(iii)  The risk characteristics of financial markets can be inferred from mathematical analysis, delivering robust quantitative measures of trading risk. (iv)  Market discipline can be used as an effective tool in constraining harmful risk taking. (v)  Financial innovation can be assumed to be beneficial since market competition would winnow out any innovations which did not deliver value added.
These remarks represent my  own views, which do not necessarily represent those of the Federal Reserve Board or the Federal Open Market Committee. 2 A. Dumont, D. Davis, J. Wascalus, T. Cheeks Wilson, J. Barham, and D. Tropp.