Boost Retail Trade Legitimacy with Online Signature Solutions in EU

How to eSign a document: online signature legitimateness for Retail Trade in European Union

[Music] the introduction of a 1.7 million paragraph piece of legislation brings in a new reality for banks and financial firms in the european union and around the world its implementation was already delayed by one year but still only 11 of the eu's 28 countries have put it into national law unfortunately still not all member states had transposed method too and this then can lead certain difficulties with trading of the shares of those countries which are not transposed method to so we had been uh highlighting this issue with the finance ministers in eco-friend already for quite some time the method two regulation is an update on the original markets in financial instruments directive after the 2008 financial crisis it includes forcing trading platforms to be transparent about their prices so that investors can shop around fund managers won't be able to pay banks and brokers in lump sums for things like research and trades to allow clients to see clearly how their money is being used the european securities and markets authority will have far more power to put an end to financial products it deems to be harmful the rules will also limit the amount of power a stock broker can have over a single commodity the banking authorities in the uk and germany decided to give an initial exemption to three clearing houses where trades are held before they're completed some in europe think method two is just further over regulation every regulation is good for the big and bad for small so is bad for competition is what happened with method one the the heavy burden of regulation did have an effect of uh of of uh rewarding uh the bigger players in the market that were more able to uh to deal with um all the bureaucracy stock markets across europe took the implementation in their strides during initial trading but it's likely to take some time before the long-term effects of the legislation play out fully jack parrack's trt world brussels and david madden joins us now from london he's a market analyst at cmc markets david great to have you on the show happy new year tell us a little bit about how the markets reacted to method 2 today happy new year to you too uh in relation to method to be honest it was actually quite muted the reaction whether it was big banks pension fund managers or smaller financial services financial services companies it was quite a mixed bag some finished higher in the day some finished lower in the day but the common theme was low volatility across financial stocks today i i'm assuming because this has been well in the pipeline and the financial markets have been well aware of this for some time now it really was a muted reaction uh here in london today what's your feeling about method 2 david is it going to be greater transparency for investors or is it going to be onerous regulation i would say ub is the former uh it's more likely to have greater transparency and given what we've got we've come out of the financial crisis of 2008 2009 i think that's what a lot of particularly retail investors would like to see method 2 is going to have much more accountability stage by stage in the investment process each individual or professional will have to clearly mark out the reasons why they need such a transaction or such a move on the flip side of that that's going to come come with more cost and higher the additional regulation is going to come with a higher cost and i suspect the majority of ordinary pension hole holders out there would rather accept that trade-off of additional costs in exchange for additional protection and transparency david what do you say about this other criticism about method 2 that it actually benefits the bigger players in the financial industry because as you mentioned there that there are significant costs involved unfortunately it does favor those with the with the larger uh larger organizations which have better economies of scale this additional regulation sure it provides transparency and protection but also comes with a much longer and more detailed paper trail and larger organizations will be far better equipped in terms of economy scale to deal with that than the smaller houses do you think it's going to succeed then in its goal of of eliminating these conflicts of interest between the the research side and the people that sell that research and sell the financial products that go with them uh which was criticized in a big way for being one of the causes for the financial crash of 2007. it will start to take a large dent out of it the so-called unbundling of these packages whereby trades are and research are packaged together and when a fund manager is placing them together they're not entirely sure or the end customer isn't entirely clear what exactly the um the eats its eat aspect is paid for i do feel um it's gonna largely have the um the on body effect will clear it okay but it still probably will be there nonetheless david madden cmc markets i'm afraid we're out of time thank you so much [Music]