Staying Connected  Speech given by Mark Carney, Governor of the Bank of England  Markets Forum 2018, Bloomberg Headquarters Thursday 24 May 2018  I am grateful to Alice Carr, Ankita Mehta and Tim Taylor for their assistance in preparing these remarks. 1  All speeches are available online at www.bankofengland.co.uk/speeches  Thank you Peter (Grauer) for that introduction and for hosting the inaugural Markets Forum. This incredible Fosters + Partners building connects the Roman Temple of Mithras in its foundations to the glories of St. Paul’s in its vista, while pushing the boundaries of sustainable office design. It is a node in a global network that spins data, information, and capital instantaneously across the planet. We have been reminded in recent years that networks have the power to divide, as well as connect. And we are here today to continue the process of reconnecting financial markets to the real economy. Three years ago, in the wake of a series of scandals ranging from mis-selling to manipulation, and following a period when markets had become ever more connected to each other but disconnected from those they serve, the Bank of England, the Financial Conduct Authority and HM Treasury published the recommendations of the Fair and Effective Markets Review (FEMR). 1  FEMR was ground-breaking and ambitious in its recommendations to restore trust in the markets on which we all depend. At today’s event, policymakers and market participants will take stock of the progress in building fair and effective markets.
Over time the private sector will develop a wider range of products referencing SONIA. Futures contracts have already been created. We can expect Floating Rate Notes and loans referencing SONIA to follow. The end point should be an ecosystem for interest rate markets which has an altogether healthier foundation than at present. Developing the infrastructure around the near risk-free benchmarks globally, and assisting market participants in dealing with legacy Libor portfolios, is a significant opportunity for innovation. Firms here in London are well placed to take advantage. As mentioned, international authorities are working closely together, and I know Bill Dudley is going to pick up the baton and talk more about the transition to risk-free rates from a US perspective. It is an immense pleasure to introduce Bill. It is an honour that he is here at this Markets Forum to give his last keynote speech as President of the New York Federal Reserve. And it is appropriate given his deep commitment to fighting misconduct and improving standards of behaviour in the institutions we regulate and supervise. Bill had the wisdom to appreciate quickly how cultural and ethical issues lay at the heart of the global financial crisis, and he has been a consistent and strong voice in arguing for what needs to be done to improve individual behaviour, firm culture, and industry ethics. On behalf everyone, I would like to thank you Bill for your many, invaluable contributions throughout this exceptional period for financial markets and the global economy.