equity derivatives markets. they were first suggested by the brady task force, and they are one of the more notable recommendations of that report. as stated in the report, the purpose of this ( and the other recommendations ) was “ [ t ] o help prevent a repetition of the events of mid - october and to provide an effective and coordinated response in the face of market disorder. ” circuit breakers are widely cited today as one of the successes of the crash post - mortems. but i, for one, question this evaluation. circuit breakers have never actually been triggered, in contrast to some of the so - called “ speed bumps ” which affect particular trading strategies and are now tripped routinely. ( in contrast to circuit breakers, which are coordinated across the equity and derivative markets, speed bumps are trading restrictions that have been put in place by individual market places. ) if circuit breakers have never been used to halt trading, it follows that we have never had the experience of trying to re - start trading either. to an economist such as myself, some of the scariest times during the market crash were those in which trading was not occurring. our tendency to worry more about stopping trading than re - starting it is mystifying. ( i realize that there has been some discussion about the rules for the resumption of trading but the overwhelming attention has been on the halt. ) recent re - assessments of circuit breakers have focused on increasing the magnitude of price declines necessary to trigger coordinated trading halts. if we are going to continue having circuit breakers, i am supportive of this action and feel that a periodic evaluation of circuit breakers is valuable to ensure that trading halts only occur during very unusual market conditions. nonetheless, i think that we also should broadly re - evaluate circuit breakers in light of current market conditions. are circuit breakers fulfilling the goal articulated by the brady task force of providing an effective and coordinated response in the face of market disorder? do circuit breakers continue to be the best public policy response to market volatility? many features of financial markets have changed over the last ten years, not least of which is the continuing growth in international activity. circuit breakers are much more difficult to impose when trading activity can move to markets that do not participate in the trading halt. as i noted earlier, one of my main concerns is the restarting of trading following a halt. if liquidity has moved to over - the - counter markets or foreign venues, how does one get that liquidity back in the domestic

of the market share ; turning to bank of uganda, i wish to re - affirm that as a monetary policy and regulatory authority, the mission of “ maintaining price stability and a sound financial system ” remains paramount. on the monetary front, the recent unfolding inflationary pressures have been proactively responded to using a package of instruments, which include ; i ) pursuing a tight monetary policy stance to regulate money supply ; ii ) tactical interventions into the foreign exchange market to manage and minimize sudden fluctuations in the exchange rate ; on the regulatory front, the following have been applied to ensure soundness and stability of the financial sector : i ) conducting regular on - site examinations and off - site surveillance of supervised financial institutions in order to initiate prompt corrective actions as warranted ; ii ) enhancing risk management framework in all supervised financial institutions ; iii ) implementation of risk - based supervision to foster timely identification, measurement, monitoring and controls of risks inherent in the financial sector ; iv ) periodic reviews of the legal and regulatory framework to ensure update with current developments in the financial sector ; v ) aligning the regulatory framework with international standards especially after the recent global financial crisis ; vi ) to facilitate innovation through amendment of the legal and regulatory framework to permit the following : i ) implement mobile money banking ; ii ) bancassurance ; iii ) islamic banking & finance products. rolling out guidelines for financial literacy and consumer protection. bis central bankers ’ speeches