For instance, shareholding is more widespread among Swedish households and many of the major "Swedish" multinationals – in which Swedes have invested a substantial part of their shareholdings – are very dependent, directly or indirectly, on developments in the USA. Developments in the Swedish economy in recent years have shown many similarities to developments in the USA. Rapidly rising share prices, a strong GDP growth driven by both investment and consumption and an increase in indebtedness is a description that fits both the Swedish and American economies in recent years. However, the increase in economic activity began later in Sweden and has not really had the same speed as that in the USA. Moreover, the rise in Sweden was preceded by a period where adjustments following the crisis at the beginning of the 1990s had forced down investment and consumption considerably and where both the household and corporate sectors had reduced their level of indebtedness. Saving in both of these sectors was therefore at a high level and indebtedness fairly low when growth in the Swedish economy picked up. Now that economic activity is slowing down, the private sector's indebtedness is not particularly high, from a historical perspective. Furthermore, the lower interest rates will mean that interest expenditure comprises a much smaller burden for borrowers now than previously. Although the surplus in saving in the private sector has declined gradually in recent years, it only became a slight deficit towards the end of last year.

But I do want to remind ourselves to stay vigilant and ensure that implementation is seen through, as this work has not yet been completed. For example, initial margin requirements on non-cleared derivatives, which guard against the overuse of embedded leverage in derivatives, are still being phased-in in a number of jurisdictions including Hong Kong. At the same time, while derivative transactions that are intended to be cleared has increased five-fold in the past four years in Hong Kong, according to data from our Trade Repository, there is more room for further standardisation. Finally, solutions such as deference mechanisms, which helps eliminate cross-jurisdictional regulatory arbitrage, are still works-in-progress between the HKMA and our overseas counterparts. As we embark on further deepening of the derivatives markets in the Asian region, the high standards set up by regulators and by the industry over the past ten years should be well respected, and strengthened regulations on margins, clearing, and transparency should be taken seriously as safeguards against potential risks. Let me close by saying a few words about our host today. ISDA has been instrumental in promoting standardisation of documentation and practices in derivatives markets. In the process, it has played a key role in navigating the industry through post-crisis reforms. ISDA is and will continue to be an important platform for consensus building and knowledge sharing. I’m certain that ISDA will remain a valuable partner for everyone in Asia as we continue to overcome the challenges I discussed today. I look forward to more fruitful collaboration going forward.