Thank you Richard,
Ladies and gentlemen, it is a pleasure to be here this evening just 3 days after Australia has undergone some momentous events at home and abroad.
And while these events have unfolded on the sporting field and at the ballot box, we are now heading towards another significant event for Australia and that is the Centenary of Federation.
Everyone here is probably familiar with the TV campaign in which the question is posed:
"Do you know the name of Australias first Prime Minister?"
I hope that all in this room can answer that question.
A far harder question to answer, which would test the most accomplished Trivial Pursuit expert is:
"Can you name the father of Sir Edmund Barton, and what was his occupation?"
The answer is William Barton, Australias first stockbroker. He set himself up in 1835 as an agent for the transfer of shares. He thus played a significant direct and indirect role in Australias history.
William Barton opened the book in Australias stockbroking industry development. Todays launch of the Securities and Derivatives Industry Association opens a new chapter in that continuing story.
The challenges facing stockbrokers today are far greater than those faced by William Barton. In his time, it was possible for an individual to have an intimate knowledge of the market and the players in it, and single‑handedly manage a stockbroking business.
But, as a successful business man, Barton would have known the importance of working together with others to prosper as he collaborated with colleagues in the growing Sydney Town, not far from where we stand today.
Even though his financial services world was very different to our revolutionary times - he would have known the one timeless principle - that a market will, and must, evolve to meet the needs of its customers.
Neither the Government nor the industry is directing marketplace development. It is the investors seeking value who are driving the pace and the course of change.
We must not lose sight that it is their needs we all serve.
How are we serving those interests?
The Government is determined to continue to build strategic international relationships, between Australian exchanges and global exchanges.
Importantly, we must recognise that having more jobs in the financial services industry is directly linked to having Australia become a global financial centre.
In a world where an estimated $US10 trillion worth of investment in equities will cross borders next year - "Get cheaper, get bigger, get on with it", seems to be the catchphrase for the end of the Millennium.
However, I do not think this means that we are inevitably moving to a global exchange run by a single organisation.
Large, monolithic organisations lack the nimbleness and ability to serve diverse customers that are needed to prosper in an on‑line world.
The alternative scenario, which provides an exciting opportunity for Australia, is a networked international market.
This means alliances between market participants.
An alliance that works, that maximises the effectiveness of each participant's resources and that succeeds by being focused on the needs of investors.
It seems very obvious to say it, but alliances are about mutual benefit.
Experience has shown that where all parties are committed to an alliance, major benefits can be achieved.
Alliances mean you can make the cake a whole lot bigger instead of trying to steal a larger slice of a smaller cake.
As everyone here today knows, we want to make Australia a centre for global financial services, and we can do that by following one of two strategies.
Our strategy can either be win‑win or a win‑lose.
I believe that a win‑win is the best way forward for everyone involved. And alliances are the perfect way of getting a win‑win outcome.
The pace and the ferocity of international competition means that Australia needs to expand through alliances. We need to seek out areas of mutual benefit so we can gain co‑operation.
This can be done by looking for the comparative advantages of different markets and developing alliances that build upon them.
We should seek strategic links with Singapore, Hong Kong and Tokyo so that we can pool liquidity.
But Memorandums of Understanding are not enough.
We need to consolidate clearing and settlement procedures so that we can stream line our operations.
However, we will not compromise the transparency and efficiency of our market in the process because that is our most distinct competitive advantage.
That said, the Government understands that to compete in a global environment the Australian financial service sector may need to develop clearing and settlement systems that recognise the necessary efficiencies of scale.
The next phase of our corporation law reforms or CLERP 6 when released will embrace these concepts and recognise and build on our distinct regulatory advantage.
Ladies and gentlemen, it is important to be out in front of this process of alliances building and avoid being left behind.
This pace of change challenges us all. But change is what creates the opportunities for growth.
And the Government is working hard to make sure that those opportunities can be exploited in Australia.
I hope the Securities & Derivatives Industry Association will be another pillar of support of the Governments efforts in this direction.
I warmly congratulate those who have worked hard to get the SDIA up and running. Its creation provides support to the message I have been spruiking around the world -- that Australia has the highest standards of expertise and professionalism in its financial services industry.
I look forward to working with you in the SDIA as we move towards our common goal of developing the market in the new Millennium.