to continue to work very actively on all of its work streams regarding the regulation of the non - banking sector. this includes regulatory reform of money market funds, securitisation and the interaction with the banking sector. i am looking forward to the progress report to be delivered for the g20 meeting in october. further regulatory challenges in a number of key domains, decisions have been taken by the international community. it is no time to challenge them. it is time to implement. in a crisis period where confidence is of the essence, it would be extremely damaging if the authorities were to hesitate, demonstrate an absence of resolve and of the fortitude that is required by the circumstances. i see resistance of some in the financial sector against basel iii. i see similar messages on the sifis. for me, it is crystal clear : what has been decided is decided. but there are other areas of regulatory reform where work is still underway. let me briefly highlight two key areas on which we need to stay committed and where swift progress is of the essence. first, there is the review of the markets in financial instrument directive ( mifid ), on which a proposal is expected to be released by the european commission this autumn, will represent a key step in the right direction. amending the mifid should enable the eu regulatory framework to keep pace with financial innovation while responding to the g20 commitments to deal with less regulated and more opaque parts of the financial system. second, it is key that transparency is enhanced across the board : with regard to markets, institutions and products. lack of information contributes to the mispricing of risks, mistrust among market participants can turn situations into downturns. in order to build confidence and contribute towards the stability of markets it is important that financial innovation and technological advances contribute to the ability of financial markets to sustainably provide financial services to the real economy. we need to establish a harmonised framework that enables coordinated action, increases transparency and reduces the risks posed by these market practices. moreover, we need to better identify, monitor and assess the potential threat to market stability posed by high frequency trading. the iosco consultation on regulatory issues raised by the impact of technological changes on market integrity, carried out in response to a g20 leaders request during the seoul summit in 2010, recalls that “ the benefits from technological advances should not bis central bankers ’ speeches overshadow the risks that these innovations pose to the efficiency and integrity of markets. these changes raise issues

benoit cœure : interview in el financiero interview with mr benoit cœure, member of the executive board of the european central bank, in el financiero, conducted by ms leticia hernandez moron, and published on 4 november 2015. * * * how can the financial system be kept stable amid divergent monetary policies? monetary policies in advanced economies are indeed set on different courses as a result of different positions in the business cycles. the united states is at a more advanced stage in the cycle compared with the euro area, where the policy is and will remain more accommodative. in view of the current volatility on the global financial markets, it is vital that these different paths are not in themselves a source of instability. i think the key word here is transparency. as central banks, we need to be as clear as possible about what we are thinking and heedful of the financial reaction. in the case of the ecb we introduced forward guidance in 2013, we have been very clear about the path of accommodative policy due to the economic situation, and we have been specific about the downside risks in the scenario, particularly at the ecb ’ s most recent meeting in malta. the governing council saw an increased risk that inflation would stay too low for too long, and concluded that additional monetary policy reactions could be warranted, should this risk materialise. thus transparency is the key word. what are the side effects of the ecb ’ s monetary policy outside the euro area? we are mindful of the impact of our decisions on the rest of the world, and in particular on neighbouring economies. but our mandate is limited to the euro area and in the end, the best contribution that we can make to the global economy, also to neighbouring economies, is to make europe as robust and stable as possible. how have you handled the effects of the monetary policy of the us? the decisions taken by the ecb are based on the region ’ s economic and financial situation and do not specifically follow any adjustment made in the united states by the federal reserve system or in any other part of the world. we ensure that the financial conditions in europe are appropriate for the economy. what measures have to be taken to manage the risks of greater global financial integration without losing the benefits that it brings? volatility is currently high in global capital markets, due to macroeconomic uncertainty and changing business models. in such an environment, policy