standardisation in cards, payment innovations, a migration end date, and the governance of payment issues at the European level. 4  BIS Review 74/2009  Harmonisation in the field of retail payments is a natural area for efficiency gains. However, the market is moving only slowly in this direction. Although SEPA continues to be a mainly self-regulated project, some elements might need more regulator involvement. The Eurosystem has emphasised that a realistic but ambitious SEPA migration end date is necessary. Such a date would facilitate communication and provide more certainty for all stakeholders. The most viable option for achieving an end date is through regulation by the public authorities. Since an EU regulation is probably the most effective option the Eurosystem appreciates the Commission’s launch of a public consultation on this topic. Only by tearing down the walls of fragmentation can we ultimately bring about harmonisation, efficiency gains and a level playing-field. Such a development inevitably leads to increased competition. I am fully aware that it is not easy – especially in a period of low growth and higher credit risks – to change revenue models. However, those who invest early will benefit and position themselves successfully. Corporates tell us that they would benefit from SEPA services because they are internationally connected. Taking into consideration the renewed relevance of retail payments, the key success factors in the years ahead will be harmonisation, innovation and increased competitiveness. Banks and infrastructures will successfully take up these challenges only by continuing to play an important role in retail payments.

At EU level, the forthcoming ESCB-CESR recommendations for central counterparties have already been revised to include specific guidance on their application to CCPs for OTC derivatives. It is now also crucial to achieve such a common understanding at the global level as well. In this respect, we look forward to the recently initiated joint efforts of the CPSS and IOSCO to review the CPSS-IOSCO recommendations for central counterparties issued in 2004. Finally, I wish to reiterate that the introduction of CCPs will not be a panacea for addressing all concerns regarding the resilience and efficiency of OTC derivatives markets. For instance, we will need complementary action to ensure better risk management and transparency as well for those products that are not yet sufficiently standardised to be eligible for central clearing. Furthermore, sound post-trading needs to be complemented by enhanced trading, pre-clearing and lifecycle management of OTC derivatives, e.g. via the greater use of automated trading and confirmation, portfolio compression, the registration of all trades in central data depositories, as well as enhanced risk management and disclosure requirements for the financial institutions involved in OTC derivatives trading. Towards more efficient and resilient retail infrastructures for the euro area Let me finally come to the third issue we need to focus on beyond the current turmoil: the vital role of retail infrastructures in terms of financial stability. The retail business facilitates the bulk of payments related to the day-to-day lives and financial activities of both individuals and companies.