4  Including from a new independent evaluation office that reports directly to the non-executive Chairman. 6  BIS central bankers’ speeches  market participants take liquidity for granted and crowd into trades in anticipation of central bank action. The Bank is keenly alert to such risks. The FPC and the FSB are currently analysing these issues and welcome perspectives on whether the market, regulation or both should adjust for the good of the system. Conclusion With the main building blocks of reform in place, now is the time to take stock. It’s vital that we – public authorities and private market participants – work together to reverse the tide of ethical drift. This cannot be a one-off exercise. We need continuous engagement so that market infrastructure keeps pace with market innovation. That’s why the Bank is announcing that it will hold an Open Forum this Autumn which will bring together all stakeholders in FICC markets. Our goal is to discuss the prospects for market functioning, where regulations might overlap or conflict, and whether enough has been done to build the real markets the UK deserves. To prompt an open discussion, we are publishing a detailed paper which reviews these issues and draws out such questions. 5 Everyone has an interest in the future of financial markets, so I would strongly encourage you to engage with our Open Forum process online and at the conference itself. An Open and Accountable Bank welcomes your input.

Work in support of this collective interest proceeds across multiple fronts, including efforts to enhance end-to-end understanding of the links and relationships within a network; initiatives to enhance assurance that external endpoints are operating in adherence with an operator’s security requirements; and the development of centralized information services and application tools to enhance a participant’s management of fraud risk. Examples of these services and tools might include features that restrict transfers beyond a maximum dollar threshold, or to foreign beneficiaries, or outside of specified hours. Historically, and understandably, market infrastructures have operated on the presumption that endpoint security is principally the responsibility of the endpoint, and infrastructure security is principally the responsibility of the operator. Increasingly, reflecting the elevated cyber threat landscape, this distinction is not so clear, especially as endpoint security breaches can potentially have implications for public confidence in the network as a whole, even in circumstances when the operator’s infrastructure, applications, and security perimeter have not been compromised. Arguably, the collective industry focus on resiliency and security represents the challenge of our generation, with direct implications not merely for the functioning of financial markets but, even more fundamentally, for the commercial and economic activity they support. At the same time, and notwithstanding their consuming focus, security and resiliency do not represent ends, but means to an end. I’d therefore like to spend the balance of my valuable time with you reviewing a series of initiatives we are undertaking to enhance the value proposition of the Federal Reserve’s wholesale service suite.