| Abstract [eng] |
Legal Restrictions of Trade in the EU Financial Markets Author of this paper investigates the need and reasoning of legal restrictions of trade in the EU financial markets as well as considers potential problems of restrictions which were introduced after 2008 financial crisis as well as those which will come into force on 2018 January 3rd. Considering problems arising from uncontrolled trading in financial markets, which were identified by both law and economic scholars it is clear that trade and person right restrictions are necessary for orderly and effective functioning of the financial markets. However, any restriction on trading in financial markets is an intrusion by the government into private relations as well as restriction of individual’s rights, therefore it has to be proportional and necessary. Moreover restrictions, while regulating specific asset circulation field – financial markets, are applied to contracts which are primary area private law regulation. 2008 – 2009 financial crisis exposed legislative gaps in financial regulation, which motivated EU institutions to start legal reform, in order to create tighter as well as more broadly applied financial regulation. These reforms also included restrictions on trade. Restrictions on trade in financial markets are aimed to safeguard investors, encourage creation of the single financial services market, and assure effectiveness of financial system as well as transparent and honest trading process. Despite that, most of the restrictions will improve transparency of financial markets, their impact on market efficiency and stability is questionable. Especially problematic are those restrictions, which ban some types of trade as well as improved transparency impact on some parts of the financial markets. |
