Andréa M Maechler: Structural change in the foreign exchange market - implications for the Swiss National Bank

Speech by Ms Andréa M Maechler, Member of the Governing Board of the Swiss National Bank, and Mr Thomas Moser, Alternate Member of the Governing Board of the Swiss National Bank, at the Money Market Event, Geneva, 11 November 2021.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Ladies and gentlemen

It gives me great pleasure to welcome you all – both online and in person – to this year's Swiss National Bank Money Market Event in Geneva.

The past two decades have been marked by dramatic changes in the economic landscape. These changes include a series of crises such as the global financial crisis, the European sovereign debt crisis and, most recently, the coronavirus pandemic. Structural change is occurring at multiple levels, and the pace of this change is picking up significantly due to the ongoing digital revolution. Financial markets are particularly affected by these developments.

In recent years, new technologies, new players and new tools have substantially altered not only the outward appearance of these markets but also their inner workings, their underlying dynamics. Market participants and central banks must therefore confront the following questions: Where can innovations be exploited, what opportunities will they create, and how should any risks be managed? Where is 'mere' technological progress in play, and where do the ongoing changes have more far-reaching, fundamental consequences?