UBS Scandal Traced To EU Law Loophole

20 Sep 2011

The scandal at UBS from unauthorized trading stems from a loophole in the European Union’s Markets in Financial Instruments Directive, which does not cover exchange-traded funds—the instrument used for the banks’ trades.

The scandal at UBS from unauthorized trading stems from a loophole in the European Union’s Markets in Financial Instruments Directive, which does not cover exchange-traded funds—the instrument used for the banks’ trades. Draft legislation to close the loophole is expected next month, but would not go into effect ...

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