Equities and Exchanges, 1993–2006

2020 ◽  
pp. 223-266
Author(s):  
Ranald C. Michie
Keyword(s):  
Stock Markets ◽  
Electronic Markets ◽  
Capital Controls ◽  
Stock Exchanges ◽  
Rapid Communication ◽  
Heavy Users ◽  
Alternative Means

By the 1990s the pressures on traditional stock exchanges were so intense that inertia was no longer an option. These pressures included the globalization of investment, deregulation, dismantling of capital controls, cheap and rapid communication, and powerful computing, The effect was to undermine the grip that exchanges had once exerted over national stock markets. No longer were the members of exchanges the filter through which buying and selling passed because of the control they exercised over access to both information and the market. Alternative means of trading stocks were proliferating, undermining and then destroying the exclusive privileges long enjoyed by those belonging to stock exchanges. Leading this attack on the power of stock exchanges were the megabanks. As these banks grew in scale and scope, extending their activities around the globe, they were either able to internalize many transactions or trade between themselves. In the process they cut out the exchanges, bypassing, and the charges and restrictions they imposed. There had long been an ambiguous relationship between banks and exchanges, as they were both rivals and heavy users. The combination of the megabanks, interdealer brokers, and electronic markets was rendering exchanges redundant in the 1990s, forcing them to respond through diversification and mergers.

scholarly journals Influence of world stock markets on the development of the stock market in Ukraine

2021 ◽  
Vol 18 (4) ◽  
pp. 223-240
Author(s):  
Inna Shkolnyk ◽  
Serhiy Frolov ◽  
Volodymyr Orlov ◽  
Viktoriia Dziuba ◽  
Yevgen Balatskyi
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Mutual Influence ◽  
Stock Exchanges ◽  
World Federation ◽  
Pairwise Correlation ◽  
Stock Market Performance ◽  
The Us ◽  
The World ◽  
Global Stock Markets

Viewing the development of the stock market in Ukraine, the economy, which world financial organizations characterize as small and open, is largely determined by the trends formed by the global stock markets and leading stock exchanges. Therefore, the study aims to analyze Ukraine’s stock market, the world stock market, stock markets in the regions, and to assess their mutual influence. The study uses the data of the World Federation of Exchanges and National Securities and Stock Market Commission (Ukraine) from 2015 to 2020. Stock market performance forecasts are built using triple exponential smoothing. Based on pairwise correlation coefficients, the existence of a significant dependence in the development of the world stock market on the development of the American stock market was determined. Regarding the Ukrainian stock exchanges, only SE “PFTS” demonstrated its dependence on the US stock market. The results of the regression model based on an exponentially smoothed series of trading volumes in all markets showed that variations in the volume of trading on the world stock market are due to the situation on the US stock markets. Trading volume dynamics on Ukrainian stock exchanges such as SE “PFTS” and SE “Perspektiva” is almost 50% determined by the development of stock markets in the American region. Although Ukraine is geographically located in Europe, the results show a lack of significant links and the impacts of stock markets in this region on the major Ukrainian stock exchanges and the stock market as a whole.

The Impact of Regulatory Standards, Interest Rates and Trading Volume on Volatility Transmission between Cross-Listed European Equities

2009 ◽  
Vol 10 (1) ◽  
pp. 89-105
Author(s):  
Koulakiotis Dasilas ◽  
Tolikas Molyneux
Keyword(s):  
Interest Rates ◽  
Stock Markets ◽  
Trading Volume ◽  
Positive Impact ◽  
Stock Exchanges ◽  
Volatility Transmission ◽  
Volatility Spillovers ◽  
Regulatory Standards ◽  
European Stock Markets ◽  
The Impact

This paper investigates the relationship between volatility transmission and stock market regulatory structures, interest rates and trading volume for European securities which are cross-listed on stock exchanges of higher, lower or similar regulatory standards compared to their home stock markets. The empirical results suggested that the regulatory environment has a significant impact on volatility spillovers and the level of interest rates and trading volume have a positive impact on the magnitude and persistence of these volatility spillovers. These findings have potentially important implications for both regulators and investors who are concerned with the effectiveness of legislation aiming to harmonise the European stock markets and the effects of volatility transmission on investment positions across European stock markets.

