Algorithmic Trading and Market Regulation

2018 ◽  
pp. 232-259
Author(s):  
Yesha Yadav
Keyword(s):  
Information Dissemination ◽  
Strict Liability ◽  
Securities Regulation ◽  
Algorithmic Trading ◽  
Market Regulation ◽  
Rapid Rise ◽  
Policy Makers ◽  
Regulatory Law ◽  
Legal Concepts ◽  
Evidence And Proof

This chapter examines the interaction between automated, algorithmic markets and fundamental legal concepts in securities regulation, an area to which policy-makers have devoted little attention. Recent advances in communication technology have facilitated the rapid rise of algorithmic trading and automated market mechanics. This chapter surveys eight framework notions critical to regulation and discusses how these might apply in an automated marketplace. Specifically, it examines reasonableness; strict liability; foreseeability; contribution; scienter; damage and harm; evidence and proof; and disclosure and information dissemination. This analysis reveals how deeply-held assumptions guiding regulatory law sit uneasily in today’s complicated and fast-paced markets.

scholarly journals A critical review of corporate governance reforms in Malaysia

2017 ◽  
Vol 6 (1) ◽  
pp. 38-44 ◽  
Author(s):  
Ahmad Al-Hiyari
Keyword(s):  
Corporate Governance ◽  
Financial Statements ◽  
Business Environment ◽  
Market Regulation ◽  
Policy Makers ◽  
Corporate Managers ◽  
Accounting Scandals ◽  
Governance Practices ◽  
Capital Market Regulation ◽  
Local Business Environment

Following the East-Asian financial crisis in 1997 and the corporate accounting scandals, the shareholder’s confidence in the audited financial statements was adversely affected and regulators started to think seriously reforming the existing corporate governance practices. As a result, numerous initiatives were implemented to accelerate improvement of corporate governance practices. One of these initiatives was the Malaysian Code on Corporate Governance (MCCG). The code was derived from the approach applied by the British Hampel Committee, which attempt to mitigate the agency problem between corporate managers and outside owners. This study suggests that the British approach is unsuitable to Malaysian business environment. Particularly, the MCCG that had been lunched since 2011 ignore the uniqueness of Malaysia’s capital market, regulation environment and ownership structure. Therefore, the study recommends that policy makers and other regulators should consider the local business environment when establishing future code on corporate governance.

The effect of the JOBS act on analyst coverage of emerging growth companies

2019 ◽  
Vol 27 (1) ◽  
pp. 86-109
Author(s):  
Elena Precourt
Keyword(s):  
Stock Prices ◽  
Information Dissemination ◽  
Quiet Period ◽  
Firm Characteristics ◽  
Probability Models ◽  
Security Analysts ◽  
Policy Makers ◽  
Analyst Coverage ◽  
Content Type ◽  
Jobs Act

PurposeThe purpose of this paper is to examine the section of the Jumpstart Our Business Startups (JOBS) Act related to information dissemination by sell-side security analysts. The paper analyzes how the abolishment of the quiet period requirements for emerging growth companies (EGCs) changes the analyst initiation timing and market expectation of and reaction to the issuance of the analyst recommendations.Design/methodology/approachThis paper considers the effect of the abolishment of the quiet period requirements on analyst coverage initiations for EGCs with IPOs between January 2006 and December 2015 using regression analyses and probability models.FindingsThe results confirm the current anecdotal and empirical evidence that a shorter, de facto, quiet period exists. Analyst issue stronger average ratings for EGCs than for similar firms with IPOs before the JOBS Act. EGCs with initiations from multiple analysts also experience stronger positive market reaction than the firms with initial offerings before the JOBS Act. The market seems to anticipate which EGCs will have initiations and particularly which EGCs will have initiations from multiple analysts. The investors, however, do not fully anticipate the strength of actual recommendations.Practical implicationsThis paper is important for researchers, practitioners and policy-makers to understand how analysts impact the financial markets, how timing of analyst initiations affects stock prices of EGCs and what firm characteristics play a role in securing analyst coverage shortly after initial offerings.Originality/valueThis paper adds to the emerging literature on consequences of and changes brought by the JOBS Act. Specifically, this paper extends the limited literature on analyst initiations issued for firms with IPOs following the JOBS Act, timing of those initiations and magnitude of the market’s response to the initiations.

