The ECB does not intend to counter that volatility in the short term, which would effectively give market participants a free insurance policy. However, we will not allow excessive fluctuations in financial markets to threaten the achievement of our objective, which is to ensure price stability in the medium term.
But the diffusion of technology often traces an S-shaped curve, first diffusing slowly, but then rapidly picking up speed. Once we reach the steep segment of that S-curve, it may be too late to rationalize our regulatory structure. Already the largest futures exchange in the world is no longer in the American heartland; instead, it is now in the heart of Europe.