New rules to target the market-riggers

20-Jun-2013 @ 17:0

Kay Swinburne Kay Swinburne

Anthea McIntyre Anthea McIntyre

Anthea McIntyre Anthea McIntyre

Conservative MEPs today gave a cautious welcome to a breakthrough agreement between European Parliament negotiators and the EU Council over planned new rules to tackle market abuse.
The regulations should clamp down on price and rate-rigging as exemplified by recent scandals over LIBOR and the oil market.
Kay Swinburne, Conservative negotiator on the new regulations, said the scope of the rules was welcome - but she would have preferred stronger sanctions against anyone who continued to flout them.
The Wales MEP said: "It is good that the EP and Council have reached an agreement to have strong market abuse rules across the EU after so many high profile cases of market manipulation.
"I am disappointed that the level of fines that has been agreed to is now only 15 million Euros, or 15% of the annual turnover of the company - I had originally proposed unlimited fines, as the potential for profit is so high, the deterrent needs to be truly effective.
"However, as the legislation does allow member states to go further, the UK authorities should still be able to fine over and beyond that proposed in the regulation so as to properly punish those guilty of market abuse."
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