5 These types of approaches can bring a wide array of  4  Some examples of best practices in these sectors include: the National Education Association, which develops pedagogical standards based on its research; the Best Manufacturing Practices Center of Excellence, which helps businesses identify, research, and promote exceptional manufacturing practices, methods, and procedures; and the Food and Agriculture Organization of the United Nations, which develops and shares “good agriculture practices” for a range of commodities. 5  During the development of the first phase of the BIS FX Global Code, a large number of detailed comments and useful suggestions were received from market participants that were integral to the drafting process. In April 2015, the TMPG solicited comments on its proposed best practice updates related to automated trading  2  BIS central bankers’ speeches  diverse perspectives to bear on the design of best practices, helping to ensure the best practices developed are more effective. Central banks’ role in supporting best practices Central banks have an interest in ensuring well-functioning markets – as market participants and for efficient transmission of monetary policy. We also have a stake in enhancing the strength and stability of the financial system as a whole. Moreover, central banks can play an important role in the creation of effective best practices by serving as a convening body for market participants, by signaling the importance of best practice efforts to the market, and by encouraging the inclusion of a diverse set of market segments in the development process.

At the same time, we know that the implementation phase of the new banking regulations will be lengthy. Consequently, there is reason for Sweden both to proceed more rapidly than planned and to introduce stricter regulations than required by Basel III. The Riksbank’s work with financial stability Perhaps the most important lesson of the financial crisis is that we must take a broader approach to understanding and analysing systemic risks. Even if, before the crisis, we and other central banks pointed out individual factors as possible threats to financial stability, nobody really succeeded in predicting the situation that then arose. The traditional approach of analysing institutions, markets and infrastructure separately was not sufficient. During the  7  See the Riksbank’s report to the Riksdag 2009/10 RB:4 “Report on certain areas that require investigation as a result of the financial crisis”, www.riksbank.se. See also Economic commentaries no. 1, 2010, www.riksbank.se. 8  BIS central bankers’ speeches  crisis, problems in individual institutions and markets rapidly spread and had far-reaching consequences for completely different markets in other parts of the world. The financial crisis also revealed the strong link between the Riksbank’s two main assignments – monetary policy and financial stability. Without stability in the financial system, it is difficult to conduct monetary policy, at the same time as price stability promotes financial stability. Normally, we use different types of measure for each of these two tasks. However, during the crisis, we needed to use both types of measure.