By increasing the degree of certainty that critical systems will be operational in times of disruption, the development of appropriate business-continuity plans can improve the overall efficiency of the financial system. With respect to fixed-income markets, the Bank is also playing a role in helping to develop regulations regarding transparency and alternative trading systems.
We are promoting innovations such as electronic trading systems, because they provide opportunities to reduce transactions costs and increase transparency to appropriate levels. This will increase liquidity and lead to better-functioning markets.