in the single financial market. some initiatives were started before the crisis and are still in progress. others have been launched since the outbreak of the crisis. i would like to briefly mention just some of these important developments. first, europe ’ s new supervisory structure, based on the european systemic risk board and the three european supervisory authorities, is a major step forward in ensuring that the financial system as a whole is supervised in a more harmonised and coherent fashion. it reflects the full acknowledgement that the externalities deriving from the financial system are no longer national. they are increasingly interconnected across the european market and beyond. second, there is also a new set of new legislation to reform financial markets. it is a comprehensive package covering not only the trading level, but also – for the first time – the infrastructures for clearing and settlement. nothing is being missed out. mifid – which deals with trading and investment services – is currently being updated. a new regulation on clearing houses – called the european market infrastructure regulation ( emir ) – is also bis central bankers ’ speeches being proposed. the objective of mifid and the emir is not only to make markets safer, sounder and more transparent in the wake of the financial crisis ; they also aim to create a level playing field in europe, to remove barriers to competition, and ultimately, to strengthen the financial market integration process. on the settlement and issuer services side, a proposal for a new legislation on csds is expected soon. this will help to ensure a level playing field between the different business models operating across europe. and on the custody side, the proposed securities law directive will also help provide legal certainty and facilitate cross - border business. t2s fits extremely well into the financial market reform process. it very much complements the regulatory initiatives being pursued by the european authorities to significantly strengthen the single financial market and its infrastructure. t2s will – for the first time – create a single market in the settlement services space. combined with legislation on csds and ccps as well as mifid, t2s will stimulate a new competitive environment in post - trading. over the longer term, t2s will deliver significant benefits to the european economy. first, in t2s it will be as easy to settle cross - border transactions as domestic ones. this will enhance the ability of issuers and investors to reach across national borders. it will lower the cost of capital for issuers. it will allow investors to divers

. hong kong is one of the major international financial hubs in the world. it has an open and free business environment, sophisticated financial markets, well - functioning financial infrastructure, a vast talent pool, a sound legal system, and a regulatory system well aligned with international standards. it is the world's largest offshore rmb market. it is also asia's largest asset and wealth management center and 2nd largest center for hedge funds and private equity. the pboc is committed to supporting hong kong's role as an international financial center. we will continue to create an enabling environment for the rmb business in hong kong. we will continue to support hong kong's role as an international asset center and risk management center, and its goal to become a fin - tech and green finance hub in the asia - pacific region. we will continue to support hong kong's financial stability. we believe that, with all its strengths, a favorable policy environment and its talented and hard - working people, hong kong's standing as an international financial center will be further enhanced. finally, before i take up your questions, let me wish this conference a great success! 4 / 4 bis - central bankers'speeches