##s to say, however, we remain watchful of stock market developments and their potential ramifications. monetary policy and structural reform as i have discussed, the bank of japan, closely watching various risk factors, is determined to conduct monetary policy in an appropriate and flexible manner with the aim of supporting the nascent economic recovery and preventing the japanese economy from falling into a deflationary spiral. at the same time, i would like you to understand that monetary policy is no panacea, and cannot be a substitute for needed structural reform. needless to say, over the long haul the source of economic growth should be found in the full realization of private sector vitality with the support of various innovations. in pursuing structural reform, both policy efforts and corporate endeavors to directly address structural problems are imperative. in that sense, as i mentioned, we need to continuously re - examine our social and economic system and reduce uncertainties and anxieties surrounding various economic activities to the extent possible, thereby creating an environment in which risk - taking is facilitated. as the central bank of our country, the bank of japan provides a variety of banking services, the quality of which affects the course of japan's economy. therefore, we are willing to contribute to the reform of financial systems by improving the functioning of financial markets and payment systems. currently, we are striving to introduce rtgs - - real - time gross settlement - - which will start on january 4th next year. at the same time, we are also exploring the possibility of adopting electronic systems to carry out operations related to treasury funds. i hope that these assiduous efforts will bear fruit in building an efficient and stable financial system. concluding remarks in reviewing economic developments in japan, i have presented my view of the challenges facing us and the basic stance concerning the conduct of monetary policy. now that we are close to the dawn of the twenty - first century, let me wind up my speech with a brief overview of the economic developments of the past century. over the past 100 years, annual growth has averaged 3. 3 % in the us and 1. 9 % in britain. both nations experienced two world wars and several smaller ones. on the economic and financial fronts, they both experienced rampant inflation and deflation, as well as severe financial disruption. and, it was some twenty years ago that the decline of their national power was debated. as for the recent five years, however, both the us and the uk have achieved average growth of 4

guy debelle : the global code of conduct for the foreign exchange market ( update ) speech by mr guy debelle, assistant governor ( financial markets ) of the reserve bank of australia, at the asifma / gfma liquidity conference ( appearance via video link ), hong kong, 14 june 2016. * * * thank you for having me here today to talk about the global code of conduct for the foreign exchange market. as you may know, phase 1 of the code was launched in new york in late may. 1 today i will reiterate the motivation for the work we are doing on the global code, then update you on where we are at with the process and outline the way forward. why is the work going on? as i have stated on previous occasions, the foreign exchange ( fx ) industry is suffering from a lack of trust in its functioning. this lack of trust is evident both between participants in the market, but at least as importantly, between the public and the market. the market needs to move toward a more favourable and desirable location, and allow participants to have much greater confidence that the market is functioning appropriately. a well - functioning foreign exchange market is very much in the interest of all market participants. this clearly includes central banks, both in their own role as market participants but also as the exchange rate is an important channel of monetary policy transmission. in a globalised world, the foreign exchange market is one of the most vital parts of the financial plumbing. the global code sets out global principles of good practice in the foreign exchange market to provide a common set of guidance to the market, including in areas where there is a degree of uncertainty about what sort of practices are acceptable, and what are not. this should help to restore confidence and promote the effective functioning of the wholesale fx market. to that end, one of the guiding principles underpinning our work is that the code should promote a robust, fair, liquid, open, and transparent market. a diverse set of buyers and sellers, supported by resilient infrastructure, should be able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour. the work to develop the global code commenced in may last year, when the bank for international settlements ( bis ) governors commissioned a working group of the markets committee of the bis to facilitate the establishment of a single global code of conduct for the wholesale fx market and to come up with mechanisms to