How can we Engineer Stock Markets like NSEIL with BSE SENSEX index data using String Theory

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Soumitra Mallick
Keyword(s):  
String Theory ◽  
Stock Market ◽  
Stock Markets ◽  
Consumer Choice ◽  
Optimal Growth ◽  
Stock Exchanges ◽  
Sales Volume ◽  
Fixed Prices ◽  
Optimal Growth Rate ◽  
Over Time

<span class="fontstyle0">This paper considers the problem of sustainably developing<br />stock exchanges like NSEIL and measurable index systems like BSE SENSEX by developing strategies to achieve sales volume which achieve optimal<br />growth rates. Experimental data on BSE SENSEX and Companies over time<br />are used which closely mimics now active NSEIL. This requires consideration<br />of consumer choice in intertemporal markets with endogenous stock market<br />products. A sequence of five steps is derived to characterize the venturing<br />technology which will achieve such desired stock market sales volume with<br />fixed prices and hence the optimal growth rate. It is derived how String Theory is sufficient to build such stock markets in value and volumes by using<br />depositories. </span>

scholarly journals The January barometer in emerging markets: new evidence from the Gulf Cooperation Council stock exchanges

2019 ◽  
Vol 16 (4) ◽  
pp. 61-71
Author(s):  
Costas Siriopoulos ◽  
Layal Youssef
Keyword(s):  
Emerging Markets ◽  
Stock Markets ◽  
Predictive Power ◽  
Gulf Cooperation Council ◽  
Least Square ◽  
January Effect ◽  
Stock Exchanges ◽  
Market Anomalies ◽  
Gulf Countries ◽  
International Investors

International investors’ interest in the capital markets in the region of Gulf countries has dramatically increased in last two decades. Thus, it would be motivating to investigate their characteristics, where the January anomaly is a major one. This paper studies the veracity of the January effect rule in the Gulf Cooperation Council (GCC) stock markets and examines the predictive power of January returns. Seven GCC stock markets are tested – the market indices in Bahrain, Abu Dhabi, Dubai, Kuwait, Oman, Qatar, and Saudi Arabia – from January 1, 2001 until December 31, 2018, a timeframe which has rarely been analyzed. Ordinary least square (OLS)-based dummy variable regression equation was used as the conventional econometric procedure in the works of financial calendar anomalies in stock markets. Some evidence is reported for the markets of Dubai and Kuwait. The paper also provides an additional explanation for the performance of stock market of Kuwait. The findings are opposite to the well documented evidence that emerging markets are less efficient and hence it is likely that several market anomalies are further pronounced. The results suggest that the predictive power of the January anomaly can be considered as a temporary anomaly in the GCC markets, since it is concentrated in only a couple of GCC markets and does not persist in time.

scholarly journals Integration of Ukraine into European Union securities market

2021 ◽  
Vol 69 (2) ◽  
pp. 168-178
Author(s):  
M. Savchenko
Keyword(s):  
European Union ◽  
Stock Market ◽  
Stock Markets ◽  
Rapid Development ◽  
Legal Regulation ◽  
Securities Market ◽  
Stock Exchanges ◽  
The European Union ◽  
Eu Countries ◽  
The Eu

