I  Fundamental issues in the area of regulation  Put in a nutshell, fundamental issues in the area of regulation relate to the tension between the poles of self-regulation and sovereign regulation. In other words, where are market solutions possible and where is sovereign regulation necessary? Another question is about the political level at which this fundamental decision is to be taken.
Is it the national, the  BIS Review 115/2008  1  European or the international level? This adds a further, complex dimension to the underlying tensions and strains between self-regulation and sovereign regulation. I shall return to this point in a moment. But allow me first to emphasise that, in a market-based system, approaches involving selfregulation are the obvious course to take.