Two of the European Parliament’s groupings, the Socialists and the European People’s Party (EPP), have expressed their approval of the report of Dr. Kay Swinburne MEP, which recommended tougher rules on high-frequency trading and dark pools.

The report suggested that a lack of transparency in the financial system was an “aggravating factor” in the financial crisis. It also blamed the Markets in Financial Instruments Directive (MiFID) for problems in the financial market that have arisen since its adoption in 2007.

Although the economic and monetary affairs committee will not directly impact regulatory changes or legislation, this support for harsher rules is indicative of the European Parliament’s views at a time when the European Commission is preparing for a much-anticipated formal review of the MiFID in 2011.

To read Dr. Swinburne’s report, click here.