with many of their asia pacific headquarters based here. so, we are uniquely placed to serve as the testing ground for the alliance by connecting banks in the region to their global peers to facilitate sharing and learning. we are confident that the experience gained in asia will provide useful insight and reference for the ifc to promote green banking in other parts of the world. 10. equally important, by helping banks build their capacity, the alliance will complement the efforts of banking regulators across jurisdictions to enhance the banking sector ’ s management of climate - related risks and promote sustainable banking. participating banks will benefit greatly from the ifc ’ s wealth of knowledge and expertise in the field of green finance. the learning and sharing among peers will also encourage cross - fertilisation of ideas, identification of best practices, and collaboration in green investments. 12. the alliance is a new initiative for both the hkma and the ifc. today marks the first step of an exciting journey. very soon we will reach out to stakeholders to join us in this most meaningful project. 13. thank you. 2 / 2 bis central bankers'speeches

with its other functions in consumer protection and financial stability, especially as the new and innovative services grow in scale or become widely adopted. cross - border coordination is also required to address potential arbitrage across jurisdictions, given the much wider reach of fintech products and services. derivatives markets, on the other hand, have a much longer history. the regulatory framework should therefore be informed by history, and lessons from the global financial crisis must not be forgotten. regulators need to guard against the problems that plagued derivatives markets before the crisis : namely, the overuse of leverage, excessive interconnectedness, and opacity. i don ’ t need to “ preach to the choir ” on the tremendous efforts exerted by regulators and market participants internationally to solve these problems. but i do want to remind ourselves to stay vigilant and ensure that implementation is seen through, as this work has not yet been completed. for example, initial margin requirements on non - cleared derivatives, which guard against the overuse of embedded leverage in derivatives, are still being phased - in in a number of jurisdictions including hong kong. at the same time, while derivative transactions that are intended to be cleared has increased five - fold in the past four years in hong kong, according to data from our trade repository, there is more room for further standardisation. finally, solutions such as deference mechanisms, which helps eliminate cross - jurisdictional regulatory arbitrage, are still works - in - progress between the hkma and our overseas counterparts. as we embark on further deepening of the derivatives markets in the asian region, the high standards set up by regulators and by the industry over the past ten years should be well respected, and strengthened regulations on margins, clearing, and transparency should be taken seriously as safeguards against potential risks. let me close by saying a few words about our host today. isda has been instrumental in promoting standardisation of documentation and practices in derivatives markets. in the process, it has played a key role in navigating the industry through post - crisis reforms. isda is and will continue to be an important platform for consensus building and knowledge sharing. i ’ m certain that isda will remain a valuable partner for everyone in asia as we continue to overcome the challenges i discussed today. i look forward to more fruitful collaboration going forward. 4 / 4 bis central bankers'speeches