gfxc ’ s working groups, which were instrumental in developing the new material. the recommendations of the working groups were reviewed by the gfxc ’ s member committees and published for public feedback. after careful consideration of the feedback, the gfxc released the updated code last month. some key changes to the code in total, 11 of the code ’ s 55 principles have been amended. i won ’ t go through all of the changes today. there is a summary on the gfxc ’ s website that steps through these. 2 what i would emphasise is that the driver for many of the changes is the need for greater disclosure and transparency in an increasingly complex market. 1 / 4 bis central bankers'speeches one area where the market has grown more complex is the methods of execution. use of execution algorithms by fx market participants has increased significantly. the gfxc ’ s view is that the market would benefit from more detailed disclosures about these algos, as well as greater uniformity in the disclosures. this echoes recent findings by the bank of international settlements ( bis ) markets committee that high - level and non - standard disclosures were making it difficult for algo users to compare different providers and make informed decisions. 3 some sophisticated clients may be able to overcome this problem, but it has not been conducive to market efficiency. consequently, the code has been updated to provide more guidance on the minimum set of information that algo providers should be disclosing. in addition, the gfxc is encouraging providers to make their disclosures in a standardised format. accordingly, the gfxc has developed an algo due diligence template that market participants may use, as appropriate. this is available on the gfxc ’ s website. as the use of algos increases, it is important that market participants are able to evaluate their performance. but the barriers to conducting meaningful analysis on algos can be high. for this reason, the gfxc believes that transaction cost analysis ( tca ) would benefit from greater harmonisation of data reporting. at the session on tca later this morning, i ’ m sure there will be some discussion of those challenges and how they might be overcome. the gfxc ’ s view is that standardised information could be particularly helpful for less sophisticated clients or those with limited resources. recognising this, the gfxc has also published a

guy debelle : the financial situation three years on speech by mr guy debelle, assistant governor ( financial markets ) of the reserve bank of australia, at the westpac macro strategy forum, sydney, 9 september 2010. * * * thanks to patrick d ’ arcy, megan garner, crystal ossolinski and andrew zurawski for their help. it is now a little over three years since the onset of the financial crisis in august 2007. since that time, financial markets have varied substantially in terms of pricing, volumes and functioning. conditions in global markets now are markedly improved from their dire position in the last quarter of 2008. markets have not returned to their pre - 2007 state, but that is generally a good thing as those conditions were not sustainable ( as indeed they proved not to be ). notwithstanding this, conditions in some markets remain somewhat fragile, reflected in still elevated volatility. in part, i think this is because the events of 2008 are a recent memory and practitioners now know how to retreat rapidly, instead of this process taking over a year as occurred between august 2007 and september 2008. we saw some evidence of this back in may this year. what i intend to do today is talk about the state of play in financial markets, focussing primarily on the foreign exchange market and the domestic bond market. i will focus on structure and functioning and how these have changed over the past three years. throughout the period, australian financial markets have generally operated with less dislocation than those in other parts of the world and that remains true today. foreign exchange the foreign exchange market has been amongst the most resilient of markets throughout the financial crisis. indeed, its resilience and the increasing attractiveness of foreign exchange as an asset class have seen many financial institutions expand their staffing in this area, even while they have been shrinking elsewhere. the most recent data published by the foreign exchange committees in the major markets confirm this view. turnover in these markets has increased by 30 per cent from the lows of early 2009, to be above its pre - crisis levels ( graph 1 ). the same picture can be gleaned from the just - released bis triennial survey which shows global turnover averaged us $ 4 trillion a day in april 2010, 20 per cent higher than in april 2007. by market, this growth has been broad - based. the uk, which is the largest market, experienced slightly above - average growth while market share declined in the rest of europe. the australian