Nowhere is this more obvious than in the OTC derivatives market, where banks are trying to compress hundreds and thousands of lines (and over USD 700 trillion of notional value 7) of OTC derivative transactions, so as to consolidate liquid collateral for margin efficiency. Second, as jurisdictions roll out clearing and trading mandates for OTC derivatives, more transactions will be traded and cleared on regional and global platforms to reap the benefits of scale and liquidity. This will be instrumental in transforming complex webs of gross exposures into smaller sets of net exposures, reducing systemic risk and strengthening the derivatives  4  “Asset Management 2020: A Brave New World,” PwC, 2014. 5  Market capitalisation as of 31 March 2014, Relbanks. 6  “Myanmar’s Banking Sector Liberalisation: A Win-win for All,” PwC, 2014. http://pwc.blogs.com/growth_markets/2014/10/myanmars-banking-sector-liberalisation-a-win-win-for-all.html  7  BIS derivatives statistics, September 2014. http://www.bis.org/statistics/dt1920a.pdf  2  BIS central bankers’ speeches  market. These pressures will naturally drive more aggregation across geographies and asset classes, and place the issue of market integration squarely on the agenda. Global reforms, if they are implemented consistently, can also support financial integration by making it less burdensome for financial institutions to comply with regulations in different jurisdictions and for regulators to mutually recognise and defer to each other where appropriate. III. Market integration is happening at two levels: among jurisdictions and among participants  11. Over the last three years, market integration has been taking place in Asian financial markets.
In the long term, however, the current low level of interest rates is not compatible with price stability. If the economy performs as expected, the National Bank will further pursue the gradual adjustment of its monetary policy that has already been initiated. BIS Review 36/2006  1