Fidelity Investments, the world's largest independent fund manager, wants tighter rules governing mutual fund trading to stamp out widespread abuses which have rocked confidence in the $7 trillion (€5.6 trillion) US industry.

Central to Fidelity's proposed new system would be the creation of a clearing-house to handle all trades which would be overseen by regulators and identify individuals making trades in mutual funds - something which is not possible under the present system.