S&D Call For Ban On Flash Trading Techniques
S&D Euro MPs today welcomed new measures from the European Commission to strengthen transparency and sanction wrong-doing on financial markets.
Said S&D spokesman on economic and monetary affairs, German MEP Udo Bullmann: “The revision of the Markets in Financial Instruments Directive and the proposals to sanction market abuse are very important measures to increase transparency and make financial trading fairer.
“The S&D group wants an ambitious reform. We want financial markets to work for the real economy and to be structured so that they serve the needs of wholesale and retail investors.”
Said S&D negotiator Robert Goebbels, of Luxembourg: “Dealers use algorithms to place orders in microseconds throughout the trading day. This flash trading causes market upheaval, leads to flash crashes and makes banks lose control of actions on their behalf.
“Markets are always ahead of regulators and always find ways to get round detailed rules. We need to limit the speed of trading in order to make the true price of a traded instrument clearer. One of the options could be an outright ban on flash trading.
“We are pleased that the Commission intends to tackle speculation on food markets. Traders and brokers with no commercial interests should not have access to the agricultural commodity markets.
“The G-20 should also work on regulation specifically designed to tackle the food and agricultural crisis.
“Europe should also apply a zero tolerance rule for traders trying to manipulate the markets. Serious criminal sanctions should be applied across the EU.”