put forward by national treasury in 2011 page 5 of 8 and i am sure everyone here is aware of what the plan is going forward. nonetheless, let me remind you that, among other things, the proposed conduct authority will have a mandate to enhance and support the integrity and efficiency of the domestic financial system. this mandate will be provided for in the financial sector regulation bill which is expected to confer powers on the sarb ( as the prudential authority ) and the financial services board ( as the financial sector conduct regulator ) to preserve and enhance financial stability and to improve market conduct in order to protect financial customers. codes of conduct in the wake of the recent scandals of market manipulation, south africa has been very active in the development of codes of conduct, starting with the jibar1 code of conduct in 2012, the code of conduct for authorised over - the - counter ( otc ) derivative providers is in the process of being finalised and, most recently, the code of conduct for wholesale otc financial markets ( otc code ) which is still in a developmental phase, having had the benefit of input from relevant financial market stakeholders. it is envisaged that a number of other specialist codes of conduct will be developed for different segments of the wholesale financial markets, with the otc code serving as a general code for those market participants who are not covered by a specific code of conduct pertaining to their market segment. as regards the foreign exchange market, many of you will be aware that the bis foreign exchange working group released the global foreign exchange code ( the global code ) last week, which addresses, in a comprehensive manner, best practice covering areas such as market ethics and information sharing, but also tackles complex issues such as electronic trading and algorithmic trading. this is the first time that a single, unified, global code was established, providing guidance and principles that can apply across many jurisdictions and market segments. the sarb was afforded the opportunity to participate in the development of the global code. south africa has become a member of an expanded and formalised global foreign exchange committee, whose objectives are to promote collaboration among local foreign exchange committees, to exchange views on trends and developments in 1 johannesburg interbank agreed rate page 6 of 8 global foreign exchange markets, and to promote, maintain and update the global code on a regular basis to ensure its continued relevance. each member foreign exchange committee designates a central bank and private sector representative for the global foreign exchange committee. following consultations with the financial markets liaison

global goldilocks meets the three bears. " the reasoning behind this is that “ goldilocks - - a. k. a. the world economy - - has been enjoying a not - too - hot, not - toocold 4 - per - cent plus growth rate over the past four years thanks to steady prices ”, robust u. s. growth and the new wealth experienced by emerging markets countries. however the journal goes on to identify the three growling bears that are threatening to spoil the fairy tale. mama bear is the “ increasing energy insecurity, a beast spawned by rising oil prices but made more dangerous by escalating political risk afflicting almost all the major producers : iran, iraq, nigeria, venezuela, russia and saudi arabia. papa bear comes in the form of deflating housing prices in several countries. the lost wealth effect of inflated property values, whether gradual or sudden, could unsettle not only ” american consumers - - but also hit other countries with similar problems of high debt ratios and low savings. “ baby bear is inflation, whose sudden growth in some countries ” has spooked the global market and sparked the recent sell - off on the expectation that higher interest rates could slow corporate growth and consumer spending. the important question is whether recent significant market corrections were short - term in nature or whether they were the “ sort of overdue awakening to risk ” that many economists have been predicting. some are even convinced that markets are finally responding to " unsustainable global imbalances " - - symbolised by record u. s. deficits and asian surpluses. but as we are all, too aware, markets do over - react from time to time. we hope that calm will soon return for there is a lot of value out there. oil prices, property prices and inflation do not only pose dangers to the us economy but certainly pose significant dangers to many other countries including our own. although economic doomsayers often have been proven wrong in the past few years by the remarkable resilience and flexibility of the u. s. and other leading economies, the threatening nature of these bears is something to keep a close eye on. consumers are more likely to reduce their spending the longer energy prices stay high and the more they worry about asset values. although some may argue that this is not much of a threat given that oil prices have risen to $ 70 a barrel without slowing global growth or igniting second - round inflation, geopolitical risks