Early Observations on Improving the Effectiveness of Post-crisis Regulation, Speech at the  American Bar Association Banking Law Committee Annual Meeting. January 19, 2018. 4 An important exception to this is that losses on trading book positions and counterparty exposures as a result of  the global market shock continue to be based on sensitivities generated by bank models. 5 The ClearingHouse. The ClearingHouse Offers Recommendations to Improve Stress Testing Transparency,  January 22, 2018. 6 Til Schuermann. “The Fed’s Stress Tests Add Risk to the Financial System.” Wall Street Journal. March 19,  2013. 7 W. Scott Frame, Kristopher Gerardi and Paul S. Willen. The Failure of Supervisory Stress Testing: Fannie Mae,  Freddie Mac and OFHEO, Federal Reserve Bank of Atlanta Working Paper 2015–3. March 2015. 8 Board of Governors of the Federal Reserve System. Federal Reserve Board requests comment on package of  proposals that would increase the transparency of its stress testing program, December 7, 2017. 9 See, for instance, Itay Goldstein and Haresh Sapra. “Should Banks’ Stress Test Results be Disclosed? An  Analysis of Costs and Benefits.” Foundations and Trends in Finance. Vol. 8. March 2014. 6/6  BIS central bankers' speeches
We are building a system that will be flexible to protect against the threats we understand today and the ones we will need to withstand in the future. The renewed service will provide a platform for private sector innovation and one which can respond to and shape a fast changing environment. We will harness leading edge technology to deliver this, coupled with changes to our policies to support growth and resilience. Key features will include:   The renewed service will have a flexible and modular architecture, making it easier to change components of the service or add new components. This will enable us to respond quickly to market changes and continued innovation in payment technologies both from new fintechs and established players. Ultimately, we want to future-proof RTGS to interface with firms and technology that may not exist today.   The renewed service will not be built on a Distributed Ledger Technology (DLT) but firms who use DLT will be able to connect to the service. We have completed a Proof of Concept to understand 4  All speeches are available online at www.bankofengland.co.uk/news/speeches  4  whether our renewed service could be capable of supporting settlement in systems operating on innovative payment technologies. The punchline was that it could. We continue to engage with fintech firms to maintain our understanding of technology developments.