a strong impact on other jurisdictions. a grouping of market regulators, including asic, has been convened to develop some common understandings around the cross - border application of rules. particularly in a global market such as that for otc derivatives, consistency with other jurisdictions ’ rules is an important consideration in the development of the domestic framework. as otc derivatives markets make this transition to central clearing, interest is emerging from overseas - based central counterparties in providing their services directly to australian - based participants. many international participants in the australian interest rate swaps market already clear their trades through the uk - based global central counterparty, lch. clearnet limited ( lch ). lch has announced that it will be seeking a licence to provide these services directly to australian - based participants, alongside a competing offering being developed by the domestic derivatives central counterparty, asx clear ( futures ). to the extent that participants in smaller markets choose to clear via overseas - based central counterparties it is important that they can do so on appropriate terms, and also that the interests of regulators in these jurisdictions be given due weight. in july last year, asic and the reserve bank jointly published a document setting out the measures that would be taken to ensure appropriate regulatory influence where an overseas - based central counterparty was operating in australia. these measures would be applied in the oversight of lch or any other overseas - based central counterparty that might obtain a licence to provide such services. 3 in a world of more central clearing, the question of how the official sector would deal with a situation of fmi distress assumes more importance. as a result of a review by the council of financial regulators in 2011, work is in progress to develop legislative proposals that would an example of this was recent guidance by the bcbs on the usability of high - quality liquid assets under the liquidity coverage ratio. another is the technical guidance by the fsb to assist national authorities and crossborder crisis management groups in their recovery and resolution planning. in accordance with this approach, the reserve bank has already assumed a seat on a new cooperative oversight arrangement for lch. this will provide a vehicle for representing australian interests in the design and operation of this important piece of infrastructure. bis central bankers ’ speeches give effect to a “ step - in ” power as part of a comprehensive resolution regime for fmis. this is to be designed in accordance with international standards. 4 these are just a few examples of how the world of regulation and financial

##repancy between the economic concept that we would want to measure and the real phenomenon that the statistics attempts to measure. for example gross domestic product seeks to measure the total economic activity, the value added that takes place in the economy over time. it is almost impossible to measure this directly. instead much of the data is estimated from surveys. this gives rise to measurement issues relating to coverage, sampling and non - response, but not such as to undermine their integrity. it is therefore normal to have revisions as new information that improves the accuracy of the data is received. gdp growth and inflation ( as measured by changes in cpi ) are two of the most important indicators that are closely watched. they do have both economic and political significance, as they have become the standard tools for assessing performance. 1 / 2 in fact, ease of access to official statistics has become a hallmark of open and democratic societies, making it imperative for ensuring its accuracy and timeliness. the only way we can measure our short - to - medium term macroeconomic performance would be to effectively and accurately measure trends in monetary aggregates, balance of payments, debt sustainability and fiscal performance in addition to gdp and inflation. sound statistics are necessary to monitor these trends closely and accurately because of the economic costs that can accrue from imbalances and deviations of these indicators from sustainable levels. mr. chairman, a conscious effort on our part to improve upon data collection in terms of timelines and accuracy has an international dimension of interest. data are essential for investors, international organisations, financial institutions, banks and fund managers who rely on data of various countries to evaluate their investments. we all agree that data can be unreliable and prone to different interpretations or too dated to be useful. improving upon the reliability and timeliness of data enhances the chances of attracting foreign direct investment and allowing better assessment of various risks associated with investment decisions. absence of data closes the door to any access to financing from the international capital markets in a globally interdependent world. there is a need for proper funding and adequately resourcing our official institutions in charge of generating data, not only to ensure that disseminated data are accurate and reliable but also to ensure that they are current and not dated. mr. chairman, notwithstanding the significance of accuracy and timeliness of data in our national building efforts, our official institutions that have responsibility for collecting, collating and analyzing data have not received the prime support in terms of resources. it is caught up in a vicious