UPDATE 1-EU regulators monitor markets more closely

* EU supervisors say will coordinate actions with US

* France’s AMF: spy service watch for market speculators

* CDS, derivatives face tougher transparency rules

(Adds detail, background)

By Huw Jones

LONDON, May 7 (BestGrowthStock) – National markets supervisors in
the European Union agreed on Friday to intensify monitoring due
to wild swings in stock and derivative prices that have rattled
investors.

“In particular, they will pay attention to potential
breaches of conduct of business rules and cases of market abuse
with a view to coordinating the actions of national
supervisors,” the Committee of European Securities Regulators
said in a statement.

It was the latest salvo from regulators and policymakers who
are trying to quell market volatility sparked by fears that
Greece’s debt woes are spreading. A massive plunge on Wall
Street Thursday also unnerved investors.

The committee, whose members include the Financial Services
Authority from Britain, France’s AMF and BaFin of Germany, was
holding a scheduled meeting in Barcelona.

CESR would coordinate any cross-border investigations and
liaise closely with its counterparts in the United States, the
Securities and Exchange Commission and the Commodity Futures
Trading Commission, to ensure a global approach.

“These actions are taken in line with CESR’s tasks, that is
promoting the transparency, integrity and orderly functioning of
EU securities and derivatives markets,” CESR said.

European shares (.FTEU3: ) ended down 3.7 percent on Friday on
investor concerns about the euro zone sovereign debt crisis.

SPYING ON SPECULATORS

Separately, the AMF said it will work with the intelligence
services to crack down on speculators seeking to profit from the
debt crisis by spreading unfounded rumours. [ID:nLDE6460HZ]

It followed comments earlier in the week from French Economy
Minister Christine Lagarde and other politicians in the EU
condemning of what they see as speculative attacks against the
euro on financial markets.

U.S. authorities on Friday were investigating the cause of a
nearly 1,000 point plunge in the Dow Jones industrial average on
Thursday that left many investors gasping. [ID:nN07263865]

The SEC launched a probe, which would look for any
wrongdoing related to the stock market selloff, a source
familiar with the matter said.

U.S. President Barack Obama said he had spoken with German
Chancellor Angela Merkel about Europe’s financial situation.

A conference call on Friday morning among members of the G7
group of advanced economies also discussed stock markets.

Several policymakers in Europe this week have also been
threatening tougher rules on credit rating agencies, accusing
them of exacerbating the market crisis as well.

CESR also announced on Friday it was studying
tougher transparency rules on a wide range of derivatives
including sovereign credit default swaps (CDS), a type of
insurance contract policymakers say were used to bet on a
worsening in Greece’s debt problems. [ID:nLDE6461VQ]

Investing Analysis

UPDATE 1-EU regulators monitor markets more closely