VIENNA | Thu Sep 29, 2011 09: 58 BST
Vienna (Reuters) - the European markets watchdog wants, provide additional information about this, what happened to an alleged rogue trader at Swiss Bank UBS before deciding whether more stringent rules for Exchange traded funds (ETFs) whose Chairman is justified, told reporters.
But is the European Securities and markets authority (ESMA) provide however, the complex ETFs increasingly boost find their way into the portfolio of retail investors like in weak markets, Steven Maijoor said income.
"It is not clear whether the problem (at UBS) was inherently related to ETFs or whether with any futures trading would it can happen", Maijoor said.
"I think we have to wait until the facts to understand what the problem was."
UBS (UBSN.)(VX) said this month that a trader had allegedly concealed the fact that UBS risk limits violated his business by running fake ETF positions.
ETFs are index funds, which can as ordinary shares are traded and listed on a stock exchange. You try to replicate the index performance and lower costs than actively managed funds offer, but regulators have warned some complex ETFs risks.
The instruments of the UBS case involved are similar, that Jerome Kerviel, the Société Générale rogue trader (SOGN.)(PA) acted, if he to $6.7 billion (£ 4.3 billion) loss in unauthorised deals in 2008 deducted.
ESMA has tried commenting, what sold it, such as inadequate regulation listed complex ETFs under the EU sees authorised UCITS Fund framework.
Maijoor said UCITS products used to easy and simple things such as mutual funds, but have increased, developed.
"Products are more complex in the hands of small investors, and that is a concern of ours land." "The question is, we need to rethink and have additional guidelines in this area", he said late on Wednesday.
"What we must think are closely considered, is whether these new products are solid, are safe and risks not have stability", he, recognition, said ESMA was not yet in a position, she should ban it fit you will find under.
Discussion of a ban on stock short-selling, Belgium, France, Spain and Italy introduced in August and advanced on Wednesday said Maijoor, thought he, which would end curbs, if market conditions normalize.
He said "if market conditions would permit, that I understand that they want to lift the ban".
(Reporting by Michael Shields;) (Editing by Toby Chopra)
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