the pre - crisis system had merely spread risk, contingently and opaquely, in ways that often increased it. all speeches are available online at www. bankofengland. co. uk / news / speeches once the crisis began, risk quickly concentrated on the balance sheets of intermediaries that were themselves capital constrained. and with the fates of borrowers and lenders tied together via hyper - globalised banks and markets, problems at the core spread violently to the periphery. the post - crisis response included major reforms to simplify markets and make them more robust. a vital plank was to encourage greater central clearing of otc trades, which prior to the crisis had been largely unregulated, unreported and bilaterally settled. when lehman fell, uncertainty about these exposures sparked panic. routing bilateral trades through central counterparties untangles this tangled web. globally, the stock of centrally cleared derivatives has more than doubled since the crisis. 1 and around two - thirds of outstanding interest rate derivatives in the uk and europe are cleared through ccps. 2 of course, central clearing means that ccps are sources of systemic risk, which is why benoit led efforts to build their resilience and improve their resolvability. as chair of the committee on payments and markets infrastructure ( cpmi ), he oversaw the implementation of the principles for financial market infrastructure – a set of demanding, international standards for payment, clearing and settlement systems that ensure ccps are robust to shocks. as a result, an additional $ 1 trillion of collateral is now held globally against all derivative trades. under benoit ’ s leadership, the cpmi has worked with other authorities to finalise and implement global standards for resolution. and he has consistently encouraged greater cross - border cooperation, better information sharing and more coordinated stress testing. whilst the infrastructure that underpins our markets is now in much better shape, nascent risks remain that, if left unchecked, could bring new problems. consider market liquidity. during the crisis, liquidity dried up, particularly in the interbank market, as cash - rich banks hoarded excess funds. in parallel, a “ run on repo ”, triggered by increased haircuts on collateral to guard against counterparty risk, pushed the shadow banking sectors in advanced economies to collapse. in the euro area, the sovereign debt crisis compounded these problems, causing some markets to splinter along national lines. global reforms address the fault lines that caused this fiasco. new

message received and understood − speech by dave ramsden given remotely at a conference by the lietuvos bankas and the bank for international settlements ( bis ) on the “ future of central banking ” published on 29 september 2022 speech introduction thank you very much for the invitation to join this panel today and i am very sorry i can ’ t be with you in vilnius. real - time market developments kept me here in london, but i ’ m grateful to the organisers from the central bank of lithuania and from the bis for allowing me to contribute virtually to the bank ’ s 100th birthday conference. i really welcome the focus of this panel on data since having access to fast, accurate, appropriately structured data is critical in equipping central banks with the knowledge they need to function in order to meet their objectives. the bank of england ’ s mission to deliver monetary and financial stability is a broad and deep one. we need a similarly broad pool of data of varying depths to fulfil our mission. in 15 minutes i cannot hope to do justice to the variety of data we need to get a clear picture of the economy, the financial system as a whole and the firms we regulate in order to frame action. last year the bank and pra published our data strategy, joint with the fsa, setting out how we will transform our collection and use of data to fulfil our responsibilities as a supervisor and regulator [ 1 ]. in my time today i will focus on my bank responsibilities for payments and give a real - life example of why having real - time data matters and also point to how we could make payments data even more useful through the message that communicates the data. i will conclude with a brief recap on uk financial market developments this week and highlight the use we are making of real - time data to respond to those developments to meet our objective for financial stability. use of real - time payments data the covid - 19 pandemic continues to impact on us in many ways and to change how we do things. in the context of today ’ s panel the pandemic acted as a catalyst for extending use of the bank ’ s payments data. right from its start in march 2020 we knew that the pandemic and the necessary response to it would have very serious but also very different impacts on different sectors of the economy. but it was much less easy to be confident of the scale of those differential impacts and over what time frame. extracting a signal from an understand