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What is a regulated market?

Regulatory market (regulated market, controlled market)

A regulated market is one that is supervised or controlled to some extent by the government or established public body. Most financial trading exchanges such as stock markets are regulated, although over-the-counter markets tend to be lightly regulated or even unregulated.

Where have you heard about regulated markets?

As an investor, you will be aware of the regulations affecting your financial adviser and the markets in which you invest, such as the stock or commodity markets. Financial media discuss proposed or existing regulations and interest groups lobby against any increase in 'the burden of regulation'.

What you need to know about regulated markets.

Until quite recently, financial markets tended to regulate themselves, drawing up their own rule-books which were then enforced, usually by committees made up of financial practitioners. That was changing even before the financial crisis. For example, the European Union's Markets in Financial Instruments Directive (MiFID) was first promulgated in 2004. Since the crisis, regulation of financial markets has greatly increased across Europe and North America, with detailed rules on everything from conduct of business to reporting of market positions. Only one-to-one dealings, such as in currencies or money market instruments, remain largely unaffected.

Find out more about regulated markets.

Regulation is a fact of life in financial markets. Learn more about financial markets here.

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