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‘Gamification’ in financial markets under scrutiny, says EU watchdog -Breaking


© Reuters. FILEPHOTO: European Union Flags seen at the EU Commission Headquarters, Brussels, Belgium on November 14, 2018. REUTERS/Francois Lenoir/File Photo

Huw Jones

LONDON, (Reuters) – Gamification is bringing a new breed of retail investors into financial markets. However, they may not know that there are very few protections for assets such as cryptocurrencies. This was according to the European Union’s securities watchdog on Tuesday.

Gamification is the use of smartphones for trading. It was a popular trend that started on Wall Street in response to the coronavirus pandemic.

Verena Ros, Chair of European Securities and Markets Authority told Forum Europe that she wanted investors to be involved more in financial markets and less just keeping their money on the mattress.

However, gamification is not without risks. It can create speculation and leave investors unaware of the protections available when they trade markets such as cryptoassets.

Ross explained that the proliferation of unauthorised trading advice has been enabled by social media. This year, the bloc plans to overhaul its “retail investors” strategy in response to the rise of digital finance.

Ross stated, “We’re looking into how we can raise awareness and warn investors about the dangers they might be taking on.”

It has proposed that the “payment for ordering flow” be banned from the retail sector.

The EU regulators must balance protecting investors and allowing retail investments to thrive in an area that has always favored savings products.

Because Britain is leaving the EU, it has been pushing to expand its capital market in order to promote companies’ ability to raise money by issuing shares and not relying only on banks.

Alexandra Jour–Schroeder is a top official at the European Commission’s Financial Services Unit. She stated that “cumbersome” listing regulations will be changed as the bloc trails other jurisdictions when it comes to helping businesses raise money on the markets.

But Francesco Ceccato, CEO of Barclays (LON: Europe) More is required to mobilize huge EU savings and green the economy.

Ceccato explained that what is really needed was to get more political support to something that could be a little bit radical in some areas…to foster an equity culture throughout the EU.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.