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I am delighted to be here, speaking in my capacity as Chair of the Financial Stability Board
(FSB). The work of the FSB has benefitted from long-standing and constructive interactions with
ISDA on a range of important areas. Two such examples of our collaborative efforts immediately
spring to mind. First, thanks to the concerted effort undertaken by market participants and
regulators, we have made huge progress in the transition to robust alternative reference rates
across key global markets. Thirty LIBOR settings successfully ceased at the end of last year,
and only five USD LIBOR settings remain in use. But, this work is not yet complete. In particular,
it is essential that firms prepare for the cessation of the remaining USD LIBOR panels and that
the new use of USD LIBOR is avoided.
A second area which has seen considerable progress since the global financial crisis, thanks to
our combined efforts, is on over-the-counter (OTC) derivatives market reforms.2 The vast
majority of derivatives trades taking place in FSB member jurisdictions are now subject to
requirements for trade reporting, central clearing, platform trading, and margining for non-
centrally cleared derivatives.
We should draw a lot of inspiration from the success of these initiatives. Building on the lessons
learnt, and the concerted action from various stakeholders, will help us to promote a resilient
global financial system going forward. To this end, I would like to discuss current challenges that
we face in preserving financial stability. The biggest of these is Russia’s invasion of Ukraine. But
we are also facing structural challenges brought about by digital innovation and climate change.
I will then reflect on some common threads arising from our initiatives to address these
challenges. In short, our future work, like that which came before it, requires an emphasis on
transparency, a holistic perspective and strong cooperation across sectors....
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