European Union (EU) lawmakers clinched a deal to toughen thebloc's financial-market rulebook, backing sweeping measures that willput the brakes on high-frequency trading and curb speculation incommodity derivatives. The overhaul, which will push more activityonto regulated platforms, is designed to remedy deficiencies laidbare in the 2008 financial crisis. The accord ends more than twoyears of haggling over proposals from Michel Barnier, the EU'sfinancial services chief.

“These new rules will improve the way capital markets functionto the benefit of the real economy,” Barnier said in an e-mailedstatement after yesterday's agreement in Strasbourg, France. “Theyare a key step towards establishing a safer, more open, and moreresponsible financial system and restoring investorconfidence.”

The EU's bid to revamp its market legislation, known as MiFID,is a centerpiece of the 28-nation bloc's work to implementagreements reached by the Group of 20 nations in the wake of theturmoil that followed the 2008 collapse of Lehman Brothers HoldingsInc. Members of the European Parliament and officials from Greece,which holds the rotating presidency of the EU, resolved outstandingdifferences on the law over more than seven hours of negotiationsthat concluded late yesterday.