The regulation of financial markets in key developed markets was reinterpreted as being limited to regulation of the conduct of business aspect on exchange-traded markets, under the presumption that the risks in OTC derivative markets would best be addressed through entity regulation.
Most important, however, as I discussed in the earlier speech, under Chairman Volcker and Chairman 15 Greenspan, the Fed has moved gradually toward a policy framework of constrained discretion. In  10  King (1997) appears to be the source of the phrase.