sector internationally is broadly guided by two objectives : prudential regulation and conduct of business regulation, including consumer protection. the four key institutional frameworks for regulation of the financial sector internationally – institutional approach ( entity - based regulation ), functional approach ( activity - based regulation ), integrated approach ( universal regulator model ) and twin peaks approach ( separation of prudential regulation and conduct of business regulation ) – all attempt to address the above objectives through different formal structures. post - crisis, a new dimension of “ systemic stability ” is being sought to be added as another objective of financial sector regulation but the exact contours in this regard are still in the works. 5. financial markets in india have evolved, as has the regulatory framework for them, historically in the context of a primarily bank - dominated financial system. it was only after the financial reform process was initiated in the early nineties and the regulation of banks started getting aligned to the international best practices that gradually different market elements were introduced as part of the market development agenda. this agenda focused, first and bis central bankers ’ speeches foremost, on putting in place the requisite market microstructure in terms of institutions, technology, market participants and appropriate regulations. 6. study of the development of the financial markets in india provides an opportunity to analyse an alternate and, more importantly, functioning model of regulation of financial markets. it may have evolved out of legacy factors and contextual considerations but in terms of regulatory orientation, this approach contained many elements of a “ systemic focus ” as is being sought to be incorporated globally in the post - crisis scenario. the instruments and objectives entailed balancing the given systemic imperatives with the need for bringing about changes in a non - disruptive manner. the major elements implicit in the regulation of different market segments included the following : • nature of participants in the markets ; • broad specification of products to be permitted ; • effective reporting systems for capturing systemic information ; and • market infrastructure 7. the absence of an efficient “ bond - currency - derivative ” construct, so called bcd nexus, is sometimes held against the entire market development process. however, the conception of a synergistic, harmonized bcd nexus implies a perfect seamless market with enormous possibilities of risk - payoff combinations using some basic instruments. implicit behind it is the efficient market hypothesis which itself is being reinterpreted. though it might seem that the efficient market hypothesis was one of fundamental, sacrosanct tenets of

jean - claude trichet : adoption of the european parliament resolution on the ecb ’ s 2009 annual report introductory statement by mr jean - claude trichet, president of the european central bank, at the plenary of the european parliament on the occasion of the adoption of the european parliament resolution on the european central bank ’ s 2009 annual report, strasbourg, 22 november 2010. * * * monsieur le president, mesdames et messieurs les membres du parlement europeen, j ’ ai l ’ honneur de vous presenter – comme le prevoit le traite – le rapport annuel 2009 de la bce. du fait du calendrier legerement bouleverse par les dernieres elections europeennes, c ’ est en mars dernier que j ’ etais intervenu devant vous pour vous presenter le rapport annuel 2008. c ’ est donc la deuxieme fois cette annee que j ’ interviens devant le parlement au sujet du rapport annuel. permettez moi tout d ’ abord de me feliciter du soutien, exprime une fois encore par la proposition de resolution du parlement europeen, en faveur des auditions regulieres devant la commission econ et plus generalement en faveur du maintien de relations etroites avec la bce. je m ’ en rejouis d ’ autant plus que cette annee, le parlement europeen a demontre avec force sa volonte et sa capacite a faire prevaloir l ’ interet superieur europeen, notamment sur le paquet de supervision financiere. ich werde ihnen zunachst einen kurzen uberblick uber die geldpolitischen maßnahmen der ezb wahrend der finanz - und wirtschaftskrise geben. uber die krisenzeit hinaus mochte ich auch auf die leistung der ezb wahrend der ersten 12 jahre zuruckblicken. schließlich mochte ich auf die dringendsten herausforderungen, die uns im jahre 2011 erwarten, eingehen. actions taken by the ecb during the crisis 2009