|
Conclusion
|
Significant concrete steps have been taken in a remarkably short period of time relevant to key areas identified above, including large exposures, procedures in a market crisis, enhanced transparency of market protection and procedures, client asset protection and minimizing the systemic effects of a market disruption. These developments have the potential to reduce systemic risk and enhance regulatory safeguards in an increasingly global financial market place. Even the best designed framework, however, can only be effective when properly implemented. While much progress has been achieved here as well, we believe that all will share our view that regulators must remain vigilant and flexible in their domestic and international work to secure the protection of investors and the integrity of markets. But, despite their best efforts, supervisory authorities cannot alone ensure that a major market event will not again occur. The accomplishments following Barings and the Windsor meeting may have increased regulators' ability to detect and contain the effects of a firm or group default, but such occurrences can always recur. The final, and perhaps most significant, lesson of Barings and the Windsor process is that all those involved in today's global financial markets, whether as regulators, self-regulators, markets and market members, or as customers and market users, have a role to play. This can range from firms and other relevant organizations ensuring that they have adequate and appropriate internal management controls in place, to customers and market users taking responsibility for understanding the relevant market practices, procedures, and protection in different market places. Due diligence should be an established practice in investment decision-making. it is only by working together, as Barings and other events have shown, that we can begin to confront the systemic and other challenges that the future will bring. To this end, enhanced transparency of market rules, practices and customs, and greater efforts to educate customers and other market users should be an integral component of prudent regulatory practices. In summary, it is our view that the international community can justifiably derive satisfaction from the actions and initiatives taken to implement the Windsor Declaration. The work completed and in progress fully meets the agenda set out at Windsor and will play no small role in enhancing customer and market protection and minimizing systemic risk. Accordingly, we believe that the catalyst of the Windsor Declaration has had the desired effect and that no further reporting on the Windsor program will be necessary.
August 1996
|
Contact us *
Risk Library *
Documents by Author *
International Organization of Securities Commissions (IOSCO) *
Final Report from the Co-Chairmen of the May 1995 Windsor Meeting to the Technical Committee of IOSCO
