A number of other countries have committed to a new, global standard ISO20022; in the UK the Bank of England and Pay.UK have committed to introduce it for CHAPS and Pay.UK’s retail payment systems, via the introduction of the Common Credit Message, helping to integrate a common language for global payments data in the UK’s payment systems16. I’m sure many of you recognise the ISO20022 from the ECB’s Target2-Securities and Target Instant Payment Settlement17 . In doing this the Bank has also committed to making Legal Entity Identifiers a mandatory component of its financial institution to financial institution CHAPS messages, and can see great value in also extending use of Legal Entity Identifiers (LEI) to a wider range of transactions in the longer term. I’m sure many of you are familiar with the LEI, as part of MiFID II transaction reporting. As well as being a valuable financial reporting tool, we believe the LEI could be a building block for further innovation, delivering wider economic benefits for end users of financial services – increased usage could raise efficiency, competition and productivity18. As well as the benefits that come with international harmonisation, greater flexibility, and richer payments data, there are gains to be had for system-wide resilience. Using the same messaging standard across many payment systems will help to facilitate the re-routing of payment messages, reducing the impact of system outages.

The global challenge of climate change; the shift in demographics as society ages; the growth of emerging market economies and opening up of their capital accounts - will all continue to drive  1  Post-trade generally refers to the processes applied to a trade subsequent to its execution. See World Bank and International Telecommunication Union, Individuals using the internet (% of population), World Telecommunication/ICT Development Report and Database. Available at: https://data.worldbank.org/indicator/IT.NET.USER.ZS 3 See World Bank and International Telecommunication Union, Mobile cellular subscriptions (per 100 people_, World Telecommunication/ICT Development Report and Database. Available at: https://data.worldbank.org/indicator/IT.CEL.SETS.P2 2  2  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  2  changes in the global financial system. Large, interconnected and complex markets adapting to these changes require robust infrastructure underpinning them. So, finance is changing, and technology is both driving and enabling that change. The rise of fintech is one obvious manifestation, with the transformational role it is beginning to play in finance. The Bank recognises this, having a strategic goal of embracing fintech. The Governor spoke at last week’s Innovate Finance conference4, previewing the approach the Bank is taking to its work on the future of the UK financial system5 in response to key economic trends, and how we can provide a platform for a more resilient, effective and efficient financial system. I spoke too, highlighting the role of our Fintech Hub6 in delivering our goal. The pressure of technological change is pertinent to the post-trade system where, industry-wide our capabilities are likely lagging our potential.