current efforts to address these deficiencies because i know that you have discussed them during the past two days. however, i wish to emphasize that although these regulatory reforms have been primarily designed to respond to the needs and dynamics of the derivative markets in advanced economies, regulators in emerging market and developing economies will be required to comply with these rules if they wish their markets to be accepted as part of the global financial system. while this is understandable and we fully intend to comply with the final rules, it is important to recognize the challenges present in our own markets. one benefit of forums like this one is that it enables participants from emerging markets to meet and exchange views on otc derivative reforms. this is important for a number of reasons. firstly, while, it serves the global interest to achieve standardization in derivative transactions ’ contracting, pricing and documentation, it is also important to make sure that the interests of all stakeholders are adequately addressed in the ways these transactions are standardized. if emerging market and developing countries do not have opportunities to discuss these matters, with appropriate attention to all the technical details, amongst bis central bankers ’ speeches themselves, this is less likely to happen. second, we all have a vested interest in derivative transactions that are transparent and as safe as possible. in principle, this can be most easily achieved through standardized transactions executed through central counterparties and reporting to trade repositories. in practice, however, not all countries derivative markets are big enough to support the necessary market infrastructures. as such, they would require more flexible approaches to otc derivatives than is the case in the larger advanced economies. this suggests that there is a need to collaborate on developing regulatory proposals that are appropriate to our conditions. if we do so, and can undertake the research and preparations needed to develop the arguments to support our preferred approach, i am confident, based on past experience, they will receive a fair hearing and where appropriate, will be incorporated into the current international proposals for regulating otc derivative markets. 5. conclusion in many ways, financial markets in emerging market and developing countries are still developing. the benefits that derivative markets offer and the challenges they bring, therefore, are not necessarily comparable with the benefits and challenges applicable to advanced countries. in addition, the benefits and challenges associated with derivative markets in specific countries may differ due to our markets ’ differing stages of development. for this reason it is valuable for us to be able to share views and exchange experiences and to learn from each other. i hope that you all

banks ), anti - corruption measures, etc. ; and growth that is centered on human development ”. whether a country is large or small, a financial crisis can become systemic through contagion on the globalised markets. the domestic economic policies of the major industrialised countries have in recent years increasingly taken into account their potential worldwide impact. this duty of universal responsibility is also becoming important for all countries, large and small. as globalisation progresses, all countries take a measure of responsibility for the stability of the international financial system and the quality of world growth. this adds commitment and responsibility that are required of every government in the management of their economies. globalisation also concerns the worldwide integration of financial markets. therefore active participation in this integration process implies that monetary and fiscal policies have to be subjected to the disciplines of the international market. globalisation mercilessly exposes the shortcomings in national economic policies in countries that do not apply the universal “ laws ” for prudent macroeconomic management. the process of globalisation accentuates the pressure for change and for greater coordination and harmonisation of economic policies. the world bank, imf, oecd and other international organisations are encouraging countries to discover what the consequences are of the circular relationship between the integrity of monetary and financial management, high - quality growth, and poverty reduction. without poverty reduction, the first two have little chance of enduring, and without the first two, any efforts to reduce poverty will take longer and be less successful. 3. south africa ’ s re - entry into the global economy since 1994 south africa has introduced major changes to domestic political, social and economic structures. after years of apartheid - induced isolation from the global economy, countries lifted sanctions and companies ceased disinvesting from south africa. profitable opportunities were opened up for south africa to reintegrate its economy into the global economy. south africa ’ s integration into the global economy had important implications for the south african banking sector. the official policy has been to open up the south african banking sector to foreign participation, and to expose south african banking institutions to foreign competition. as a result of this policy, 15 foreign banks have registered branches in south africa and 60 foreign banks do business in the country through representative offices. the south african banking sector remains sound and well - managed. some mergers are taking place in line with world trends, and the 35 domestic banks are rationalising their activities to face the challenges of globalisation. the four big banks in south africa have