reserve bank of fiji _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ address by governor of the reserve bank of fiji barry whiteside at the listing of free bird institute limited on the south pacific stock exchange venue : intercontinental hotel, natadola, 2 february 2017 mr hiroshi taniguchi, chair and chief executive officer of free bird institute limited the board and management team of free bird institute limited dr nur bano ali, chair of the board of the south pacific stock exchange ms latileta qoro, chief executive officer of the south pacific stock exchange members of the capital markets industry members of the media invited guests, ladies and gentlemen introductory comments ni sa bula vinaka, “ konnichiwa ” and a very good morning to you all! i am delighted to be here today to officiate in the listing of free bird institute limited on the south pacific stock exchange. i understand that it has been the founding shareholder, mr taniguchi ’ s dream to see his company listed on a stock exchange so i congratulate the institute for its perseverance in meeting all the necessary requirements for listing. less than a year ago, we witnessed the listing of vision investments limited ( vil ) and i noted at the time that it had been 5 years since there was any previous activity on the exchange. it is certainly pleasing to now see a second listing in less than a year. i feel this reflects the increasing acknowledgement of the benefits to be derived from participating in our small but developing stock market. background ladies and gentleman, free bird institute limited is a company with its own unique business intentions and a true visionary in mr taniguchi at the helm. i came to know about this gentleman several years ago when a reserve bank team comprising myself, some board members and our economics team came out west on one of our “ meet the industry ” trips. i was intrigued by the name of the institute and indicated to my team that we must make it a point to meet them. what did they do and where did the name “ free bird ” come from? clearly it had nothing to do with poultry distribution as i soon found out!! incidentally that west trip did include a visit with the rooster chicken people as

. in 2010, the committee on payment and settlement systems ( cpss ) and the international organization of securities commissions ( iosco ) initiated a complete review of their risk - management standards. the goal was to make the standards consistent with current best practices and to reflect the experience of authorities in applying them, taking into account lessons learned from the financial crisis. the resulting principles for financial market infrastructures were finalized last year. the new standards are considerably more stringent than the previous ones and sharpen the focus on the control of systemic risk. they place a stronger emphasis on governance, and require fmis to have comprehensive risk - management frameworks in place and to hold substantially more financial resources. the bank of canada has adopted these principles and will apply them to the fmis that it oversees. 8 all fmis – including those in canada – will need to make improvements to their riskmanagement practices to meet the new standards. at the moment, each designated fmi is the big five canadian banks are direct clearing members at swapclear. in addition to cdcs, the bank oversees the large value transfer system ( lvts ), canada ’ s main electronic funds - transfer system ; cdsx, canada ’ s securities settlement system and central securities depository ; and the canadian - dollar leg of cls bank, which is a global payment system for the settlement of foreign exchange transactions, including those involving the canadian dollar. bis central bankers ’ speeches undertaking a rigorous analysis of its practices against the new principles, identifying gaps and developing plans to address them. the bank and other canadian regulators are working closely with fmis to ensure timely compliance. what this means for participants, for you and your firms, is that there will be changes in the fmi ’ s risk - management practices as they move to meet the new standards. new riskmanagement practices will mean higher costs for fmis which will have an impact on participants. in some cases, there will also be higher collateral requirements, but there will be greater assurance that transactions are carried out according to the wishes of participants, in good times and in bad. fmis will inform their participants of upcoming changes as they work out the details. we are on our way, but we ’ re not there yet so where does this leave us? emerging from the crisis, a key element of international reforms to strengthen the financial system was to reinforce fmis. the goal is to reduce systemic risk and keep essential markets continuously open. in canada, we have made much