The paper deals with the main parameters of the Ukrainian securities market at the current stage, identifies its functioning problems, gives a set of measures for the effective implementation of Ukraine's desire to integrate the national stock market into the European Union. Compared with the stock markets of the EU countries, the domestic securities market is underdeveloped, poorly regulated and illiquid, therefore there is the need to develop it and implement the European legislative initiatives. The paper covers the basic laws in the field of legal regulation of the Ukrainian and EU securities market. The investigation includes the results of the research of the current experience in leading European countries in terms of capitalization of the largest stock exchanges in Europe. The classification of 5 largest European stock exchanges is given and the influence of COVID-19 virus on their activity is analyzed. The main trends in the field of securities investment market of the largest stock exchanges in Europe and Ukraine are led. While examining statistical data concerning the capitalization of European stock exchanges in comparison with the PFTS of Ukraine in 2019, the LSE (London Stock Exchange) ranks 1st with €3.86 bn., 2nd place is taken by Euronext – €3.4 bn., 3rd place by Deutsche Börse having capitalization volume at the level of €1.9 bn., and PFTS Ukraine – €0.17 bn., which indicates that Ukrainian securities market is insufficiently elaborated. Nowadays, the Ukrainian securities market repeats European historical development trends, and at this stage it largely depends on the directions of development that international stock markets can take. Changes in European securities markets are extremely rapid and require competent response from regulatory structures. The rapid development of the European stock market, accompanied by the emergence of advanced technologies in the field of securities and new financial instruments, make it necessary to monitor all the changes and innovations that happen in the Ukrainian securities market in order to develop more effective recommendations for improving its functioning and regulation. In addition, integration with the European Union requires deeper and more radical reforms of the domestic state administration, macroeconomic regulation, property relations, and anti-corruption policy. Only a large-scale and complete reform will enable progressive renewal and effective, socially responsible integration into the EU countries, taking into account national interests.

scholarly journals How US wages effect post-socialist European stock markets: an empirical study

2018 ◽  
Vol 7 (4) ◽  
pp. 179 ◽  
Author(s):  
Deniz Ilalan
Keyword(s):  
Monetary Policy ◽  
Empirical Study ◽  
Stock Markets ◽  
Stock Exchanges ◽  
Hourly Wage ◽  
Fed Funds Rate ◽  
Average Hourly Wage ◽  
Wage Increases ◽  
European Stock Markets ◽  
The Impact

Following the famous tapering speech of Bernanke on 2013, US non-farm payroll data became the leading indicator for the monetary policy of Fed. After midst of 2014 Fed shifted its attention to average hourly wage increases which was regarded as the determinant of inflation. As inflation is closely linked with possible increments of Fed funds rate, investors began to follow US wages more closely. We investigate the impact of US wages especially through concentrating on some Post-Socialist European stock markets. As US wages are found to Granger cause these stock exchanges, interestingly with domestic wages, a similar causation relation could not be achieved. This brings out the question whether wages are indeed an indicator for stock markets or not. 

scholarly journals The Dawn of the Network Society

2021 ◽  
pp. 115-157
Author(s):  
Jean-Michel Johnston
Keyword(s):  
Stock Markets ◽  
Network Society ◽  
Fake News ◽  
Crimean War ◽  
The Public ◽  
Rapid Communication ◽  
Time Sensitivity ◽  
The Press ◽  
News Agencies ◽  
The Creation

This chapter follows the implementation of telegraphic communication during the so-called era of ‘reaction’ in the 1850s. It investigates the influence of parliaments in Prussia and Bavaria in shaping the initial outline of state networks and the conditions of their use by the public, as well as the emergence of a regional telegraph association, the Deutsch-Österreichischer Telegraphen-Verein. It traces the adoption of telegraphic communication by banks, stock markets, and news agencies across Germany, and the creation of a ‘two-speed’ society, as privileged sections of the economic bourgeoisie (Wirtschaftsbürgertum) in commercial centres adopted more rapid and coordinated rhythms of business. It also considers the efforts of governments to keep up with the pace of communication by managing the circulation of information to the press, and by adopting the technology for policing purposes. This chapter also describes the ambiguous culture of progress which surrounded the implementation of telegraphic communication. It does so using a variety of sources, from articles in Die Gartenlaube and Kladderadatsch to the work of the economist Karl Knies. While some praised the technology’s capacity to ‘annihilate’ space, others feared that the time sensitivity it engendered among certain users, businessmen in particular, was practically pathological. Both the advantages of rapid communication and its potentially nefarious consequences were highlighted during the period, from early instances of ‘fake news’ during the Crimean War to the unstoppable diffusion of the ‘Panic of 1857’. The work of Karl Knies, meanwhile, illustrates the ways in which these developments influenced new understandings of society and the economy.

scholarly journals Lessons for Euro markets from the first wave of COVID-19

2021 ◽  
Vol 18 (1) ◽  
pp. 285-298
Author(s):  
Costas Siriopoulos ◽  
Argyro Svingou ◽  
Jagadish Dandu
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Impulse Response Function ◽  
Decomposition Methods ◽  
Var Model ◽  
Stock Exchanges ◽  
Panel Var ◽  
Chinese Stock Market ◽  
European Stock Markets ◽  
The Impact

