Regulators also need more and better data on the links among institutions through third-party sponsors, liquidity providers, creditsupport providers, and market makers. Knowledge of such network linkages is a necessary first step to improve analysis of how shocks to institutions and markets can propagate through the financial system.
Let me focus on three: First, it is important to establish well-defined rules, policies and processes to set the stage for areas of cooperation and areas of competition. This will facilitate the entry of new players, create a level playing field and provide the framework for inter-operability.