Free the Bourses!

This article here talks about how there is a Markets in Financial Instruments Directive (MiFID) in Europe that open bourses to cross-border competition and now allow them to sell their products anywhere in the EU.

This means that previously there were regulations and restrictions against free trade in these areas so perfect competition could not effectively alter prices. Now that trade is open, this competition will drive prices down and raise quality levels so consumers and society will be better off.

1 comment:

Dr. Tufte said...

What's a bourse? I know, but I don't get a sense from the post that Logan does.

Without that, what prices and quality are we actually worried about?

FWIW: it's interesting that the internal strategy of the EU seems to be to reduce barriers, but that isn't their external strategy.