This measure would strengthen the OTC interest rate derivatives market, and provide greater transparency as need through adequate reporting requirements. While everywhere in the world, most trading is in the OTC segment, there is no reason why we cannot innovate and have electronic based, order matched trading to have a wider reach and also thereby enhance liquidity in the market.
Work is now afoot to provide for an exchange traded system for corporate bonds. As we make arrangements for the operation of better markets for interest rate discovery, trading and hedging instruments, I would like to stress the need and importance of sound and adequate risk management practices by market participants in the derivatives market.