In addition, the extraordinarily rapid growth of credit derivatives markets in the past few years has occurred against the backdrop of relatively benign macroeconomic performance – good global growth, low inflation, historically high corporate profits and low business failures, and reasonably predictable monetary policies.
Safeguarding financial stability has therefore rightly been a top priority on the policy agenda. The G20 agenda and the summit in Seoul in November testify to the global dimension of the task of financial market regulation. A number of crucial reform measures designed to secure financial stability have already been approved or at least got underway in the past year.