will be introduced for leverage, liquidity, the handling of market risks that lead to credit risks, the treatment of securitization and inter - financial exposures, and mitigating counterparty risks, among others. beyond the basel accord, the distinction between otc and exchange - traded derivatives is effectively being removed to ensure price transparency and improved governance. payment systems are now governed by new principles set for providers of so - called financial market infrastructures ( fmis ) while the use or non - use of these fmis by market players will have consequences. there are many other reform initiatives that could be cited. at the end of the day though, all of these are geared to the common purpose of achieving financial stability. we will have every opportunity to discuss how high to set the prudential bar but the principles behind the change in the global standards are difficult to ignore. capital market development : moving beyond the usual rhetoric apart from the global initiatives, we do have our own set of concerns. capital market development has been in and out of vogue through the years. however, many unresolved issues remain and this is our second major challenge. the capital market blueprint prepared under the auspices of the securities and exchange commission headed by chairperson herbosa is the take - off point. i urge the stakeholders to look carefully at the blueprint and commit to the deliverables within their purview. from the perspective of the bsp, a few specific issues are most critical. who will disagree with the proposition that benchmarks are central to our market and its operations? whether it is to price a new issue or value / re - value an existing exposure, the role of benchmark rates simply cannot be over - stated. despite many initiatives and formulations, we remain well - short of a viable yield curve that properly reflects credit and bis central bankers ’ speeches liquidity risks. we have all heard of ois, implied zero rates and single price as the latest round of initiatives towards an acceptable yield curve. we look forward to having these initiatives come to fruition, hopefully by end - year. the role of clearing entities and similar dis - interested 3rd parties will also be critical. a part of this goes back to the issue of valuation. at this juncture, we do need to think about the broader policy framework for our market infrastructure. to execute our capital market agenda, these are the areas that need to move beyond rhetoric. taking the challenges forward ladies and gentlemen, the past

to implement new rules that will make it easier for the government to unwind big financial firms if they get into trouble, rather than being faced with the terrible choice of either bailing them out or risking the collapse of the financial system if they fail. of course, the federal reserve was never intended to shoulder the entire burden of promoting economic prosperity. fostering healthy growth and job creation is a shared responsibility of all economic policymakers, in close cooperation with the private sector. spending and tax policy is of critical importance, but a wide range of other policies – pertaining to labor markets, housing, trade, taxation, and regulation, for example – also have important roles to play. bis central bankers ’ speeches financial protections for servicemembers the federal reserve, along with the other agencies, is working hard to enforce an array of strengthened regulations that protect mortgage borrowers, credit card holders, and other consumers of financial services. the people in this room should be aware, in particular, of the special rights and protections provided to military personnel by the servicemembers civil relief act. the law ’ s purpose is to allow servicemembers to perform their duties without worry of foreclosure, eviction, and civil prosecution – under most circumstances. it caps interest rates for debts incurred before a servicemember begins active duty, it prevents creditors from foreclosing on a home or repossessing a car without a court order, it gives servicemembers the option to terminate residential property and motor vehicle leases, it stays civil proceedings while servicemembers are on active duty, and it entitles servicemembers to reinstatement of health insurance that was in effect before their military service began. additionally, department of defense rules regulate the terms of certain kinds of high - cost loans to servicemembers and their families, such as payday loans, tax refund anticipation loans, and motor vehicle title loans. advice on securing and promising financial future it takes more than rules, however sound, and enforcement, however diligent, to provide you and your families with a promising financial future. while i have the pulpit, so to speak, permit me to offer three pieces of advice. first, while you are in the military, take advantage of training opportunities. many specific skills learned in the military – nursing and healthcare, mechanics, computer programming, police and security work – transfer to civilian jobs. the military also offers training in various life skills. for instance, this