scholarly journals Problems in the regulatory policy of the drug market

2015 ◽  
Vol 49 (0) ◽  
Author(s):  
Nathália Molleis Miziara ◽  
Diogo Rosenthal Coutinho
Keyword(s):  
Drug Market ◽  
Pharmaceutical Market ◽  
Market Regulation ◽  
Point Of Sale ◽  
Drug Prices ◽  
Maximum Price ◽  
Regulatory Law ◽  
Regulation Policy ◽  
The Mean ◽  
Government Body

OBJECTIVE Analyze the implementation of drug price regulation policy by the Drug Market Regulation Chamber.METHODS This is an interview-based study, which was undertaken in 2012, using semi-structured questionnaires with social actors from the pharmaceutical market, the pharmaceuticals industry, consumers and the regulatory agency. In addition, drug prices were compiled based on surveys conducted in the state of Sao Paulo, at the point of sale, between February 2009 and May 2012.RESULTS The mean drug prices charged at the point of sale (pharmacies) were well below the maximum price to the consumer, compared with many drugs sold in Brazil. Between 2009 and 2012, 44 of the 129 prices, corresponding to 99 drugs listed in the database of compiled prices, showed a variation of more than 20.0% in the mean prices at the point of sale and the maximum price to the consumer. In addition, many laboratories have refused to apply the price adequacy coefficient in their sales to government agencies.CONCLUSIONS The regulation implemented by the pharmaceutical market regulator was unable to significantly control prices of marketed drugs, without succeeding to push them to levels lower than those determined by the pharmaceutical industry and failing, therefore, in its objective to promote pharmaceutical support for the public. It is necessary reconstruct the regulatory law to allow market prices to be reduced by the regulator as well as institutional strengthen this government body.

WHY DO SOME COUNTRIES UNDERTAKE STRUCTURAL REFORMS WHEN OTHERS DO NOT?

2010 ◽  
Vol 01 (01) ◽  
pp. 81-103
Author(s):  
ANDREW HUGHES HALLETT
Keyword(s):  
Labour Market ◽  
Imperfect Competition ◽  
Emerging Market ◽  
Market Regulation ◽  
Policy Makers ◽  
Fiscal Constraints ◽  
Official Policy ◽  
Labour Market Regulation ◽  
Tax Distortions ◽  
The Eu

It is widely accepted that structural, institutional and labour market reforms are essential for the development of the OECD and emerging market economies; and that argument has been incorporated into official policy in the EU as part of the Lisbon agenda. Yet there is little analysis in the economics literature of how these reforms should work, or of which reforms would be most effective. Similarly, there is no explanation of why policy makers extol the virtues of reform, but often fail to carry them out. Or why some countries embrace reform, but others in similar circumstances do not. To explain these differences we develop a general equilibrium model with imperfect competition, extended to include labour market imperfections and tax distortions. We find that fiscal constraints to be the principal reason that reforms do not get undertaken, though labour market regulation can be a serious complicating factor in certain cases. As a result, the reduction of tax distortions, rather than market or institutional reform, is usually the most effective type of reform. The implication is that we need models that combine different reform instruments and different distortions to analyse this kind of problem.

