Financial Market Securitization

How does each of these financial innovations, namely --financial market securitization, exchange trade funds (ETF), high frequency trading (HFT), & collateralization -- serving the key purposes of global financial market respectively?Financial Innovation has over the years been regarded as positive across Governments, posing wide influence over the Economy and the Market at large. Finance through its miracles has not only had a good track record of solving problems massive in size but have also been marred with the rhapsodies of melancholy and episodes of blasphemy and downward cycles in the history of Finance. Taking up from the subjectivity of the Instruments and their impacts, let’s analyze each of them one at a time.SECURITIZATION: Brought to life as an Instrument of Risk Transfer, Securitization in the form of CDO’s and CDS’s are one of the most talked about instruments in the current Market Scenario. It’s an instrument that’s worked wonders in allowing banks to free up its capital and enable extended credits, alongside helping in diversification of Portfolios with banks shedding off their concentration of risks and allowing investors buy risks that suit their appetite. Its adoption by European Financial Stability Funds