Imposing losses on creditors of troubled, systemically critical firms would help address the too-big-to-fail problem by restoring market discipline and leveling the playing field for smaller firms, while minimizing the disruptive effects of a failure on the financial system and the economy. Third, our regulatory structure requires a better mechanism for monitoring and addressing emerging risks to the financial system as a whole.
There are still a number of issues to be resolved but I am confident that we will succeed by the end of this year in order to provide assurance to CSDs in the contractual arrangement to be prepared next year. BIS Review 91/2009  1  Much has been achieved, much remains to be done.