Financial Markets Analysis: A Critical Analysis of Dark Pools

EU markets standards deadlines may be over-ambitious

Emerald Expert Briefings ◽

10.1108/oxan-db205908 ◽

2015 ◽

Keyword(s):

Financial Markets ◽

Market Manipulation ◽

Fixed Income ◽

Technical Standards ◽

Content Type ◽

Market Abuse ◽

Regulatory Standards ◽

Regulation Of Financial Markets ◽

Dark Pools ◽

Eu Financial Markets

Subject Proposed new regulatory standards for EU financial markets. Significance The European Securities and Markets Authority (ESMA) has published comprehensive new proposed technical standards, covering trading, market abuse and securities settlement. The standards aim to increase the transparency, safety and resilience of European financial markets, as well as enhance investor protection. They comprise some of the most important post-crisis regulation of financial markets. Impacts The new standards will tighten regulation of high-frequency trading and 'dark pools'. They will also cover trading in commodities, fixed income, futures and derivatives. Regulators hope that greater transparency will reduce market manipulation and enhance price discovery, promoting more efficient markets.

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Market devices and structural dependency: The origins and development of ‘dark pools’

Finance and Society ◽

10.2218/finsoc.v5i1.3015 ◽

2019 ◽

Vol 5 (1) ◽

pp. 1-19 ◽

Cited By ~ 2

Author(s):

Donald MacKenzie

Keyword(s):

Field Theory ◽

Financial Markets ◽

Network Theory ◽

Actor Network Theory ◽

Investment Banks ◽

Actor Network ◽

Trading Systems ◽

The Us ◽

Soft Dollars ◽

Dark Pools

‘Dark pools’ are private, electronic share-trading systems in which participants cannot see each other’s buy and sell orders. This article shows that the development of these material ‘market devices’ was strongly shaped by the structural dependency of their intended clientele (fund-management firms) on the big investment banks, particularly the indirectly monetary mechanism of dependency known in the US as ‘soft dollars’. The article’s underlying argument is that (a) the sociological analysis of financial markets requires bringing together the focus on materiality of, for example, actor-network theory with an emphasis on structural advantage such as that found in field theory; and (b) that both actor-network and field theory approaches could be strengthened by a stronger focus on mundane but important monetary mechanisms such as ‘soft dollars’.

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Principles of Monetary and Financial Sustainability and Wellbeing in a post-COVID-19 World: the crisis and its management review

10.20944/preprints202103.0690.v1 ◽

2021 ◽

Author(s):

Jesús Huerta de Soto ◽

Antonio Sánchez-Bayón

Keyword(s):

Financial Markets ◽

Critical Analysis ◽

Public Spending ◽

Central Banks ◽

Austrian Economics ◽

Government Policies ◽

Financial Sustainability ◽

Negative Effects ◽

Economic Cycles ◽

Coercive Intervention

This paper analyses the COVID-19 crisis and its management, under the Austrian Economics. The attention is focused in the States’ coercive intervention, to evaluate the positive or negative effects of pandemic, according to the Principles of Political Economy and the theory of capital and economic cycles. The paper examines the specific case of massive intervention by governments and, especially, central banks in monetary and financial markets to deal with the pandemic by seeking to lessen its effects. Also, it is offered a critical analysis on simultaneous government policies involving taxes and an increase in public spending which are presented as the panacea and universal remedy for the evils that afflict the society, instead of promoting the transit to Wellbeing Economics. To conclude the review, there is a proposal of paradigm review, in the way to offer a sustainable model.

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Criminal Stain on a White Collar: A Critical Analysis of Proposed Changes to Directors’ Liabilities

10.26686/wgtn.17006356 ◽

2021 ◽

Author(s):

◽

Stephen Cranney

Keyword(s):

Financial Markets ◽

Critical Analysis ◽

Criminal Liability ◽

Civil Liability ◽

White Collar ◽

Finance Company ◽

Limited Partnerships

<p>The recent finance company collapses have highlighted the need for improved director accountability. However where is the appropriate point to draw the line, which if crossed, imposes criminal liability? The Financial Markets Conduct Bill and the Companies and Limited Partnerships Amendment Bill both attempt to redefine when criminal liability will attach to directors. By assessing the proposed changes in the light of two recent cases, it can be seen that under the proposed changes, directors have the potential to be found criminally liable for less than dishonest behaviour. This raises the issue of whether criminal liability is appropriate in regards to directors’ actions, or whether a civil liability scheme would be more appropriate. This paper looks at the current law and the proposed changes to directors’ liability, and by considering the situations of two failed finance companies, attempts to draw conclusions as to the effects of such changes.</p>

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Blockchain as a determinant of bitcoin value

The Review of Economics, Finance & Investments ◽

10.53752/refi.2020.1.10 ◽

2021 ◽

Vol 1 (1) ◽

Author(s):

