Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

ETFs, High-Frequency Trades May Pose Threats, Vegas Says

May 14 (Bloomberg) -- Exchange-traded funds and high-frequency trading may pose systemic threats to markets and warrant bans, said Consob Chairman Giuseppe Vegas.

“Legislators and authorities need to ask themselves if certain types of innovation are good or bad for savers,” Vegas said in a speech at the Italian securities market regulator’s annual meeting in Milan today. Legislators shouldn’t hold back from “simply banning the spreading of dangerous practices and products,” he said.

Vegas, who took over as Consob chairman last year, said high-frequency trades need more rules to prevent market distortions and to control volatility. ETFs, which banks have used to raise funds as an alternative to deposits, should become more transparent, he said.

Consob has been a proponent of banning so-called naked credit-default swaps and backed the European Union’s move to halt the contracts on sovereign debt.

“Financial innovation can be positive but legislators and authorities must avoid that it becomes a mechanism that wipes out families’ savings,” he said.

To contact the reporter on this story: Elisa Martinuzzi in Milan at

To contact the editor responsible for this story: Edward Evans at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.