This crisis did not begin with depositor runs on banks, but with investor runs on firms that financed their holdings of securities in the wholesale money markets. An effective agenda for containing systemic risk thus requires adjustments by all our financial regulatory agencies under existing authorities.
The focus for the next period will be on completing projects such as the pricing of the floating rate notes (FRNs) in the secondary market, gaining a better understanding of high-frequency trading in the foreign exchange market and developments in over-the-counter (OTC) market in foreign exchange derivatives and reviewing the calculation reference rates in the money-market. 5.