yves mersch : evolving regulatory environment for ccps - the perspective of a central bank speaking points by mr yves mersch, member of the executive board of the european central bank, at the cumberland lodge financial services summit, cumberland lodge, windsor, great park, 10 november 2017. * * * introduction i am delighted to return to this year ’ s summit. i spoke last year about the systemic importance of central counterparties, and their importance, in particular for monetary policy transmission. i spoke about how the growth of these infrastructures means that the existing regulatory framework will need to be enhanced, to address the increasing risks posed by ccps. i also spoke of how the prospect of the uk ’ s exit from the eu creates uncertainty regarding the future of the regulatory and supervisory framework for non - euro area ccps that clear significant amounts of euro currency. there have been very significant developments at eu level since i spoke about this topic last year. the most notable development has been the commission ’ s proposal from june of this year to amend the emir framework for the supervision and regulation of eu and third country ccps. we strongly welcome the proposals to strengthen the role played by the central banks of issue of the eu in the regulatory framework, as the authorities responsible for the implementation of monetary policy. this strengthening is necessary in light of two major trends of the past few years. first, since emir first entered into force there has been a continued growth of central clearing and resulting financial risk concentration in ccps. this has significantly increased the potential disruptive effects that ccps can have on the implementation of our monetary policy. second, the uk departure from the eu implies that a very large part of euro - denominated clearing activities across all asset classes may be performed from outside the eu in the future. while central clearing is undeniably a global industry, the range of euro - denominated asset cleared outside of its monetary zone is unparalleled for any other major currency around the world. this clearly points to the need to strengthen the eu regime for third country ccps and to enhance in this context also the role of the relevant central banks of issue. as distinct from the need to strengthen the role of the central banks of issue serving a monetary policy purpose, it is also fully justified to seek to strengthen the supervisory regime for ccps take the case of third country ccps : until now, the eu ’ s approach towards third country ccps, including those that are of systemic importance, has been

nout wellink : how regulators contribute to a sustainable pension industry speech by dr nout wellink, president of the netherlands bank and chairman of the bank for international settlements, at the fortis pensionfund seminar, utrecht, 15 february 2006. * * * a seminar on the consequences of new legislation and other rules for pension funds cannot take place without the pension regulator, not least because it is his duty to enforce compliance with the new rules and regulations. after all, the objective is to ensure that the pension quality promised is actually delivered. i was therefore only too keen to take this opportunity to exchange views with you on “ how regulators contribute to a sustainable pension industry ”. i have taken the liberty to split my theme. in the first part of my address, i wish to look at the concept of sustainability and what it means for the dutch pension system. sustainability depends on three elements : discipline, transparency and a strong pension industry. in the second part, i will discuss the close link between pension supervision and these three elements, and their contribution to a durable pension system. the messages i wish to convey are : • first of all, a durable pension system is based on discipline : everyone must stick to the rules of the game. the future is unknown and the ensuing risks to the sustainability of our system are considerable. from the perspective of sustainability, both cost - effective contributions and adequate buffers are a sine qua non. • in the second place, sustainability goes hand in hand with transparency. pension funds need to be sufficiently transparent about what their participants, including future participants, may expect. • thirdly, a durable pension system depends upon a strong pension industry. legislators, regulators and the sector have a shared interest in maintaining and propagating the comparative advantages of the netherlands when it comes to pension provisions. a durable pension system calls for discipline let me begin with the importance of discipline. for a pension system to be durable, all players must abide by the rules. at the heart of the rules in the netherlands lies a funding system, where commitments are sufficiently covered by provisions and risks by appropriate reserves. we need to beware of slackening discipline and refrain from allowing deviations from the rules out of short - term considerations. that was true yesterday, it is true today and it will be true tomorrow. i expressly mention “ yesterday ”, because it was only a short while ago, to be precise in the 1990s, that discipline throughout the sector was under pressure. contributions