Deutsche Börse New Year’s Reception In The Cube: Strengthen The Capital Markets – Stabilise Europe

On Monday 16 January 2017, high-ranking representatives from business, politics, academia and the media gathered at The Cube for Deutsche Börse’s traditional New Year's Reception. Around 800 guests accepted the invitation to this well-known event at the Frankfurt financial marketplace.

Dr Joachim Faber, Chairman of the Supervisory Board of Deutsche Börse AG, welcomed the guests to Deutsche Börse's corporate headquarters. In his speech, he stressed the importance of revitalising growth in global trade, which has been faltering recently. He said that the capital markets offer the middle classes in particular the chance to share in the opportunities offered by global trade. According to Dr Faber, better access to the capital markets is therefore the best response to social challenges and resistance towards more open markets. “We need a lasting and resilient European infrastructure that helps to adequately distribute the benefits of globalisation,” the Chairman of the Supervisory Board pointed out. Against the background of an ageing society where the pay-as-you-go retirement provision system reaches its limits, Dr Faber advocated an expansion of capital-based retirement provisions.

Guest speaker Laurence D. (“Larry”) Fink, Chairman and CEO of BlackRock, the world’s largest asset manager, also focused on the relationship between shared growth and security, as well as Europe's political and economic stability. In his view, the goal should be to strengthen the capital markets and retirement systems – yet he noted that Germans were overly reliant upon state pensions, whilst the potential contribution of company pensions and private retirement provisions was under-exploited. According to Larry Fink, companies small and large have an obligation to expand workplace pension plans, and to educate their employees about the financial markets. “With coordinated efforts from business and government, all nations can help contribute to a virtuous cycle, with employees both better prepared for their futures and playing a role in the capital markets that will drive growth,” he said.

Heading towards “Exchange 4.0”

Carsten Kengeter, CEO of Deutsche Börse, ventured a look ahead to the future of the exchange industry. He said that the company is working towards “Exchange 4.0” – through innovation, as well as cooperations with technology partners, with other capital markets players, with politicians and with regulators. Carsten Kengeter cited investments in fintechs, such as the acquisition of 360T, cooperation with Silicon Valley firms, or the securities settlement within the scope of TARGET2-Securities as examples. In his view, blockchain technology will trigger a true quantum leap for the exchange industry. “Taking responsibility for Exchange 4.0 also means taking responsibility for Frankfurt as a financial Marketplace,” Kengeter said. He stated that Deutsche Börse would persevere with its efforts, for the benefit of the financial centre: “Yet we will only be able to do so if we take a leading position in global competition.”

As in previous years, Deutsche Börse lived up to its reputation as a good host. It welcomed guests with a new space concept for the reception, comprising a lounge area, a large bar, and high tables, which provided the opportunity for guests to enjoy lively and informal discussions until late in the evening. A singer, accompanied by piano and bass, provided musical entertainment.