It does so by institutionalizing better quality capital, introducing loss-absorbency parameters for capitalcompliant instruments, improving market transparency and setting prescriptive caps/floors for prudential purposes. On the other hand, new standards completely redefine the risk governance for Financial Market Infrastructures or FMI. This is done with an increased appreciation for contagion risk and the need for stronger IT security protocols.
For UTI is a critical data element in making the global OTC derivatives markets transparent. For this reason it is vital that you, the regulators and private sector representatives gathered in this room, are going to pay particular attention today to the governance aspects of the UTI. As you will no doubt be aware, work on the governance of the UTI is already underway.