The strong expansion and increasing complexity of the financial markets and banking organisations since the Basel I framework was drawn up have made it necessary to formulate a more sophisticated framework. The Basel Committee therefore took on the drafting of new international standards, and the first proposal was put forward in 1999. This work has proved to be more complex than expected.
A conceptual framework for the organization of markets In the simplified world of an introductory economics class, a market brings together the potential buyers and sellers of a product to negotiate prices and quantities. In this paradigm, the invisible hand of the market matches all willing buyers and sellers at a single, marketclearing price. Transactions occur instantaneously and costlessly.