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Jul. 26--While share speculation does bring liquidity and efficiency to emerging markets, the downside is potential damage to trading systems and economies overall, according to financial experts and academics.
Controlling risks by limiting speculative trade and maintaining market integrity was the key role of regulators, Prasarn Trairatvorakul, the secretary-general of the Securities and Exchange Commission, told the 2001 Asia Pacific Finance Association conference yesterday.
Regulators should also build conditions that help speculators increase their contribution to overall social welfare, he said.
The four-day conference, which ended ...