to cooperate properly. capital markets : the financial network the second key plank of the fsb ’ s existing programme has been to mitigate the complexity of the financial network. we do not just live within a world, a financial system of massive but independent firms ; we work in a financial system where everything is connected to everything else. that has been the case for long as i can remember. central counterparties the use of central counterparties in over - the - counter derivative ( otc ) markets is long overdue. but we will also need to ensure that these counterparties are robust. if ever a central counterparty fails, it will be a gigantic mess. two have failed significantly over the past 30 years : a relatively small one in paris, but the other was a significant one in hong kong during the 1987 market crash, which caused the hong kong equity and futures market to close. they were hard to reopen. and their securities markets and regulatory regime had to be completely overhauled as a result. 1 there are lessons to be learnt from past crises as we build stronger central counterparties. the basel committee on payment and settlement systems ( cpss ) and iosco are working on this. but we need to go further than that. we need to think – and we are thinking carefully – about how to put more of the otc market either on to exchanges or through trading platforms with greater transparency. in this particular area the united states is acting ahead of europe. that doesn ’ t matter. it is not a race and there is co - operation going on through iosco, with central bank support, that should reach fruition over the next few months in a report to the fsb. large exposures central counterparties are one way to mitigate the interconnectedness. another, complementary route would be regimes that are more attentive to the network of large exposures that exists between our banks and dealers etc. the eu has been taking a step forward internationally in applying large exposure restrictions to interbank exposures for the first time. this is a big step ; one that is welcome to the bank of england. the question i would like to pose is whether, globally, we should go even further in respect of large exposures amongst the largest institutions in the world. one of the greatest worries under stress is the size of the exposures amongst the biggest and most complex firms. bcbs are contemplating it. use of cra ratings in regulatory regimes we will also need to rev

24, 700, 000 worldwide 2, 000, 000, 000 worldwide 400, 000, 000800, 000, 000 us jobs 58, 164, 320 pwc no date us jobs 13, 594, 320 oecd no date uk jobs 13, 700, 000 ippr 13, 852, 530 13, 604, 760 forrester sciencealert 14, 900, 000 forrester thomas frey 555, 000, 000890, 000, 000 mckinsey source : mit technology review ( 2018 ) - https : / / www. technologyreview. com / s / 610005 / every - study - we - could - find - on - what - automationwill - do - to - jobs - in - one - chart / all speeches are available online at www. bankofengland. co. uk / speeches chart 6 : wage premium for cognitive skills real wage level of full time u. s. male workers relative to 1963 2. 0 high school dropout high school graduate some college bachelor's degree greater than bachelor's degree 1. 8 1. 6 1. 4 1. 2 1. 0 0. 8 sources : autor ( 2014 ). chart 7 : productivity levels relative to the us per cent 100 % 90 % 80 % 70 % 60 % 50 % aes 40 % emes 30 % 20 % world 10 % 0 % sources : penn world tables 9. 0 and bank calculations. notes : median tfp level at current ppps ; usa = 1 all speeches are available online at www. bankofengland. co. uk / speeches chart 8 : uk and germany firm - level productivity ( productivity leadership group ( 2017 ) ) sources : mckinsey & company inc. analysis of orbis ( 2013 ) data, as shown in productivity leadership group ( 2017 ). available at : https : / / www. bethebusiness. com / wp - content / uploads / 2018 / 04 / how - good - is - your - business - really. pdf chart 9 : enterprises ’ broadband connectivity by firm size in 2016 for oecd countries per cent all enterprises 10 - 49 employees 50 - 249 employees 250 + employees sources : oecd all speeches are available online at www. bankofengland. co. uk / speeches