Here we give you a short summary of some of the recent most famous initiatives in terms of global financial regulation.

We do this so that when you hear about an initiative, or you hear a name of a regulation, hopefully you should be able to slot that piece of information into one of the three silos that we're about to show you. The first silo is capital and liquidity. So when you hear capital and liquidity, you're thinking, what is the most recent initiative in the area here? And the most important one, well, it's gonna be Basel III. Basel III deals with capital ratios for banks, do they hold enough capital in the banks? It deals with liquidity, does the banks have enough liquidity to meet unexpected withdrawals? And it does deal with the funding ratio of the banks. So capital liquidity, that's Basel III primarily. And that is, of course, a prudential initiative. It looks at whether banks are run prudently or not. The second silo is structural reform. First of all, what is structural reform? Well, structural reform are initiatives that are relatively short and limited, but they're trying to achieve very significant things. The original structural reform is perhaps the Glass Eagle Eagle Act in America in the 1930s that separated normal deposit-taking banks from investment banks. And this was a super efficient structural reform because it stopped risks and losses in investment banking from spreading into retail banks. What about modern structural reform? Well, some of you have would have heard about the Volcker rule, the Volcker rule is an American rule that prohibits deposit-taking banks, which is most banks these days, from engaging in proprietary trading. And the reason for this, of course, that if a bank engages in proprietary trading, it might incur unexpected losses. And the regulator deems that it's not fair that depositors should be exposed to these unknown risks. Other examples of structural reform could be ring fencing rules, where you have to ring fence certain operations in the business in order to protect other parts of the business from risks. And a third example is short selling restrictions, where the regulator puts restrictions on short selling in certain turbulent market times. So structural reform, take a sword to the regulation, achieve one key thing based on changing a key principle. And the final silo here is infrastructure and transparency, sounds rather fancy, doesn't it? Well, it turns out it is. Infrastructure deals with what is the market, how does it work? And transparency, of course, is what information can we get out of that market? How much can we find out about what's going on here? And those initiatives tend to be very big. The first one we can mention here is a MiFid II in Europe. It's a huge piece of legislation within the EU, it's got one and a half million paragraphs in it, it's absolutely ginormous, full of detail. Perhaps the equivalent of MiFid II in Europe in America is the Dodd-Frank Act. It's also a huge piece of legislation dealing with infrastructure and transparency in America, and it's got 22,000 pages of rules. And the third one we mention here is EMIR, the European Market Infrastructure Regulation. And this one is a lot more narrow in focus than MiFid II and Dodd-Frank. And it deals with OTC, over-the-counter, derivatives. It deals with how we report OTC trades, and how we clear those OTC derivatives, and it does so in order to reduce systemic risks in the market.