We are also looking at ways to strengthen the infrastructure of financial markets, including markets for secured financing and over-the-counter derivatives markets. In terms of reducing the risk of money market disruptions, steps to strengthen market infrastructure complement supervisory efforts to strengthen the management of liquidity risk at individual firms.
Conclusion As I noted at the outset, one important lesson from recent developments is that we need to devote greater attention to money markets. Disruptions to those critical markets have the potential to significantly harm the financial system and the real economy. Thus, this conference, which brings together market participants, scholars, and policymakers, is quite timely.