us going forward."
Founder & CEO