of financial stability, we must also acknowledge that both the public and private sectors have a critical role to play. while the perspectives of market participants and official supervisors may differ from time to time, our objective is the same - to maintain a strong and vibrant financial system over the long term. indeed, it is clearly evident to me, as a former commercial banker and now as a supervisor, that only if we work together, each meeting our responsibilities and reinforcing the other, will we be able to successfully manage and supervise a rapidly evolving, ever - more complex financial services industry.

and upheld by market participants – can produce positive externalities that benefit all industry stakeholders, thereby serving as a public good. if used well, best practices can be adapted quickly as market structures, practices, and participation evolve and thus offer timely guidance to market participants. on occasion, they may also help inform regulation. best practices can be broadly categorized into those that are quite narrow, targeting very specific conduct or processes, and those that involve broad principles. those that are narrow in scope are usually more straightforward to implement, and relate to outcomes that are easier to measure. for example, it is fairly easy to assess adherence to the best practice recommendation to implement a fails charge when a seller fails to deliver a treasury security, or to use a payment - versus - payment settlement mechanism for fx transactions. in contrast, best practices that propose broad principles can be implemented differently across institutions and have outcomes that do not lend themselves to easy measurement. for instance, it is difficult to gauge the extent to which an individual market participant behaves in a manner that supports market liquidity or whether market participants as a group apply this recommendation consistently. nonetheless, such principle - based best practices can be quite powerful in motivating market participants to think carefully about their internal policies and procedures and consider whether they are consistent with broader principles. both types of best practices are important. successful best practices are almost always developed using a collaborative and inclusive approach. ideally, with respect to financial markets, the process should include a wide range of market participants, including dealers, banks, buy - side firms, and market infrastructures, representing different areas of expertise, including the core business lines, legal, compliance, operations, technology, and custody. a public consultation process may be helpful in further enhancing the development process. 5 these types of approaches can bring a wide array of some examples of best practices in these sectors include : the national education association, which develops pedagogical standards based on its research ; the best manufacturing practices center of excellence, which helps businesses identify, research, and promote exceptional manufacturing practices, methods, and procedures ; and the food and agriculture organization of the united nations, which develops and shares “ good agriculture practices ” for a range of commodities. during the development of the first phase of the bis fx global code, a large number of detailed comments and useful suggestions were received from market participants that were integral to the drafting process. in april 2015, the tmpg solicited comments on its proposed best practice updates related to automated trading