Integration of european financial markets at the beginning of the 21st century

Author:Madalina Antoaneta Radoi
Position:Lecturer, Economic Sciences Faculty, 'Nicolae Titulescu' University, Bucharest
Pages:191-199
Madalina Antoaneta Radoi
191
LESIJ NR. XVIII, VOL. 2/2011
INTEGRATION OF EUROPEAN FINANCIAL MARKETS
AT THE BEGINNING OF THE 21ST CENTURY
Mdlina Antoaneta R;DOI*
Abstract
The latest four decades have marked by their width, speed and radicality a true “revolution”
on the financial market, a transformation and restructuring of financial services, of financial
instruments which were used, of transaction systems, but also of competitive processes. The
importance that should be given to such transformations of financial systems is given, as well, by
their impact, both at the micro- and at the macro- levels, on the economy as a whole.The evolution
of the European financial market at the beginning of the 21st century has followed the general
trend of global markets. As a main tendency of financial market restructuring at the European
level we should keep in mind the fact that there was an opening towards private financing
according to the American model, due to the necessity to attract international capital resources, a
process which is still ongoing.The integration of the European financial markets at the beginning
of the 21st century follows the general process of financial globalization which develops rapidly on
several structures of financial systems.
Keywords: financial globalization, ideal financial market, futures market and options
market, portfolio management, risk management, institutional investors, compensation facilities,
trade and communication systems.
Introduction
The integration of the European financial markets is a process preceded by restrictions of the
financial systems at the global level, including the European level. These restructurings are
connected to a larger opening of financial markets for the diversification of financial resources,
radical transformations of financial instruments – receivable and patrimonial – the revolution of
transmission systems, restructuring of trade systems, and essential changes in competitive
processes, etc. these changes contribute to the extension of competitiveness advantages.
For example, deregulation, as an element of financial globalization, is one of the key
processes of transition from the paradigm of management at demand, to the paradigm of supply
economy, representing the opening to competition in the arbitration between regulation and
competitiveness.
Starting from an ideal financial market, this paper deals with a multinational European
financial market, by integrating European capital markets and banking systems the supply and
demand on the European financial markets, as well as tendencies manifested on these markets.
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* Lecturer, Economic Sciences Faculty, “Nicolae Titulescu” University, Bucharest, radoimadalina@univnt.ro

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