This has grown from around $ billion in December 2001 to over $ billion in December 2015 (according to IMF statistics). And this growth has been positive each year except for a decline during the last global financial crisis. In the same period, total portfolio investment assets held by investors from the Asia and Pacific region in these same European markets have grown from $ billion to over $ billion.3 Therefore, developments in each of our jurisdiction and region can have a significant spill-over impact on the other. Financial regulators form one important stakeholder group and platforms for dialogue and sharing such as in this forum will be helpful in promoting greater mutual understanding and cooperation. Importance of regulatory cooperation I am sure that everyone in this room will agree on the importance of regulatory exchanges and co-operation. Asia-Pacific jurisdictions including Singapore play host to many European financial institutions which are active and significant participants in our respective financial markets. Such crossborder and cross-region participation have benefitted both regions. For example, the recognition of LCH.Clearnet and the Singapore Exchange Derivatives Clearing by MAS and EU authorities, respectively, provide local market participants and European Financial Institutions a choice of where to clear their transactions. More importantly, the recognition will allow market participants to comply with their respective jurisdiction’s central clearing requirements when they are effected, thus avoiding duplicating or conflicting requirements.
3/4  BIS central bankers' speeches  It has been said that regulators are pessimists in our DNA and always inclined to worry about things going wrong – and certainly, we cannot ignore the possibility of the failure of key FMIs no matter how remote, and this may occur in FMIs overseas. I started my speech this morning, noting the increasing connectedness between markets. This is true in the ‘life’ of a CCP - and can be true in its ‘death’ too. The failure of an internationally active CCP, that provides critical services in multiple jurisdictions, will have significant cross-border impact. When a CCP fails, its members are inevitably affected. Such members are likely to also have relationships with other financial institutions, or may trade and clear on other trading venues and CCPs. Through these network of interdependencies, the default of a CCP can trigger destabilising effects not only in the home market it serves directly, but outside of it. It is therefore important for authorities of jurisdictions that may be affected by a CCP’s failure to participate in that CCP’s resolution planning. Similar to the establishment of Supervisory Colleges to support ongoing supervisory co-operation, setting up Crisis Management Groups (CMG) for CCPs will allow the cross-border impact to be considered in resolution planning. In a failure situation, when resolution actions are time-sensitive, it may be necessary to limit the size of a CMG to enable efficient and effective discussions. But in normal times, resolution planning can benefit from a broader participation of relevant authorities.