I do not have a definite answer, but I agree with many experts who point out that financial innovation and globalization, enabled by advances in information technology, had a role. For example, cross-border flows of capital have increased more than threefold in the last ten years. What strikes us more is that the cross-border transfer of risks increased rapidly through derivatives transactions.
*  *  Introduction  It is a great pleasure to welcome the BIS FXWG (Foreign Exchange Working Group) and MPG (Market Participants Group) joint meeting on developing a single global code of conduct for the foreign exchange market.1 In March last year, the eight foreign exchange committees in the major financial centers gathered here in Tokyo and adopted the “Global Preamble,”2 sharing their commitment to developing and promoting clear, robust, and implementable best-practice guidance in the foreign exchange market.