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This can encourage the wrong type of risk taking and, as we saw in the case of forex manipulation, collusion to make the numbers stack up in the banks' - and the traders' - favour.
Mr Berlusconi's instincts are those of a trader in favours and privileges, not of a competitor in unfettered markets.
As chairman of the anti-EU Bruges Group from 1989, he had some difficulties because, as a free-trader, he favoured the Rome Treaty's single market.
Many traders seem to favour the ICE deal.
Some officials favour forcing traders to disclose large short positions.Two questions hang over these efforts.
Email evidence made plain that Merchant and his fellow plotters had known they were acting dishonestly, conspiring to create Libor rate submissions that were intentionally skewed to favour the traders' own derivative positions.
A month ago Schneiderman accused Barclays of "a systematic pattern of fraud and deceit" by allowing the specialist trading system to favour high-frequency traders.
The FCA said this type of incentive structure created conflicts of interest as these traders had an incentive to favour one fund over another.
I'll also be watching Barclays, which last night was accused of using its 'dark pool' trading system to favour high-frequency traders, exposing its own clients to a pack of voracious predators.
Dark pools are private exchanges for trading stocks and bonds, but unlike traditional markets there are no public prices and trades can be carried out in secret which can favour high speed traders.
Schneiderman says Barclays's dark pool – a private trading platform that allows investors to remain anonymous until they have completed trades – was used to favour high-frequency traders, who trade at tremendous speed to take advantage of tiny changes in the price of shares.
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