Influence of performance expectancy on commercial farmers’ intention to use mobile-based communication technologies for agricultural market information dissemination in Uganda

2016 ◽  
Vol 18 (4) ◽  
pp. 346-363 ◽  
Author(s):  
Benard Engotoit ◽  
Geoffrey Mayoka Kituyi ◽  
Musa Bukoma Moya
Keyword(s):  
Information Dissemination ◽  
Information Access ◽  
Communication Technologies ◽  
Mobile Technologies ◽  
Market Information ◽  
Agricultural Market ◽  
Policy Makers ◽  
Content Type ◽  
Behavioural Intentions ◽  
Performance Expectancy

Purpose This paper to examine the relationship between performance expectancy and behavioural intention to use mobile-based communication technologies for agricultural market information dissemination in Uganda. Design/methodology/approach A descriptive field survey method was adopted. A total of 302 commercial farmers and agribusiness traders in Eastern Uganda participated in the study from whom data were collected using self-administered questionnaires. Descriptive statistics, factor analysis, correlation and regression analyses were used in the study. Findings The findings reveal a significant positive relationship between performance expectancy and behavioural intentions to use mobile-based communication technologies for agricultural information access and dissemination. This implies that, commercial farmers’ behavioural intentions to use mobile-based communication technologies for agricultural market information dissemination and access will be influenced if they anticipate mobile-based communication technologies to offer greater performance in their daily transactions. Research limitations/implications This study was conducted in the context of resource constrained countries particularly in sub-Saharan Africa, however reflecting knowledge from other contexts. The study was conducted with a structured questionnaire being the main data collection tool, and this limited the study from collecting views outside the questions asked in the questionnaire. The variables studied could not be analysed for a long time, given that the study was cross-sectional in nature. Practical implications The study provides recommendations on how to further boost farmers’ behavioural intentions to use mobile-based communication technologies for agricultural information dissemination. Policy makers need to ensure that policies are put in place that encourage third party software developers and telecommunication companies to provide software products and solutions that are beneficial to the commercial farmers and can enable them complete their agricultural transactions in time. Social implications The study provides critical literature on the influence of performance expectancy on commercial farmers’ behavioural intentions to use mobile-based communication technologies for agricultural market information access and dissemination in resource constrained settings. Originality/value It is noted that farmers in Uganda are slowly progressing to newer mobile information and communication technology tools for market information access and dissemination; however, little is known as to why there is slow adoption of these mobile technologies for agricultural purposes; yet policy makers need to come up with proper strategies to encourage wide scale use of mobile technologies for agricultural market purposes.

Usability Evaluation of Pakistani Security Agencies Websites

2013 ◽  
Vol 4 (3) ◽  
pp. 57-69 ◽  
Author(s):  
Saqib Saeed ◽  
Irfan Ahmed Malik ◽  
Fazal Wahab
Keyword(s):  
Homeland Security ◽  
Information Dissemination ◽  
The Internet ◽  
User Needs ◽  
Front Line ◽  
Protective Measures ◽  
Policy Makers ◽  
Usability Problems ◽  
Survey Results ◽  
Focal Issue

In the post 9/11 world, homeland security has become focal issue for every country and governments are constantly improving security mechanisms to protect their citizens. Pakistan being the front line state in the war against terror is one of the heavily affected countries by terrorism. Timely information dissemination to public by security agencies can help citizens to be prepared and carry out protective measures. Information technology artifacts and the internet can be very beneficial for information dissemination purpose. In this paper the author specifically looked at Pakistani security agency websites 1to evaluate usability aspects. Initially we conducted a usability testing in lab setting, where our questions were based on Jakob Nielson’s heuristics. In order to further validate our findings the authors prepared a questionnaire and got it filled out by end users. Survey results highlighted that these websites have several usability problems which need to be rectified before they could effectively be used. The findings of the study help e-government practitioners and policy makers to develop their websites according to user needs.