Robert W. Włodarczyk

Keyword(s):

Financial Markets ◽

Value Creation ◽

Critical Analysis ◽

Financial Innovation ◽

Economic Effects ◽

Distributed Data ◽

Blockchain Technology ◽

Public Data ◽

The Subject ◽

Currency Competition

The article discusses the determinants of the bitcoin (BTC) price value, with particular emphasis on blockchain technology. The method of critical analysis of the literature on the subject was applied, and the state of knowledge in this field was established by juxtaposing different views of researchers on the BTC price value. It has been proven that BTC, being unquestionably a financial innovation, has been subjected to a free valuation of its price in the markets. While observing the development of BTC quotations, potential causes of numerous fluctuations in its market valuation were searched for. The article shows that the expectations related to the use of BTC are relatively highly valued by investors in modern financial markets. A more efficient currency, competition between currencies or the provision of new technological solutions may bring benefits to markets and economies, which, discounted at the present time, generate a certain value. Therefore, the paper shows that the BTC value creation mechanism is therefore different from that of fiat currencies. It has also been confirmed that the promotion of one of the most popular distributed data registers, which is blockchain, is of great value for BTC. BTC has led to the development of blockchain technology that is used in various segments of the economy. Basing BTC's operation on a public data register is the strength of the entire BTC network, but it also brings many risks and uncertainties. Further, research should focus on searching for the economic effects that result from the development of blockchain technology in modern economies.

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Effects of dark pools on financial markets’ efficiency and price discovery function: an investigation by multi-agent simulations

Evolutionary and Institutional Economics Review ◽

10.1007/s40844-015-0020-3 ◽

2015 ◽

Vol 12 (2) ◽

pp. 375-394 ◽

Cited By ~ 8

Author(s):

Takanobu Mizuta ◽

Shintaro Kosugi ◽

Takuya Kusumoto ◽

Wataru Matsumoto ◽

Kiyoshi Izumi

Keyword(s):

Financial Markets ◽

Price Discovery ◽

Multi Agent ◽

Dark Pools

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Criminal Stain on a White Collar: A Critical Analysis of Proposed Changes to Directors’ Liabilities

10.26686/wgtn.17006356.v1 ◽

2021 ◽

Author(s):

◽

Stephen Cranney

Keyword(s):

Financial Markets ◽

Critical Analysis ◽

Criminal Liability ◽

Civil Liability ◽

White Collar ◽

Finance Company ◽

Limited Partnerships

<p>The recent finance company collapses have highlighted the need for improved director accountability. However where is the appropriate point to draw the line, which if crossed, imposes criminal liability? The Financial Markets Conduct Bill and the Companies and Limited Partnerships Amendment Bill both attempt to redefine when criminal liability will attach to directors. By assessing the proposed changes in the light of two recent cases, it can be seen that under the proposed changes, directors have the potential to be found criminally liable for less than dishonest behaviour. This raises the issue of whether criminal liability is appropriate in regards to directors’ actions, or whether a civil liability scheme would be more appropriate. This paper looks at the current law and the proposed changes to directors’ liability, and by considering the situations of two failed finance companies, attempts to draw conclusions as to the effects of such changes.</p>

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Central counterparties – risk minimizers?

The Central European Review of Economics and Management ◽

10.29015/cerem.594 ◽

2018 ◽

Vol 2 (4) ◽

pp. 87

Author(s):

Magdalena Maria Kozińska

Keyword(s):

Content Analysis ◽

Financial Markets ◽

Research Methods ◽

Critical Analysis ◽

Positive Impact ◽

Too Big To Fail ◽

Market Participants ◽

Central Counterparties ◽

Risk Managers ◽

Desk Research

Aim: Recently, central counterparties (CCPs) have gained on popularity due to their positive impact on the financial markets during crisis (limiting contagion on cleared instruments). The post-crisis reforms favored CCPs as risk minimizers. The aim of the article is to critically assess the functioning of the CCPs and their role in the financial system.Design / Research methods: In order to attain the article’s goal, the critical analysis of the CCPs’ activity was performed. For that purpose, the regulations and mechanisms for CCPs’ functioning were considered. The next step was the analysis of the scale of CCPs’ activity and dependencies between CCPs and various market participants based on the accessible data. Based on the desk research and content analysis, the risks of CCPs were derived.Conclusions / findings: CCPs are not risk minimizers, but they are risk managers (redistributors). Moreover, due to the significant increase in the their importance for the stable functioning of the financial markets, they should be treated as too big to fail institutions.Originality / value of the article: The literature, especially polish, regarding the assessment of the CCPs’ roles and functions is relatively scarce, especially concerning the potential dangers conneted with them. The article contains the unbiased assessment of CCPs’ impact on the financial markets and proposes inventive treatment of CCPs as risk redistributors, which are too big to fail.

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