eu ’ s strategy to address the effects of the financial crisis, but at the same time aims to bring greater transparency to markets and to strengthen investor protection. these changes are a key for restoring the trust in the eu financial markets. in reaction to the global financial crisis, the eu has also introduced the european market infrastructure regulation ( emir ) that initiates a reporting obligation for otc derivatives, a clearing obligation for eligible otc derivatives, measures to reduce counterparty credit risk and operational risk for bilaterally cleared otc derivatives, common rules for central counterparties ( ccps ) and trade repositories ( trs ), and rules on the establishment of interoperability between ccps. mifid 2 and emir are causing many changes in the financial market infrastructure, but changes are also happening as a result of other regulations such as the central securities depositories regulation and target 2 securities project. some of them will change market practices as well, not only financial infrastructure. to conclude, excessive risk taking and leveraging have been one of the main causes of the financial crisis. as we are all aware, various policy initiatives are on the policy agenda to enable effective financial services reform. a sound, stable and resilient financial sector capable of providing funding to the real economy is of major importance for growth in the medium and long term. both the financial reform agenda ( internationally coordinated by g20 ) and the unique project of creating a banking union with single supervisory and resolution mechanisms ( ssm, srm ) and a single rulebook will change the set - up of financial markets. the implementation of the financial sector reforms will also necessitate a vast amount of secondary legislation that may have a sizeable impact on the funding of the real economy. bis central bankers ’ speeches i hope that you will enjoy the workshop and that we will all learn much from the very impressive array of speakers. thank you. bis central bankers ’ speeches

and macroeconomic policy. the items on regulation can themselves be divided into two subgroups. on the one hand, the g20 decided to tighten or strengthen the regulatory framework applying to entities or activities that had already been regulated before the crisis. examples include : • a more demanding framework for the capital, leverage, and liquidity of banks, prepared by the basel committee on banking supervision ( bcbs ) and known as the basel iii accord since its initial exposition in 2010 ; bis central bankers ’ speeches • special regulatory treatment of systemically important financial institutions ( sifis ), such as additional capital ( or in the basel jargon, “ loss absorbency ” ) requirements ; and • additional disclosure obligations for banks. on the other hand, entities or activities that until 2008 were mostly outside of the scope of regulators were made subject to a comprehensive regulatory framework : • over - the - counter ( otc ) derivatives, • executive compensation, • credit rating agencies, • hedge funds, “ shadow banking ” ( i. e. entities and activities that are not regulated as banks, but present bank - like systemic risk profiles ) and, more recently, • financial benchmarks ( following the detecting of fraud in the setting of libor, the london interbank offered rate, and other similar reference rates ). all those initiatives that were envisaged by the g20 are translated into regulatory changes in us and europe. in the us, dodd – frank wall street reform and consumer protection act ( or known as dodd - frank act ) implements changes that, among other things, affect the oversight and supervision of financial institutions. the dodd - frank act creates the financial stability oversight council to oversee financial institutions. additionally, it provides for a new resolution procedure for large financial companies, a creation of a new agency responsible for implementing and enforcing compliance with consumer financial laws, introduces more rigorous regulatory capital requirements, affects significant changes in the regulation of otc derivatives, includes reform of the regulation of credit rating agencies, implements changes to corporate governance and executive compensation practices, incorporates the volcker rule, requires registration of advisers to certain private funds, and affects significant changes in the securitization market. in the eu, markets in financial instruments directive mifid is an important step in the biggest overhaul of financial markets regulation in the eu for a decade. however, the new regulatory framework consists of directive ( mifid 2 ) and regulation on markets in financial instruments ( mifir ). it is an integral part of the