Financial markets all over the globe are going through a phase of severe crisis. The current global crisis in financial markets makes it very clear that they are out of control. Just a few years ago it would have been rare that a crisis in a sector of one country\'s economy, like the sub-prime crisis in the USA, would quickly harm the global economy. The globalisation of a financial system based on the short-term interests of investors jeopardizes even hitherto stable and efficient financial markets. But crisis always throws up new challenges and opportunities. The impact of financial crisis on the markets and economy depends on the level of preparedness of the markets. Preparedness is a function of maturity and efficiency of markets. We need new regulations at national and international level to make sure that problems in single sectors are spotted in good time and their adverse consequences kept under control. The capital and commodity market regulators play a major role in smoothing the impact of crisis. Financial institutions in emerging markets have also been much affected by the sub-prime crisis.