Commentary

FCA’s plan to ease market-maker rules is a new threat to banks

Watchdog says rules are too geared towards banks that hold retail deposits

Specialist trading firms such as Jane Street Capital and Citadel Securities have marched ahead in the US. Will the promise of ‘tailored regulation’ in the UK do the same?
Specialist trading firms such as Jane Street Capital and Citadel Securities have marched ahead in the US. Will the promise of ‘tailored regulation’ in the UK do the same? Photo: Getty Images

David Wighton is a columnist for Financial News

When the regulation of banks was tightened after the financial crisis, many observers predicted that they would rapidly lose market share to non-bank challengers. Not only would these disrupters need to hold much less capital, they would be able to adopt the latest technology without the lumbering legacy systems that weigh down incumbents.

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