london. nonetheless we have our contribution to make, and our uk partners have always been welcoming in hearing it. and this has to be because there is so much in common today, in the modern world. the ties that bind are not just history. they extend beyond a fascination and affection among australians for the royal family – strong though that is – or the longcontested rivalry between “ old enemies ” for one of the world ’ s smallest sporting trophies. there is a real sense in which the uk and australia share an outlook, at a very basic level, on how an economy should be organised and governed. they share a perspective on the role – and the limits – of markets in setting prices and allocating resources. they share a commitment to a world economy in which trade is free and capital, in general, is free to move. we have had some differences of nuance in recent years about matters financial, reflecting mainly our differing experiences of the crisis, but in the broad the perspective of the role of the financial services sector in facilitating the real economy is very much shared. the business communities of the two countries have strong links, evidence for which is your attendance here today. i ’ m sure that this association will continue to strengthen and mature over the years ahead, even though the two countries are at opposite ends of the globe. perhaps the most important thing the two countries have in common is the strong belief that societies prosper when policies are debated in an open way, when evidence, reason and judgement can be brought to bear on decisions, and where accountability and evaluation are key attributes of the process. imf world economic outlook, october 2013 ; figure is for 2012. bis central bankers ’ speeches that set of commonly held values will be important for us over the year ahead, as australia assumes the chair of the g20. what issues will be on the agenda? and how can the business communities of the two countries contribute? the full agenda is of course for the australian government to determine, in consultation with other g20 member governments. it will certainly have a strong focus on growth, and on the role of the private sector in driving growth, including its role in infrastructure investment. so i expect there will be significant call for engagement of the business communities of australia and the uk, and other member economies, over the year ahead. i will make just two points here. first, in the area of financial regulation, there is a major agenda for reform, on which very good progress has been

to develop solutions that will address issues in comparing information across different disclosure documents and facilitate access to disclosure information. the gfxc is also considering reviewing the code ’ s principles in light of the ongoing adoption o f algorithmic execution ( ‘ algos ’ ) in the fx market. it is estimated that between 10 and 20 per cent of fx spot trading globally is accounted for by execution algos. usage of these algos can improve market functioning but they also introduce risks. so as elsewhere, the issue is how well understood these things are by market participants and whether the disclosures made by providers are adequate. disclosures surrounding algos are often high - level. while there may be legitimate reasons why providers don ’ t disclose certain things ( such as intellectual property ), it ’ s nevertheless important that users have sufficient information to facilitate comparability amongst these instruments. another area where the fx market has continued to evolve is the increased usage of anonymous trading. as part of its code review, the gfxc has a workstream looking at this aspect of the market, the roles played by venue providers and prime brokers, and whether the 3 / 4 bis central bankers'speeches issues that can arise with this form of trading are adequately addressed in the code ’ s principles. fx settlement risk one aspect of the market that the gfxc has been focussing on its recent meetings is settlement risk. when conducting their triennial survey of the global fx market last year, the bank for international settlements expanded the scope of their survey to include data on settlement methods. 5 the bis data suggested that the amount of trades being settled without payment - versus - payment ( pvp ) protection remains very significant and has increased. there could be several reasons for this trend and further work is being done within the industry to understand the drivers. part of the explanation is that the overall share of activity has increased in currencies that are not settled through cls – the main means for obtaining pvp protection. in cls currencies, it is possible that greater rates of internalisation by market - makers means that settlement risk is being mitigated without needing to use pvp services such as cls. many central banks conduct regular six - monthly surveys of activity in their markets – a slimmeddown version of the bis triennial – and these central banks are enhancing their regular surveys to also capture data on settlement methods, so that we can better monitor what is going on. the importance of this issue