In addition, we are working to advance proposals on margins for noncleared derivatives, consistent with a new global framework, and are evaluating possible measures to address financial stability risks associated with short-term wholesale funding. We will continue to monitor for emerging risks, including watching carefully to see if the regulatory reforms work as intended.
The economic liberalization that started in the early nineties facilitated the introduction of derivative products based on interest rates and foreign exchange in India. While the migration to a market-determined exchange rate regime and current account convertibility allowed increased integration between domestic and international markets, it also exposed domestic markets and the end-users to a greater degree of volatility.