Journal Detail

Journal 29 – Creating Markets

September 2010

The articles in this edition focus on the major challenges financial institutions still face. Our authors critically examine whether the steps taken to prevent future crises are adequate, and suggest how new markets and instruments could and should be developed for our industry to remain successful in the future – and more importantly, to regain the trust of the world’s citizens.

The past couple of years have been very bruising for our industry. The unprecedented series of recent events nearly brought down the global economy and many, rightly or not, blame the financial services sector for all their ills.

The so-called Great Recession has claimed many an impressive financial institution as its victims, and those who are left standing are by no means as safe as we would all like them to be. A number of blatant omissions and commissions resulted in a situation that – almost three years after the crisis began – we are still no surer today if our financial system is on a solid footing. Different tests are carried out by different regulators to examine the health of the financial sector, but no one dares to ask the really tough questions, since many suspect they already know the answers.

Trust in the financial system has all but disappeared, with new regulations being introduced within the major markets in an attempt to prevent the same mistakes from happening again.

We need to rebuild our industry from scratch, looking not only at how old instruments and markets should be more effectively and profitably managed, but also at introducing new ones. This issue of the Journal is dedicated to this theme, namely creating new markets.

The articles in this edition focus on the major challenges financial institutions still face. Our authors critically examine whether the steps taken to prevent future crises are adequate, and suggest how new markets and instruments could and should be developed for our industry to remain successful in the future – and more importantly, to regain the trust of the world’s citizens.

These are not simple objectives to meet, yet they are essential if we are to return to being the organizations upon whose shoulders the world economy rests. We hope that the articles in this issue of the Journal provide you with useful ideas as to the collective objectives we should have for our industry in the future, and the steps we must take in order to achieve them.