Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

'Gamification' in financial markets under scrutiny, says EU watchdog

Stock MarketsJan 25, 2022 05:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: European Union flags are seen outside the EU Commission headquarters in Brussels, Belgium November 14, 2018. REUTERS/Francois Lenoir/File Photo

By Huw Jones

LONDON (Reuters) - Gamification has introduced a new generation of retail investors to financial markets who may not be aware there are few protections in assets like cryptocurrencies, the European Union's securities watchdog said on Tuesday.

Gamification refers to using smartphones to trade, a trend which took off on Wall Street during the coronavirus pandemic with apps like Robinhood (NASDAQ:HOOD), and has spilled over into European markets.

"We want investors to engage more in financial markets and not just keep their money under the mattress," Verena Ross, chair of the European Securities and Markets Authority, told a Forum Europe financial services conference.

But gamification also presents significant risks, creates speculation and leaves investors not realising there are protections when trading markets like cryptoassets, she said.

Social media has also allowed the spread of unauthorised trading advice and the bloc is due this year to revamp its "retail investor" strategy to reflect the rise of digital finance, Ross said.

"We are looking at how to raise awareness and warn investors what they are letting themselves in for," Ross said.

The bloc has already proposed banning "payment for order flow" in the retail market.

But EU regulators face a balancing act between protecting investors while allowing retail investment to flourish in a region which has long favoured savings products.

The bloc has made a push to deepen its capital market to encourage companies to raise funds by issuing shares rather than relying on banks, made all the more urgent by Britain's departure from the EU.

Alexandra Jour-Schroeder, a senior official in the European Commission's financial services unit, said "cumbersome" listing rules will be reformed as the bloc lags "far behind" other jurisdictions in helping companies raise funds on markets.

But Francesco Ceccato, CEO of Barclays (LON:BARC) Europe, said more was needed to harness huge savings in the EU to green the economy.

"What we really need is to marshall greater political support around something that can be a bit more radical in some places... to create an equity culture in the EU," Ceccato said.

'Gamification' in financial markets under scrutiny, says EU watchdog
 

Related Articles

Airline easyJet cancels more than 200 flights
Airline easyJet cancels more than 200 flights By Reuters - May 28, 2022 3

LONDON (Reuters) - Low-cost carrier easyJet (LON:EZJ) is to cancel more than 200 flights over the next 10 days due to airport delays and other restrictions, disrupting travel...

China's first residential REITs to be launched
China's first residential REITs to be launched By Reuters - May 28, 2022

SHANGHAI (Reuters) - China's first public real estate investment trusts (REITs) based on residential properties will be launched soon, as regulators step up efforts to channel...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Robert Copeland
Robert Copeland Jan 25, 2022 7:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If you use your phone to trade on, the wrong person knows about? You may as well put your money in there back pocket yourself. A phone has no security to protect your trades, I could careless what manufactures, developers or the telecoms say. If your going to do that, you had best have a custom ROM on your phone and know who you hired to write it. Even then I would think twice.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email