to the system. fairness requires markets that are professional and open, in which everyone is accountable for their actions. that is why the uk has led the global effort to address misconduct and restore trust in financial markets. we have sharpened incentives through compensation rules that align risk and reward. the senior managers regime has re - established the link between seniority and accountability. and the private sector is developing standards of market practice that are well understood, widely followed and up - to - date with market developments. an effective financial system is dynamic. with the foundations of resilience and fairness reinforced, the uk financial sector is innovating to serve the changing real economy just as it did during three industrial revolutions and two waves of globalisation. the global ficc market standards board ( fmsb ) is developing readily understood standards for their markets. and the global fx committees have published the fx global code, the first globally consistent code of conduct for fx markets. all speeches are available online at www. bankofengland. co. uk / speeches during the 18th century, regional banks acted as venture capitalists, providing equity to power the first industrial revolution. in the mid - 19th century, the city underwrote vast issuance of railway securities, spurring the creation of stock exchanges and the development of modern capital markets. during the first wave of globalisation in the 19th century, the development of correspondent banking and trade credit services drove an explosion in global trade, hedged by a step change in activity in the lloyd ’ s market. during the second wave of globalisation in the 20th century, london quickly embraced new information technologies, becoming the first major centre to adopt electronic trading. the uk ’ s openness to foreign currency banking, beginning with the creation of the eurodollar market, spurred a renaissance of global capital flows. this financed enormous efficiencies through new global supply chains and unprecedented prosperity by opening up emerging markets. throughout the centuries, it ’ s been clear that private innovation works best when it is grounded in the right public infrastructure. that includes hard infrastructure – from liquidity facilities to payments architecture – and soft infrastructure – from the rule of law to up - to - date codes of conduct and effective regulatory frameworks. this infrastructure must be overhauled now that the economy is on the cusp of the fourth industrial revolution and our demographic challenges are intensifying. and rebalancing of the global order is proving as dramatic as it was in montagu norman ’ s time. such profound

annual savings of over £600 million. most fundamentally, the more seamless are global and domestic payments, the more uk households and businesses will benefit from the new global economy. third, as we overhaul rtgs, the bank is making it easier for the uk financial system to realise the promise of big data. the new rtgs will capture much richer data on every payment made in a format that defines international best practice. the bank is currently consulting on how to do this, including on the desirability of embedding the best corporate identifier, the legal entity identifier ( or lei ), in rtgs and all the uk ’ s main payment systems. this will improve access to the domestic and global financial system, support greater choice and competition for corporate end - users, and advance anti - money laundering and combating the financing of terrorism efforts. the bank is also ensuring our rules and regulations – or soft infrastructure – are fit for the new finance. we have streamlined our approach to authorising banks to make it easier for banks with innovative business models to be approved. since 2013, 37 banks have been authorised, of which 16 are new uk bank startups and four are internet - only. with the fca we ’ re are exploring how artificial intelligence and machine learning could be used to make the reading of our rulebooks easier, the reporting of regulatory data quicker and the analysis of that data more efficient. and the bank is thinking through how regulation may need to change with the investment needs of the new economy, including new approaches to risk models and secured lending in a world of intangible capital and data - based finance. in april 2018 : https : / / www. bankofengland. co. uk / news / 2018 / april / non - bank - psp - access - to - the - payments - system - announcement. mckinsey world payments map ( 2016 ). the g20 ’ s lei, which originated as a risk management tool for the financial sector, standardises identities for companies. see https : / / www. bankofengland. co. uk / news / 2018 / june / iso - 20022 - consultation - paper - a - global - standard - to - modernise - uk - payments. all speeches are available online at www. bankofengland. co. uk / speeches b ) the new world as the uk economy changes, the world is being reordered. over the past quarter century, emerging