Dr. Matthias Voelkel’s Post

Back in Brussels Looking back: Returning to Brussels brings back memories of my time at the European Parliament. Fond and fun memories, actually. Today my role and focus are apparently different – it’s about establishing Boerse Stuttgart Group as the go-to infrastructure partner for banks, brokers, and asset managers across Europe. Whether in traditional capital markets or crypto, our mission is clear: providing our clients with secure and seamless access to financial markets. So, Brussels was about catching up with current and potential clients – always the most rewarding interactions. And then there was also the board meeting of the Deutsches Aktieninstitut (DAI). We engaged in lively discussions on enhancing the EU’s competitiveness, with a focus on capital markets driving growth. The #Letta and #Draghi reports were centre stage, both stressing the urgency of creating the Capital Markets Union – now appropriately termed the Savings & Investment Union. Our group stands firmly behind these initiatives and is actively shaping Europe’s financial future. An integral part of our board meeting was the 4th Franco-German Corporate Executives and Institutional Investors’ Forum. A platform for thought leaders from both sides of the Rhine to discuss how Franco-German cooperation can fuel European innovation and growth. My highlight was François Villeroy de Galhau’s personal and impactful speech, which underscored a key message: Europe's strength lies in the strength of its Franco-German alliance. A special thanks to Henriette Peucker and the entire DAI team for their outstanding organization and moderation, as well as to Melanie Kreis our DAI President, for her exemplary leadership.

Center Stage for AI and Blockchain    This year’s Boerse Stuttgart Group’s Annual Reception brought together over 250 decision-makers from business and politics. Our keynote speaker was Jonas Andrulis, who shared valuable insights into AI.  This created the ideal setting for an announcement: Boerse Stuttgart is partnering with Aleph Alpha. Together, we share a commitment to innovation in Europe; particularly when it comes to critical infrastructure.    This partnership will enable Boerse Stuttgart Group and Aleph Alpha to capture opportunities head-on. Together, we will navigate and tackle challenges in the field of regulatory requirements – the bread and butter for financial institutions. So, AI was on top of mind of everybody at the reception. But not only AI. Also blockchain and cloud – the other two of the “ABC technologies“, which are propelling the next S-curve of digital transformation. Speaking of blockchain: Europe is well-positioned here, and Boerse Stuttgart Group is leading the way in ensuring this momentum continues.  A special thanks to everyone who made our annual reception a success, and to Jürgen Steffan for his great opening remarks.   

Raising the Bar It is inspirational when the leaders from the seven hubs of Boerse Stuttgart Group meet to jointly prepare the next steps of our European growth journey. Our group's vision is "European investors deserve better". It entails a future of growth and opportunity. For this we need to think and act like one European group. By expanding our European footprint – establishing new hubs and bringing in more business from key markets – we have been solidifying our position as Europe's sixth-largest exchange group. European growth does not happen automatically; formulating a vision and establishing new hubs alone will not do the trick. We will only continue to be successful if we keep raising the bar as an organisation. This is about mindset and the right values. Ours are: European ambition, performance orientation, entrepreneurship, and can-do-mentality. What a strong prelude to jointly celebrating our successes at our big group party last Friday with hundreds of colleagues from Stuttgart, Berlin, Frankfurt, Ljubljana, Milan, Stockholm, and Zurich on site!

A big step towards crypto mass adoption in Europe Boerse Stuttgart Digital is the crypto infrastructure partner of DZ BANK AG and the German cooperative banking group – one of Europe’s largest banking groups. Leveraging our fully regulated institutional crypto infrastructure solutions for trading and custody, 700 cooperative banks will be enabled to offer cryptocurrencies to their retail customers. The implementation work has started, and the first banks are to be connected as early as this year. We are proud to stand as pioneers, contributing to the first offering of cryptocurrency access to retail customers by established financial institutions in Europe on such a large scale. Collaborating with one of Europe’s largest banking groups highlights our ambition to be the partner of choice for all European banks and brokers that want to provide their customers with secure access to digital assets - from bitcoin to tokenized securities.   And the partnership is of course a big step towards crypto mass adoption in Europe, as recent coverage of international media underpins.

#Eurofi in Budapest: The Draghi Report's Call to Action    Once again, the Eurofi Financial Forum gathered policymakers, regulators, and industry leaders to address the most pressing challenges and identify the biggest opportunities for Europe's financial markets. As Europe's sixth-largest exchange group, Boerse Stuttgart Group is an active contributor to these discussions. Driving momentum: The topic of the hour was the #Draghi report on European competitiveness. It highlights Europe's delayed digitalization and underperformance in innovation and productivity increase, leading to sluggish growth. And Europe needs growth.  With the new EU Commission in place, there is renewed urgency to address structural issues that have long been on the agenda. When it comes to financial markets, we need to make the Capital Markets Union a reality. How? Of course, we are talking about finally harmonising regulation across Europe. This is good and important, but not enough. Regulatory harmonisation will have only limited effects if Europe’s capital markets infrastructure remains fragmented along national borders. This is particularly true for post-trade infrastructure, as Draghi highlighted. A truly European digital infrastructure is the solution, and the European Central Bank’s blockchain trials, in which we participate, can pave the way. We also need to boost participation of retail investors in Europe’s capital markets. This is about promoting private pension plans in securities and developing capital market-oriented second-pillar options. Successful models like the Swedish one should serve as an inspiration.    Eurofi’s discussions set a clear direction: Strengthen Europe's capital markets - to strengthen Europe's financial autonomy, increase its competitiveness and fuel its growth. Now is the time to move from talk to action. Verena Ross Martin Wagener Michael Kirchmayer

