Call for EU to tackle financial market abuse

Christine Lagarde, the French finance minister, has called on the European Commission in April 2010 to tackle abuse in European financial markets, which she described as lacking transparency and competition.

In a letter to Michel Barnier, the EU financial services commissioner, Ms Lagarde said the fragmentation of the financial markets following the introduction of the Markets in Financial Instruments Directive (Mifid) in 2007 had led to a lack of transparency and had not driven down trading costs for investors.

The European Commission is reviewing the effects of the Mifid trading rules, which broke the monopolies of the region’s exchanges.

European Commission: DG Internal Market and Services: Financial Services: Securities and Investment Funds: Investment services and regulated markets http://ec.europa.eu/internal_market/securities/isd/index_en.htm

CESR: Press Release, 13.4.10: CESR begins overhauling MiFID by consulting on policy options http://www.cesr-eu.org/index.php?page=home_details&id=470

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