Former City minister Lord Paul Myners has urged the Financial Conduct Authority to do more to protect financial stability, which he believes could be at risk from the way exchange-traded products track illiquid assets.

In an interview with Financial News, Myners warned that increased trading in ETPs could amplify market volatility in situations such as when redemptions are triggered, leading to sales of the underlying asset. This, in turn, could destabilise markets, particularly where they lack liquidity.