But others argue that it could accelerate further, as technology costs continue to fall, helping market users seek out more obscure venues where they might have an edge.5 Whatever happens, for today’s market participants, fragmentation is a fact. And that means – just like Lola – they can experience a markedly broad range of outcomes. That has important implications for all three of the characteristics – informational efficiency, resilience and fairness – I talked about a moment ago. Central banks are watching those issues closely.6 But today I want to focus on the effectiveness of the FX market in delivering the services needed by its users – using three storylines of my own. Our first fictional FX market user has never had it so good. With the resources and knowledge to connect to dozens of competing platforms and liquidity providers, analyse rich data sets in real time to work out the best way to deal, and using an array of algorithms (perhaps even arranged in an ‘algorithm wheel’) to execute at speed with minimal price impact, she gets an exceptional service from FX markets. I say ‘she’ quite deliberately here too – because, as I discussed back in June in a different speech,7 technological innovation means embracing diversity – of people, ideas, and working practices – is no longer a choice, it’s a business necessity.
In addition, the IoD provided input into the Corporate Governance Model Board Charter which has been developed with technical expertise from MTN Special Engagements led by Ms Mary Ncube. The outcome of this work is what will be presented to you today. The presentation will focus on the significant position that Boards of Directors occupy in the whole Corporate Governance process and how their role, functions and operations may be reduced into a charter that might guide their work., including;   Powers, functions and delegations of the board;    Board composition and mix – and the challenge in state-owned institutions;    The Chairperson and CEO – and whether they should be different persons and why;    Rights and duties of Directors – and that ultimately the buck stops here;    The role of the Board Secretary – and how they can help drive the right agenda;    Disclosure of conflict of interest and the challenge of ethical standards;    Members’ remuneration and expenses – and what is morally right?   Corporate social responsibility; and,    Evaluation of the Board’s performance, etc. But why do we need a Board Charter one may be tempted to ask?