christian noyer : financial stability review “ otc derivatives : new rules, new actors, new risks ” speech by mr christian noyer, governor of the bank of france and chairman of the board of directors of the bank for international settlements, at the launch of the latest issue of bank of france ’ s financial stability review on “ otc derivatives : new rules, new actors, new risks ”, new york, 22 april 2013. * * * i am very happy to be with you today to launch the latest issue of banque de france's financial stability review on “ otc derivatives, new rules, new actors, new risks ”. as you know, every year since 2002, our review has brought together contributions from prominent academics, practitioners and policy - makers from all over the world on a topical issue. i warmly thank all the contributors who have enabled us to produce a review, of great interest, thanks to their papers of exceptional quality and density. i cannot mention all of them and only some authors are with me today ; [ but you can find all articles in the online and paper versions of the review, copies of which are available on tables at the back ]. those contributions are very diverse, or even divergent, in their analysis and proposals. that ’ s how we want it. it is clear we don ’ t necessarily share the views expressed in the articles but we all believe in the exchange of ideas. for introducing this fsr, we are extremely fortunate to gather an exceptional panel : • an outstanding us lawmaker : senator dodd, thank you, it ’ s a privilege to welcome you today ; • a prominent regulator : paul tucker, deputy governor of the bank of england, in charge of financial stability. paul, you also chair the basel committee on payment and settlement systems and co - chair the cpss / iosco steering group on central counterparties : your views on the subject are particularly sharp ; • two top market practitioners : michael bodson, president and ceo of dtcc and craig overlander, ceo of societe generale americas. you will provide us with the “ insider ” vision. • a distinguished academic, who specialized notably on counterparty risk and otc derivatives : manmohan singh, from the imfthank you all for being with us today. as you know, for our fsr issues, we always try to pick up topics which are both analytically complex and relevant to current policymaking. this is clearly the case with this issue

and the real conditions under which transactions take place. 2. meanwhile due attention should be paid to an adequate calibration of the framework. the development of multiple concomitant regulations ( capital, liquidity etc … ) calls for a perfect coordination. we cannot pile up these different approaches without assessing their impact and the costs incurred for the market and the public. this is a particular concern when considering the collateral requirements that stem from the different regulations. 3. last but not least, we need to promote a consistent framework. consistency has several sides • consistency across jurisdictions : it is vital as most players on otc derivatives are global actors : we need to minimize the incentives for regulatory arbitrage ; • consistency with respect to the localization of market infrastructures, which should remain coherent with respect to the currencies traded : infrastructures should be under the direct reach of the central bank concerned by the systemic risk attached to the clearing of large positions in a given currency ; • consistency regarding the different types of players / counterparties : in order to prevent the move from regulated spheres to unregulated ones, we need to set up a framework where financial innovation, a key factor for economic growth, continue to develop in regulated spheres, and benefit from appropriate risk regulation. bis central bankers ’ speeches i will not dwell further on these topical issues, which are about to give rise to a fascinating discussion. it is my hope that we can collectively contribute to enlighten the policy debate. let me now give the floor to our panelists. bis central bankers ’ speeches