The more recent reforms sought to (i) remove market segmentation by simultaneously easing access of nonresidents to domestic markets and permitting residents to access 7  offshore markets; (ii) expand the participation base by encouraging non-resident participation in financial markets and retail participation through the provision of easy access, for example through the Retail Direct and FX Retail platforms; (iii) facilitate more sophisticated users to access markets for their hedging needs and to express their views on market movements; (iv) promote innovation through the introduction of a larger suite of products which can be customised to the needs of individual market participants;9 and (v) ensure fair user conduct through protection of the retail user and a sound, receptive and a customer suitability framework.
Second, policymakers must choose between being either broad-based or targeted in their approach to systemic risk. Targeting specific types of transactions, for example, may make the policy instruments more precise and potentially more effective, but raises the risk of avoidance. Third, macroprudential policymakers must strike a balance between rules and discretion.