MAS is fully engaged in the OTC work of the FSB, the International Organisation of Securities Commissions, and the Committee on Payment Systems and Settlements. We will fully implement the OTC derivatives reform agenda. There must be consistency in implementation across jurisdictions, but there cannot be precise equivalence. The OTC derivatives landscape in Asia and Singapore differs considerably from that in the US and Europe. We have smaller markets and less complex derivative instruments. We have to consider how to implement the G20 reforms effectively while taking into account enforcement issues and the characteristics of our markets. MAS will consult the industry on its proposals for OTC derivatives market reforms by the end of this year. We aim to meet the G20 target to implement the reforms by end-2012. 8  BIS central bankers’ speeches  Conclusion – shared responsibility Let me conclude. In regulating capital markets, we are not dealing with a particular industry or a particular type of institution. We are trying to create the conditions within what is essentially an ecosystem, so that its risks are managed and its economic benefits sustained. But these benefits cannot be achieved by regulation alone. As Winston Churchill puts it, “If you have ten thousand regulations you destroy all respect for the law”. There is a limit to how far regulation can go without undermining compliance, not to mention efficiency and innovation. All components of the capital market ecosystem must play their part. A well-functioning capital market is a shared responsibility.

The present lowincome countries, when they have to struggle in this unsympathetic environment, need more understanding; greater allocations for funding and investment; increased direct aid flows; and tangible support and direct concessions to recognize satisfactory “compliance”. At this stage, I would like to acknowledge a step in the right direction that has been followed by some advanced countries through certain targeted schemes, such as the GSP+ scheme, which provides some welcome relief to low-income countries. Unfortunately however, even such concessions are often coupled with stringent criteria such as Rules of Origin which again adds to the ever growing list of “do’s and don’ts”, which list must be quite a nightmare for those who have to keep track of these! Of course all this has served to create a new breed of corporate executives titled, “Compliance Officers” (CO’s), who may at this rate, soon end up becoming even more important than CEO’s!! Your Excellencies, Honorable Ministers, Distinguished Guests, The Principle in relation to addressing income and wealth disparity among nations is equally applicable to societies within nations as well. Towards that end, I am pleased to announce to this distinguished audience that Sri Lanka has already developed a comprehensive policy framework “Mahinda Chintana”, based on the election manifesto submitted by President Mahinda Rajapaksa at the last Presidential Elections which addresses this issue comprehensively. This policy framework provides a sustainable development strategy designed to address growth and livelihood issues, while covering the income – disparity issue that prevails in our own country.