This paper analyses three essential functions of global financial market management that currently are not properly met, and could best be met by new institutional developments: 1. prudential regulation; 2. provision of official liquidity to countries or markets in crises; and 3. emergency orderly work-out procedures. The paper reviews progress achieved regarding needed reform of the international financial architecture since 1998. It concludes that, although important progress has been made, it is urgent for further necessary measures to be taken. This is because recent crises have had an unacceptably high cost, especially for developing countries, and have discouraged future private investment, both by national and foreign investors.