1. Slide 1 Challenges in the field of Securities Settlement Systems World Bank Payments week Andrew Douglas 11 th September 2008

2. Slide 2 What are the issues?  Regulatory  Integration  Collateral  Derivatives

3. Slide 3 Regulatory  In times of crisis, additional regulation often seems to be the answer  We haven’t finished what is already on our regulatory plate  Self regulatory activity – Code of Conduct  Are regulators in synch with market capability?  Potential for regulatory overload?

4. Slide 4 Integration  Barrier 1 adoption is the foundation of portable integration –T2S –CCBM2 –Euroclear  ….or is it? What about a translation layer? –But extra layers = extra complexity = extra cost  Is adoption by infrastructures more important than adoption by financial institutions?  Importance of market practice to support technical integration