Financial Infrastructure of Tomorrow As we navigate through 2024, the Capital Markets Union (CMU) is gaining political momentum. However, its potential will be limited if the underlying financial infrastructures remain confined within national boundaries. The path forward: What we need is a genuinely European financial infrastructure – and the technology to make this a reality is already within our grasp: blockchain. Blockchain can enable a fully integrated, cross-border platform to boost Europe's capital market. That is why we are actively involved in shaping the financial infrastructure of the future. Milestones along the way: The Europäische Zentralbank has initiated tests within an “open architecture” framework – and we are right in the thick of it. Collaborating with prominent partners, such as KfW Treasury – one of the world’s leading development banks – we are leading the charge when it comes to tokenized securities. And with BX Digital, we have already built our own exchange for digital assets and have applied for a license with Finma in Switzerland. A glimpse into 2034 – our strategy is grounded in two beliefs: 1. The future of financial services is digital – and the basis is financial infrastructure powered by blockchain technology. 2. The future of financial services is European – but we can only unlock the full potential of the Capital Market Union if we break through national financial infrastructure silos.

Growing Together Every day, my colleagues at Boerse Stuttgart Group deliver exceptional work. Reaching milestone after milestone on our transformation roadmap is a reflection of our joint high ambition. Keeping in touch: Regular personal catch-ups with teams across our group are vital for me. These sessions are more than just meetings – they are opportunities to connect and exchange ideas. And they allow me to gain a better understanding of what is really going on in the organization – unfiltered insights about the good, the bad (less and less), and the ugly (none). Our core values: Coming together also underscores the importance of embodying our core values: European ambition, entrepreneurial spirit, performance orientation, and can-do mentality. I am incredibly proud of the dedication my more than 700 colleagues keep demonstrating daily. Their dedication pushes us to grow not only as individuals but also as one strong (Boerse Stuttgart) Group.

Boosting Scandinavian SME Growth Nordic Growth Market (NGM), Boerse Stuttgart Group's Scandinavian exchange, has been crafting a remarkable success story over recent years. Not slowing down: Over the course of the last few months, NGM has secured 15 new listings: Scandinavian SMEs across innovative sectors such as IT, fintech, biotechnology, and sustainable energy. Benchmark for Europe: Over 60% of all SME trading in Europe occurs in Sweden, making it a vital hub for entrepreneurs and growth companies. Sweden and NGM exemplify how a powerful ecosystem can facilitate SME capital-raising – providing a model for other European markets to emulate in order to grow. And Europe needs growth!

Opening Our Frankfurt Office in Style A couple of months ago, we tested the waters (including the altitude of the 31st floor) of Boerse Stuttgart Group’s new office in Frankfurt with a top management workshop ... and teased an opening party. Yesterday, we delivered. Place to Be: Frankfurt, one of the leading financial centres in the EU, was recently ranked 13th in the Global Financial Centres Index. Home to approximately 450 financial service providers, it offers unparalleled opportunities for growth and connectivity within the European market. So its strategic importance cannot be overstated. All the more so since there is no city in Europe where Boerse Stuttgart Group has more clients. A number of the leading banks, brokers, and issuers we have proudly been serving for decades have their headquarters here. Cheers to Growth: So, our opening party wasn’t just about a new location; it was a celebration of our commitment to our clients. And of our ambition to continue on our growth trajectory. Expanding into Frankfurt, alongside our hubs in Stuttgart, Berlin, Ljubljana, Milan, Stockholm, and Zurich, aligns with our group's vision: “European investors deserve better.”

Spotlight on Financial Industry (and a Bit of Soccer Nostalgia) What does it take to build a strong financial industry? A financial industry which effectively fulfils its noble purposes: Supporting the growth of the economy and the creation of personal wealth. A lively, open-minded discussion on this question at the Frankfurt EURO FINANCE Summit; alongside Sara Hennicken, Ramin Mirza, Tobias (Toby) Vogel, and Eckart Windhagen on the panel on “The significance of a strong financial industry for the German economy”; moderated by Sarah Schmidtke. Taking an inventory: Although I have faith in the core resilience of Europe and Germany, it is clear that we must significantly elevate our efforts. Economy-wise we keep falling behind the USA – big time. And this is not a cyclical phenomenon, but a structural trend. To reverse this trend we need to raise our ambition level (if you do not really mind being mediocre you will never achieve high performance), challenge many of Europe’s prevalent political narratives and take a number of determined big measures. A strong financial industry is a necessary condition, and the capital market plays a particularly important role. Facts are facts: Germany's market capitalization stands at 45% of its GDP, compared to Sweden's 155% and the USA's 180%. Furthermore, it is worth noting the trend of individual US companies being more valuable than the entire DAX index. For instance, Nvidia's market capitalization is 3 trillion USD, whereas the total market capitalization of the DAX 40 is 1.7 trillion USD. The solution for the quest for a strong capital market is threefold: A true single market boosting competition, greater participation by retail investors (we urgently need the “Wertpapierrente” in Germany), and a technological leap with blockchain. Blockchain can create a digital, truly European capital market infrastructure, replacing the historically fragmented national infrastructures; especially when it comes to post-trade. While the capital market is an emotional topic for some people, soccer is one for many more. The picture on the bottom right shows me with Pierre Littbarski, one of Germany’s soccer heroes. Litti won the World Cup in 1990. In 1990 the German GDP per capita was roughly as high as the USA's. Now the USA's is 65%(!) higher than Germany's … crass – to put it mildly.