The deadline agreed by the European Council for implementing the entire Plan is 2005, with an earlier deadline of 2003 for the securities and risk capital markets. Considerable progress has been made in recent attempts to implement the Lamfalussy recommendations in the field of security market regulation.
Fourth, as it is being widely recognised that analysis through a micro-prudential lens makes policymakers prone to ignoring the implications for systemic stability of financial market imperfections, including those stemming from information frictions, moral hazard implicit in too-big-to-fail firms outside regulatory purview and the negative externalities when firms too-interconnected-to-fail failed.