However, in the absence of convergence of such market-based principles, the regulator might lay down guiding principles in order to provide incentives rather than imposing prescriptive and detailed rules But at this stage we need to develop a strategic view on how progress can be made on a cross-border level to reconcile market actors’ and regulators’ objectives.
Much progress has already been made in this respect. Instead of analysing the details, I would rather give some general remarks as regards the future shape of regulation. The first is, we need more transparency concerning unregulated business areas and markets, including hedge funds, OTC traded derivatives or off-balance-sheet vehicles. Gaps on the world map of regulation should be filled.