and • on financial market infrastructure, this too is very much work - in - progress. do any of these really matter? if we are going to talk about asean integration, we certainly need to have a thriving market that can connect and compete with the rest of the region. while many jurisdictions in asean – and asia for that matter – remain bank - centric, the pressure on the banking books needs to be mitigated when 15, 20 and 25 year loans are generated from a funding base largely made up of savings deposits. the gapping risk is significant and the global focus on liquidity risk makes this issue even more stark. bis central bankers ’ speeches but being bank - centric cannot be taken independently of the other financing alternatives. while we have 262 publicly - listed companies with a market cap of usd 279. 5 billion, the average for the rest of asean - 5 is 612 listed companies with a market cap of usd 406. 9 billion. our gs turnover ratio of 0. 49 is also lower than the average for the rest of asean - 5 which is at 0. 69. the lower trading activity could be attributed to several factors. the net effect however is that we have less liquidity in the secondary market and with that comes our challenges with benchmarks. renewed reform agenda ladies and gentlemen, the numbers are available for everyone to see. but beyond the figures, i trust that today ’ s forum is a call to action, highlighting where we are and what needs to be done. from today ’ s proceedings, allow me to offer my own thoughts on four issues. first, the capital market development blueprint is our guidepost in terms of three facets : price, volume and infrastructure. we strive for price discovery to develop a robust yield curve. we should do this by trading on exchanges or electronic platforms, premised on government securities that have depth across the curve. we should also be unrelenting in upgrading the financial infrastructure to ensure competitive and efficient markets, enhance market discipline and protect investors. second, asean integration of capital markets provides both investors and issuers new opportunities. we can only effectively reap these opportunities by ensuring that our own market is competitive. thus, the challenge is to appreciate what needs to be done, first for our market but with an eye towards the regional market. this agenda is massive because we need to focus on trading and post - trade infrastructure ( from ccps to csds, to sss, trs ) to applying established standards (

however, the adjustment in mexico has been orderly, with abundant liquidity prevailing in market operations. furthermore, during 2015, holdings of peso - denominated government bonds by nonresidents have remained stable. while somewhat higher than last year, interest rates continue to be relatively low for all terms. nevertheless, as u. s. monetary policy normalization is around the see blue chip economic indicators, march 2015, and banco de mexico ( 2014 ), quarterly report, octoberdecember 2014, summary, february. see shcp ( 2015 ), “ la shcp anuncia medidas de responsabilidad fiscal para mantener la estabilidad. ” press release 007 / 2015, january. bis central bankers ’ speeches corner, some portfolio adjustment and further bouts of volatility cannot be ruled out. therefore, financial authorities must remain on watch. so far in 2015, inflation has returned to a path of convergence with the bank of mexico ’ s 3 percent permanent target, after a year of straying due to temporary factors such as tax hikes and agricultural price pressures. the recent decline in inflation has been supported by the disappearance of the effect from last year ’ s tax increases and fading pressures from agricultural prices, along with lower key telecoms and electricity prices. the better inflation performance must be maintained. upside risks include more significant pass - through from a weaker peso down the road, as well as the resurgence of spikes in noncore inflation prices and eventual aggregate demand pressures. close monitoring of these risks is all - important in view of the fact that analysts ’ long - term inflation expectations remain above the 3 percent target. sustained convergence with the target must be consolidated. final remarks mexico is on a path that should help take it to the resolution of fundamental issues obstructing productivity and long - term growth. in particular, recent telecoms and energy reforms seek to foment investment and competition in these sectors, which may boost the efficiency of the economy. the degree of success of these and other reforms should be defined in terms of enhancing the economy ’ s potential. this will depend heavily on the quality of implementation, in the sense that these reforms actually lead to greater market flexibility and investment, and generate substantially effective competition. moderate cyclical economic recovery in mexico is underway on the back of stronger u. s. performance. persistently lower oil prices and upcoming u. s. monetary policy normalization pose challenges to both mexico ’ s economic up