in order to enhance its effectiveness, the fsb, represented at this workshop by mr rupert thorne, deputy secretary general, is now seeking to incorporate a broader range of participants into its activities. for example, it has created regional consultative groups that bring an additional 70 countries into the policy discussion. in a similar vein, emerging and developing countries are represented on the committees of the basel committee on banking supervision, and the basel consultative group was established to facilitate a broad dialogue with non - member countries. but there is no such thing as a free lunch. those of us from emerging market and developing countries, who participate in the international standard - setting bodies, where financial regulatory reforms are discussed, now have an obligation to use our voice in these forums in a responsible manner. this means that we need to be actively engaged in meetings, be ready to take constructive positions on the various items on the reform agenda, including on otc derivative reforms, which positions are supported by solid research, and convincing arguments. we also need to pay due regard to the concerns of both those emerging markets and developing countries that are participants in these meetings, and those that are not at the table. we have previously witnessed how putting forward well - reasoned positions can have positive outcomes. for example, south africa, together with other emerging market and developing economies helped to bring about refinements to certain elements of the liquidity coverage ratio ( lcr ) under the basel iii framework. based on research, including our participation in the financial stability board ’ s “ study of effect of regulatory reforms on emerging market and developing economies ”, which clearly demonstrated the potential adverse, albeit unintended, consequences of some elements of the proposed lcr, the standard - setting bodies recognized that the lcr required refinement. the revised lcr standards were announced in early 2013 and they accommodate the concerns of jurisdictions, like ours, which have a shortage of adequate high quality liquid assets as defined. similarly, the combined efforts of affected countries, including emerging markets, are making progress in reviewing the net stable funding ratio ( nsfr ) proposals, and ensuring that any unintended adverse impacts bis central bankers ’ speeches are limited. the proposed otc derivative reforms, particularly the role of central counterparties ( ccps ) in derivative markets, is another topic that runs the risk of undermining one of the core objectives of the rule - making bodies, namely global parity. fortunately, the fsb appreciates that international regulatory standards can have unintended

daniel mminele : otc derivatives reform – lessons from the financial market regulatory reform process closing remarks by mr daniel mminele, deputy governor of the south african reserve bank, at the 2013 emerging markets dialogue on otc derivatives reform, johannesburg, 12 – 13 september 2013. * 1. * * introduction good afternoon ladies and gentlemen. thank you to the deutsche gesellschaft fur internationale zusammenarbeit ( giz ) and the federal ministry for economic cooperation and development ( bmz ) for inviting me to deliver the concluding remarks at the end of the two - day workshop of the emerging markets dialogue on over - the - counter ( otc ) derivatives reform, as well as for sponsoring this very important and topical event. i would also like to extend my thanks to our co - hosts, namely the national treasury, in particular deputy minister nene, and the financial services board through deputy chief executive officer bert chanetsa. last but certainly not least, i would like to thank the many staff members from all organisations co - hosting, who have contributed to the organization and success of this event. unfortunately, i have not had the benefit of listening to the various panel discussions and what i am sure were thought - provoking comments made by the various speakers over the last two days. therefore, to avoid the risk of repeating what others may have said, i thought i would take a broad approach to the subject and offer some thoughts on the lessons that emerging market and developing economies can draw from the financial market regulatory reform process that has taken place over the past 5 years and how this can be applied to the otc derivative reform process. 2. the headwinds were strong and remain strong in washington in 2008, the g - 20 committed to fundamentally reform the regulation of the global financial system. the objective was to correct the regulatory failures that in part contributed to the global financial crisis, and to build a safer, more resilient financial system that could better serve the needs of the real economy. this global financial regulatory reform process began, and continues to be undertaken, in a period which is characterized by subdued economic growth, elevated unemployment levels, and volatile financial markets. in these extraordinary circumstances, policy makers have resorted to non - conventional measures both on the monetary and fiscal policy side and have tried to balance the competing short - term need to promote economic growth and create jobs with the longer term imperative to construct stable financial systems and achieve sustainable growth paths and healthy public finances. despite this complex