Europe must regulate commodity derivatives: French minister
Europe must act now to regulate commodity markets and particularly financial derivatives, French Economy Minister Christine Lagarde said on Monday.
This was because derivatives, financial instruments based on a real underlying asset, increased price volatility and impeded economic recovery, Lagarde told the financial newspaper Les Echos.
"Europe must get involved now in regulating these markets," she said, adding that in the next few months she would send some thoughts on the matter to the European Commission.
Lagarde, formerly a leading lawyer in the US financial sector, said that "markets for raw materials and associated products turned increasingly on financial instruments" and that "the volume of oil traded on financial markets is 35 times more than the oil traded on physical markets."
© 2010 AFP