“Today’s vote will make financial markets safer for consumers” - Bowles

Sharon Bowles MEP has congratulated her colleagues for joining her in pushing for stronger investment protection rules and tighter regulation on commodity derivatives in the Markets in Financial Instruments Directive, voted today by the European Parliament.

Bowles, who also chairs the Parliament's Economic and Monetary Affairs Committee, says it is imperative that people know under what guise they are being given advice on a particular investment.

Speaking in the Parliament, Bowles said:

"Citizens need to be sure that they are getting the best advice for them, not being pushed in a direction for the advisor's benefit. So, ultimately, a total ban on inducements has to be the way forward."

Another thorny issue has been the debate on so-called food speculation and how to regulate the trading of commodity derivatives more effectively.

On this, Bowles said:

"I have never had any problem with the notion of fixed position limits as long as in emergencies they can be tightened if cornering happens or varied if a major market position has to be rescued.

"The text that was voted through today by MEPs will still allow people with genuine interests in the underlying commodity to offset their risk, but at the same time it will tackle the problem of food prices being affected by the actions of speculators in the market."

Bowles also reiterated her support for automated real time transaction mapping, saying:

"It would enable much better interrogation of data without it being a drag on resources, giving comprehensive, faster monitoring in crucial areas like food speculation too."

The Directive and Regulation will now enter into trialogue negotiations with the Council and the Commission.

ENDS

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