Oct. 11 (Bloomberg) -- European Central Bank Governing Council member Yves Mersch said some financial-market segments lack liquidity to operate smoothly.
European finance ministers “are very keen to regulate OTC derivatives, to forbid naked short selling and so on,” Mersch said in a speech in Luxembourg today. “One element I would recommend ministers ought not to forget is that some of these programs provide to markets the necessary depths and liquidity.”
“It’s exactly what is lacking in financial products,” Mersch said. “We do not have the profoundness, the depths and the liquidity that is needed in the markets in order for those markets to perform smoothly.”
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