Although the coronavirus pandemic hit Europe in the early days of 2020, European stock markets had signaled fluctuations in the days before. This paper assesses the observed volatility on European stock exchanges and searches for its sources during the first four months of 2020. To investigate the issue, a panel VAR model is adopted, and the generalized impulse response function and the variance decomposition methods are used. The estimations show that about 34% of the volatility in European stock markets is due to the Chinese stock market, while 7% is due to international uncertainty, as measured by VIX. The impact of pandemic cases and deaths on European stock markets is negligible, below 1%. This means that the European stock market faced two risk elements: the first is the transmission volatility from the Chinese stock market, and the second is the international uncertainty. The findings also support the view that COVID-19 is more like a systematic risk.

scholarly journals Intangible investments and voluntary delisting

2019 ◽  
Vol 27 (2) ◽  
pp. 224-243
Author(s):  
Henry Agyei-Boapeah ◽  
Yuan Wang ◽  
Abongeh A. Tunyi ◽  
Michael Machokoto ◽  
Fan Zhang
Keyword(s):  
Information Asymmetry ◽  
Stock Markets ◽  
Intangible Assets ◽  
Stock Exchanges ◽  
Accounting Fraud ◽  
Chinese Firms ◽  
Content Type ◽  
Listed Firms ◽  
Alternative Sources ◽  
The Cost

Purpose Drawing on a cost–benefit perspective, this paper aims to explore the relation between information asymmetry and the decision to delist from stock exchanges during periods of uncertainty. Specifically, it investigates the role of firms’ intangible investments and the availability of alternative sources of finance on the decision to delist from foreign stock markets. Design/methodology/approach The study takes advantage of a natural experiment in which cross-listed Chinese firms facing uncertainty in US markets because of widespread allegations of accounting fraud decide on whether to remain listed or voluntarily delist. The decision to delist is modelled as a function of the level of information asymmetry between firms and their stakeholders and the availability of alternative financing, while controlling for other drivers of firms’ delisting decision. The data used in the empirical analyses cover a hand-collected sample of 91 Chinese firms voluntarily delisting from US stock markets between 2010 and 2016. This sample is matched with an equal sample of Chinese firms, which remained listed in US stock markets during the same period. A probit regression model accounting for fixed effects is used. Findings There is a significant positive relationship between investments in intangible assets and firms’ decision to delist. Moreover, the positive intangibles−delisting nexus is accentuated by the availability of alternative sources of financing. Collectively, the results are consistent with the theoretical argument that the higher information asymmetry associated with intangible assets may increase the cost of staying listed on stock exchanges, particularly in periods of uncertainty (captured in this study by accounting fraud allegations targeting cross-listed firms). The results have important implications for corporate managers, capital market participants and policymakers. Practical implications Policymakers and standard setters must continue to work to improve the accounting regulations of intangible assets and to promote the adoption of global accounting standard across both emerging and advanced economies. Originality/value The study exploits a unique natural experimental setting to explore why cross-listed firms delist. The underlying theoretical framework to explain delisting is new. This framework captures the role of information asymmetry, uncertainty and alternative financing in explaining the cost and benefits of remaining listed on a foreign market.

The performance of Bursa Malaysia and its causality effect with South Korea, Taiwan and Japan stock exchanges : 2000 – 2004

2006 ◽  
Vol 3 (2) ◽  
pp. 41
Author(s):  
Omar Samat ◽  
Zuraidah Ismail ◽  
Jaslin Md Dahlan
Keyword(s):  
South Korea ◽  
Portfolio Management ◽  
Stock Markets ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
International Investors ◽  
Year 2000

This study examines the effect of returns from South Korea, Taiwan and Japan Stock Exchanges on the Bursa Malaysia in the year 2000 to 2004. The return from an individual stock exchange is no longer exclusive but with effect of globalization, it is also influenced by activities happening in other countries. The sources ofco-movements between stock markets are of great importance both for international investors and academics. A better knowledge of the underlying factors may improve portfolio management and help to assess the degree offinancial integration and efficiency.

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