. there are differences though at a more detailed level. in the us there is only a narrow exemption from the clearing obligation for non - financial entities that enter into certain hedging transactions. in the eu the clearing obligation applies to financial counterparties when dealing with other financial counterparties ; non financial counterparties only become subject to the clearing obligation when their positions exceed a certain threshold. nevertheless, an obligation to clear eligible derivatives through ccps can only mitigate part of the risk associated with derivatives. after all, there will always be a need for bespoke contracts that cannot be standardised. by implication, there will be an otc derivative market for tailor made or more complex products. therefore, improvements of risks management systems are desirable, also for institutions outside the banking sector. requirements to register derivatives contracts in central repositories, especially those that are not cleared through central counterparties, will contribute to transparency. also, national authorities will have to cooperate closely and share relevant information in order to assess where systemic risk might be building up. certain capital requirements / basel iii another recent initiative to mitigate counterparty risk in the derivatives markets is a proposal of the basel committee for banking supervision. the basis idea is straightforward : the capital weight for derivatives that are bilaterally cleared will be higher than those for derivatives cleared through ccps. in this way, the additional risk for these trades can – at least – to some extent be taken into account. it also provides an incentive to clear derivatives through ccps. the costs associated with the use of a ccp might be a lesser burden if capital needs to be reserved for bilaterally traded derivatives. in addition, the requirements for banks to use internal models for calculating capital requirements for derivatives will be tightened. this proposal also includes a reconsideration of the zero risk weight for ccps, even when the ccp complies with international standards. ccps will become systemically important, as more and more derivatives will be cleared through ccps. there will be a concentration of risks on ccps. therefore, the basel committee also proposes to increase the capital charge for exposure on ccps [ the current charge for ccps is 0 % ]. the capital charges will be calibrated in such way that the incentive to use ccps will be preserved. the establishment of an international dispute resolution facility that contributes to legal certainty in the otc derivatives markets, fits well in a broad range of initiatives to enhance financial stability. dnb therefore welcomes

and it is unprecedented. i am sure i have left you in no doubt as to its urgency. so the benefits of us working together to share experience and build practical guidance are monumental. we have now reached the point that we need to move. move from bold statements to boring but crucial details. from sweeping visionary speeches to the nuts and bolts of the technical eng ine rooms of central banking and prudential supervision. when we ’ re knee deep in the weeds with these details, we could easily be distracted from our ultimate destination. we can easily become preoccupied by the bushes we cut away, the path we ’ re finding, the progress we make. but we should never take our eyes off our ultimate destination. it ’ s not a question of being satisfied with taking a few steps forward. no. we need to actually get to where we want to go. getting to paris. on time. that ’ s where we wan t to be. this means a lot of work from you. the hard core technical part has started. the part where the economists and econometrists deliver. although you may be experts in the economy rather than ecology, your expertise is equally valuable in both fields. i assure you. yet climate change is not the only challenge we face. the world will need fresh water. a decline in biodiversity could limit the operations of businesses in a specific region. these risks too, could affect financial institutions. i am pleased to see that these other environmental risks are also appearing on our radar. fout! onbekende naam voor documenteigenschap. the next step we need to take, and soon, is to dedicate more resources to environmental risks and how they have impact on our work. a lot still needs to be done. i hope today will inspire you to be bold, think freely, stimulate each other, embrace competition and expand our horizons. because next year, when we gather again, i hope we will be making the same swift progress. i hope we will be able to show how we have put these six recommendations into practice. and i hope we will have explored new territories with new members. because with your help, the seeds that were planted here in paris will grow even further and flourish. because there is no limit to what countless hands, what humanity, can achieve. when working together, with a commonly held belief in a shared objective.