New Markets and New Demands: Challenges for Central Banks in the Wholesale Market Infrastructure

In a keynote speech today at the joint Bank of England/European Central Bank conference on 'Payments and monetary and financial stability', Nigel Jenkinson - Executive Director of the Bank of England - discusses some of the structural changes in the trading, clearing and settlement infrastructure supporting financial markets and considers associated challenges for central banks and financial regulators.

Published on 12 November 2007

Pointing out that a central bank's typical objectives of monetary and financial stability emerged from an early role in settling claims between banks, he observes that over time the financial infrastructure has broadened and deepened, stretching beyond the traditional locus of central bank influence. And it continues to evolve, with ever faster technological and financial innovation, regulatory change and the globalisation of banking reshaping the infrastructural landscape, exposing new sources of risk and posing fresh policy challenges.

Press release