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Dr Christophe Aubin Nury De Malicorne
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Dr. Christophe AUBIN-NURY de Malicorne-Director, International Board for Asset Management at SCMS/SCMS Capital Group Ltd; Lecturer of Economics-Finance and Member of CEDIN Research Center at University of Paris 10.
  • The Deregulation In European Trading 0 comments
    Mar 20, 2012 11:54 AM
    Dr. Christophe AUBIN-NURY de Malicorne is Director, International Board for Asset Management at SCMS/ SCMS Capital Group Ltd; Lecturer of Economics-Finance and Member of CEDIN Research Center at University of Paris 10.

    In Europe, since the mid 2000s the deregulation has also been applied to trading, notably through the implementation of online trading platforms and alternative trading systems which have been authorized by the European Commission, initially in order to provide an increase of liquidity in financial markets.
    However, the lack of strict regulations and the level of anonymity for trading partners in such trading organizations have in part increased the level of liquidity but most importantly have contributed to the rapid emergence of high frequency trading and the rise of capital groups powerful enough to influence abnormally the pricing of securities.
    Acknowledging the lack of transparency of these organizations, European Authorities have put in place a center in order to disclose all transactions made by these alternative trading organizations under the supervisory authority of the European Financial Market Agency.
    The European Commission seems to have understood the risks attached to these, until now, unregulated trading platforms. Unfortunately, no disciplinary actions are yet vested in the recently formed supervisory body which is not only unsatisfactory but as well raises the issue of a possible and efficient cooperation at European level regarding the good governance in financial markets, in light of the power struggle between French, German and English financial centers.

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