2017 has been a year of structural and political change, leaving the European capital
markets industry with more questions than answers. At such a time of uncertainty, our
role as a pan-European trade group could not be more important, not just to present
the voice of the wholesale financial markets in Europe, but to provide a meaningful,
fact-based contribution to help shape the future of our industry.

AFME is committed to fostering deep and integrated European capital markets which
serve the needs of companies, investors and savers across Europe. In the context of the evolving relationship between the EU and UK we believe this mission is best achieved by providing a bridge between EU27 and UK policymaking. As we look towards the next twelve months, AFME will continue to perform this role, representing the industry and bringing to bear deep policy and technical expertise.

We are now present on-the-ground in London, Brussels and Frankfurt, and AFME
staff continue to make the industry voice heard through regular meetings with local
policymakers, regulators and market participants across the EU27.

As we enter the next phase of Brexit, it is critical that policymakers are well-informed
of our industry’s concerns and the potential impact their decisions could have on
the financial services sector. AFME’s fact-based contribution remains central to the
debate.

We continue to hold engagement meetings with officials and policy makers across
Europe, calling for a smooth transition to ensure European capital markets are able to
continue to function well. To support our asks, AFME has produced a portfolio of factbased reports which contribute meaningful data on the potential impact of Brexit on the wholesale banking industry, end-users and supervisors, most recently Bridging to Brexit: Insights from European SMEs, Corporates and Investors.

This year marked an important milestone as the European Commission published its
mid-term review of the Capital Markets Union (CMU) initiative. AFME has been a strong advocate of the CMU initiative, which is more important than ever to boost growth and investment and channel capital to the real economy. Going forward, the focus on strengthening supervisory powers, fintech and sustainable finance, among others, are all important CMU priorities which will ensure the project remains fit for purpose.

One of AFME’s ongoing priorities continues to be raising awareness of the role capital markets play in promoting growth. This year we produced two reports outlining how CMU can help address two key issues: the shortage of risk capital for high growth companies and the need to increase private investment in infrastructure. Addressing both of these will help ensure that Europe continues to see steady growth.

It is undoubtedly a challenging time for our industry in Europe, and AFME is dedicated to promoting the ‘E’ in AFME more so than ever.

I would like to conclude by expressing my sincere appreciation to my fellow AFME
Board members and staff. I am so grateful for all they do for the industry.

Michael Cole-Fontayn
Chairman

Association for Financial Markets in Europe
September 2017