listened to industry feedback on this point and engaged extensively at a european level in relation to it. as a result, we will be converging our approach with other fund domiciles and will shortly update our ucits q & as to clarify the position. in future, the ucits etf identifier can be included at the level of a sub - fund or a share class. this will provide greater clarity for fund managers and investors, particularly where the fund has both listed and unlisted share classes. future let me now turn to the future of etfs. i would like to discuss how technology will factor into the development of the sector and how retail investment can be better harnessed in europe. it is clear that technology will continue to be a big driver of change for the etf sector. as technological advances are made, we should see the etf ecosystem become more efficient. for example, tokenisation is something which has the potential to speed up settlement cycles and increase efficiency and liquidity of trading in assets. in addition to this, there are potential benefits to investors in terms of ease of access to financial products and lower costs. at the central bank, we are supportive of understanding how tokenisation and related technology can bring benefits to both firms and investors. at an international level, engagement is ongoing with policy makers to assess financial asset tokenisation and its associated risks and challenges. we have engaged with the funds industry to explore pathways and the potential of tokenisation for investment funds, in particular to understand how tokenisation will sit within the existing regulatory framework. we look forward to continued engagement with industry on this topic as the sector and the technology evolves. collaboration between industry and policy makers will be essential to moving this forward. advances in digitalisation will also lead to efficiencies and benefits for firms and investors. one of the benefits is that it allows easier access for investors to financial products, in particular retail investors. we have seen a rapid evolution in terms of distribution methods. this opens up possibilities both for managers and for retail investors. managers are gaining access to new target markets, while investors benefit 3 / 6 bis - central bankers'speeches from a multitude of different investment options. any one of us can use our mobile phones to gain immediate access to a large range of different asset classes. and while we acknowledge that there are many benefits to easier retail investment access, it is not without its risks and challenges. we must consider and keep pace with the evolving manner in which

or in different market conditions. • capital ratios don ’ t incorporate the impact on a firm ’ s ability to generate revenues during stress periods – and thus don ’ t indicate a firm ’ s ability to rebuild capital as necessary. • so, clearly, stronger capital standards need to be combined with a better ability to anticipate the future – to incorporate a more forward - looking element into assessing the financial strength of a firm. thus, supervisory and risk management tools need to expand to include stress testing – and from this came the supervisory stress test and resulting federal reserve capital rule and the requirements in dodd - frank for stress testing. i think it ’ s fair to say that the new capital rules will and should change how firms think about risk within their organizations. whether it ’ s the increases in risk weights of certain types of exposures, or the overall imposition of leverage constraints, the new capital rules are designed to build a more resilient financial system that is better prepared to handle and weather the next crisis. the capital requirements for large banks are supplemented by a liquidity framework. thinking back to the financial crisis it ’ s fairly clear from the experiences of most firms during that period of time that liquidity was essential in survival. those firms that didn ’ t have sufficient liquidity suffered greatly. here, too, the basel committee has played an important role in developing and implementing an internationally - agreed - to - framework for enhancing liquidity across large international firms. the new framework currently includes a short - term requirement – the liquidity coverage ratio ( lcr ) and discussions are underway to include a longer - term requirement – the net stable funding ratio ( nsfr ). while capital and liquidity rules for large financial institutions are in the process of being implemented – and significant progress has already been made in bolstering levels of both capital and liquidity in banking organizations – there are still areas within the financial system where additional focus on building resilience continues to evolve. in particular, enhanced risk management standards for financial market utilities have been adopted by international bis central bankers ’ speeches standard setters and, in the u. s., the agencies have recently proposed new rules to adopt these standards for u. s. firms. among these new standards are expectations that financial market utilities, including those that act as central counterparties ( ccps ), be more resilient to shocks – with a particular focus on enhancing liquidity and liquidity risk management. while ccps reduce aggregate risk, they