credit derivatives dealers was initiated to support industry efforts to address weaknesses in the operations surrounding credit default swaps ( cds ). while we view these new instruments as an effective way to diversify and mitigate risks related to credit exposures from corporations, an industry - led study, the counterparty risk management policy group ii report, identified significant weaknesses in the infrastructure supporting sales and risk monitoring of these instruments. while the report identified forty - seven recommendations, regulators in the united states and other countries have focused on two major weaknesses. one weakness relates to the lack of discipline in enforcing contract terms. any time an instrument is traded over the counter, it is important to know with whom you are doing business. since an exchange does not stand between the two sides of the trade, parties make payments directly to each other to honor the terms of the contracts. the market practice is to use collateral or pricing to mitigate the risk that the other side of the trade cannot perform according to the agreement. the recent industry study also found that competitive pressures were such that brokers were not enforcing the standard cds agreement, because their counterparties were routinely assigning the trade to another party without the broker's prior consent. as a result, dealers often did not have a real - time understanding of the counterparty exposure. obviously, this can significantly change the risk profile of a transaction and also make it very difficult to settle payments in a timely manner. another weakness is related to the success of the product. trading volume has grown so quickly and reached such a significant level that broker - dealers'paper - based systems to record the trades and document the transactions have not been able to keep up. as a result, significant backlogs of confirmations of these over - the - counter derivatives built up. this creates concerns that information feeding risk - management systems - information about the volume, term, and counterparty to the trade - is not complete. this problem would be exacerbated in a stress situation, when positions need to be changed very quickly to mitigate risk. a few months ago, fourteen major market participants published a letter reiterating their commitment to improving the infrastructure that supports the credit derivatives markets. the market participants are committed to the development and implementation of a set of industrywide guidelines that include a targeted reduction in each market participant's confirmation backlogs and assurance that agreement terms will be enforced. additionally, the fourteen participants will work to create a largely electronic marketplace in which all trades will be processed through

legislated pension reforms will imply in europe, between 2016 and 2070, an increase in the statutory retirement age of more than two years ; 16 the impact on labour force participation for the 55 - 64 age class will be substantial ( 12 percentage points ). the increase will be much stronger in italy, where radical reforms enacted gradually over the past two decades have transformed what used to be one of the least sustainable public pension systems into one of the most sustainable. between 1990 and 2016, average age at retirement had already increased from 57 to more than 62 ; it is expected to have increased by a further five years by 2070. participation rates in the 55 - 64 age class are projected to be among the highest in large european countries. ( let me add that we need to revise the age brackets we typically use : ‘ 65 + ’ can no longer be taken as synonymous with ‘ presumed retired ’. ) one might think that an ageing workforce would be less productive or innovative, or that grey heads keeping their jobs for longer will displace younger workers. there can be different points of view on this. on the one hand, recent research concerning italy17 shows that the unexpected increase in the employment of mature workers that took place after changes in public pension rules in 2012 did not reduce employment in other age classes. on the other hand, a paper 18 to be presented tomorrow finds a negative impact of ageing on dynamism and growth. managing migration is the trickiest challenge of all. good, dispassionate, data - based economic research may help set the stage for an informed public - policy debate. one paper that will be presented tomorrow 19 on the impact of the regularisation of undocumented migrants on the labour market in spain is very much in this spirit and provides interesting, nuanced results. european commission ( 2018 ), european semester winter package : reviewing member states ’ progress on their economic and social priorities. european commission ( 2018 ), the 2018 ageing report : underlying assumptions and projection methodologies. carta, f., d ’ amuri, f. and von wachter, t. ( 2018 ), ‘ workforce ageing, pension reform and firms ’ dynamics ’, bank of italy occasional papers ( forthcoming ). engbom, n. ( 2018 ), ‘ firm and worker dynamics in an aging labor market ’. monras, j., vazquez - grenno, j. and elias, f. ( 2018