Measuring price discovery in the European wheat market using the partial cointegration approach

2019 ◽  
Vol 47 (3) ◽  
pp. 1173-1200
Author(s):  
Teresa Vollmer ◽  
Helmut Herwartz ◽  
Stephan von Cramon-Taubadel
Keyword(s):  
Price Discovery ◽  
Price Volatility ◽  
Market Regulation ◽  
Futures Prices ◽  
Policy Makers ◽  
Market Participants ◽  
Policy Debates ◽  
Long Run ◽  
Wheat Market

Abstract Understanding price discovery in agricultural spot and futures markets is important for market participants and policy makers, because it can contribute to better management decisions and more informed policy debates on market regulation. Combining partial cointegration with state space modelling, we generate time-varying price discovery metrics for the European wheat market that allow for shifts in the long-run relationship. We find that the futures market dominates price discovery in terms of efficiency, but that this dominance is reduced in phases of higher price volatility. We find evidence of persistent shocks in the long-run relationship between spot and futures prices that appear to be related to variations in the quality of the wheat harvest, and to the concatenation of the futures prices.

Modelling the drivers for sustainable agri-food waste management

2018 ◽  
Vol 25 (3) ◽  
pp. 981-993 ◽  
Author(s):  
Ankur Chauhan ◽  
Roma Mitra Debnath ◽  
Surya Prakash Singh
Keyword(s):  
Waste Management ◽  
Food Waste ◽  
Information Dissemination ◽  
Management Planning ◽  
Policy Makers ◽  
Content Type ◽  
The People ◽  
Awareness Programs ◽  
Disaster Management Planning ◽  
And Training

Purpose The waste of invaluable agri-food produce is the concern of United Nations Organisation and all countries across the world. The purpose of this paper is to identify and model the drivers of agri-food waste management in India. Design/methodology/approach The interpretive structural modelling method is used to model the drivers in this study. This method helps in understanding the driver-dependent relationships among various drivers/criteria which are selected for studying. Findings The findings of the study vividly shows that the drivers such as disaster management planning, information dissemination, and training and awareness programs for farmers are most vital for tackling the issue. Research limitations/implications This work would help the policy makers in developing the effective policies regarding the management of agri-food waste in a sustainable manner. Practical implications This work would be very helpful for deeply understanding the causes of occurring waste and carefully handling it scientifically with a managerial perspective. Hence, it has the potential to reduce the generation of waste and saving the food for society. Social implications With the help of this study, the people, society, and underprivileged will be benefited directly. The savings in agri-food waste will not only help in controlling the prices of it but also its more availability would be beneficial for all in beating the hunger. Originality/value The identification of drivers for the sustainable management of agri-food is the novelty of this research.

scholarly journals REFORM IN THE SECURITIES CLEARING AND SETTLEMENT SYSTEM REGULATION IN UKRAINE

2016 ◽  
pp. 65-73
Author(s):  
О. Vygovskyy
Keyword(s):  
International Standards ◽  
Securities Regulation ◽  
Market Regulation ◽  
Settlement System ◽  
Settlement Systems ◽  
Regulatory Standards ◽  
Harmonization Process ◽  
Recent Developments ◽  
Clearing And Settlement ◽  
Legislative Framework

Recent developments in the regulation of securities clearing and settlement system in Ukraine aimed at harmonization of Ukrainian securities legislation with the European and international regulatory standards are discussed in this article. Attention is focused on the key provisions of the Law of Ukraine “On Depository System of Ukraine” which has become one of the cornerstones of the legislative framework for the securities market regulation. These provisions are compared with the rules of UNIDROIT Convention on Substantive Rules for Intermediated Securities and the level of harmonization of the Ukrainian securities legislation with the international standards is evaluated. Particular attention is paid to the concepts of intermediated securities and intermediaries, the issues of transfer and exercise of the rights in securities and rights attached to securities under the specified Law are explored, as well as the insolvency of intermediaries and its effect on their relations with the securities account holders is scrutinized. Attention is also devoted to the regulation of netting in Ukraine and major innovation introduced in legislation in this respect. The outcomes of the author’s analysis are summarized and general comments are provided as to the degree of finality of harmonization process in the Ukrainian securities regulation and regulation of clearing and settlement systems.

Sign in / Sign up

Export Citation Format

Share Document