Europe needs further regulation to tackle rising market volatility and manage financial products and services that have become more popular in recent years, Carlos Tavares, vice-chairman of the European Securities and Markets Authority, said on Monday.

"Whether we like it or not, more regulation will be needed. New regulation should be realistic and we should bear in mind in some cases we're dealing with completely new issues and that we can make mistakes," Tavares told participants of a Marketforce and IEA-sponsored European exchanges summit.