About: Markets in Financial Instruments
Introduce precautionary principle for financial products, or they will fail us
Europe is in the process of re-formulating financial regulations and creating a new banking union, but new rules will give rise to new financial products, writes Suleika Reiners, and these may wriggle around the new rules. Financial innovations need to be tested and put to the precautionary principle no less than other aspects of society, she argues, and suggests that a new body could be set up to carry this out.
UK report rejects EU plan to curb high-speed trading
European Union plans to clamp down on trading shares faster than the blink of an eye could damage market efficiency and reduce liquidity, a UK government-sponsored paper said, rejecting a key Brussels proposal to force traders to hold shares for longer.
EU lawmaker turns screw on ultra-fast trading
Banks should be banned from giving outside brokers direct access to markets as part of a sweeping crackdown on computerised high-frequency trading, reads a European Parliament report to be presented to the Economic and monetary committee on 24 April.
Financial regulation plays catch up with crisis
The European Commission has proposed extending the Markets in Financial Instruments Directive (MiFID) to redress market abuse and volatile trades highlighted by the financial crisis. Experts warn that arbitrage is always around the corner.