International Review of Equity Market Structure Regulation

2019 ◽  
Author(s):  
John Gulliver
Keyword(s):  
Market Structure ◽  
Equity Market ◽  
International Review ◽  
Structure Regulation

scholarly journals Liquidity, Trading, and Price Determination in Equity Markets: A Finance Course Application

2021 ◽  
pp. 21-49
Author(s):  
Deniz Ozenbas ◽  
Michael S. Pagano ◽  
Robert A. Schwartz ◽  
Bruce W. Weber
Keyword(s):  
Market Structure ◽  
Price Discovery ◽  
Investment Decision ◽  
Equity Markets ◽  
Regulatory Environment ◽  
Trading Costs ◽  
Price Determination ◽  
Liquidity Trading ◽  
Portfolio Decision ◽  
Structure Regulation

AbstractTrading is the implementation of an investment decision. After a portfolio decision has been made by a portfolio manager, it must be implemented, and especially for handling large orders and navigating stressful markets, specific skills and responsibilities are needed that require the expertise of a professional trader. However, the efficiency with which orders are handled and turned into trades depends, not just on traders’ abilities, but also on a market’s liquidity, on the design of the marketplace where shares are traded, and on the regulatory environment. In this chapter, we cover trading costs, liquidity, volatility, price discovery, market structure, and market structure regulation.

scholarly journals Equity Market Structure Regulation: Time to Start Over

2021 ◽  
pp. 1
Author(s):  
Paul Mahoney
Keyword(s):  
Market Structure ◽  
Equity Market ◽  
Securities And Exchange Commission ◽  
Market Participants ◽  
The Past ◽  
Past Half Century ◽  
The Social ◽  
Private Incentives ◽  
Regulatory Mandates ◽  
Past Half

Over the past half-century, the U.S. Securities and Exchange Commission (SEC)’s regulations have become key determinants of the way in which stocks trade and the fees that exchanges charge for their services. The current equity market structure rules are contained primarily in the SEC’s Regulation NMS. The theory behind Regulation NMS is that a system of dispersed markets operating pursuant to SEC-mandated information and order routing links will provide the benefits of consolidation and competition simultaneously. This article argues that Regulation NMS has failed in that quest. It has produced fragmented markets and created questionable incentives for market participants, possibly producing socially excessive investments in trading speed and secrecy. It also discourages exchange innovation, provides insufficient incentives for traders to price orders aggressively, requires brokers to act against their customers’ interests, and forces the SEC to act as a price regulator. The article contends that the SEC should replace Regulation NMS with three simple design principles—issuer choice, exchange autonomy, and regulatory consistency. These would allow market forces, rather than regulatory mandates, to determine the design and pricing of trading platforms and the trading strategies of broker-dealers. They would better align the private incentives of trading platforms with the social objectives of improving liquidity and price discovery.

Volatility undercuts bitcoin’s effort to go mainstream

2021 ◽  
Keyword(s):  
Market Structure ◽  
Euro Area ◽  
Market Price ◽  
Central Banks ◽  
Equity Market ◽  
Bond Yields ◽  
Fiscal Stimulus ◽  
Content Type ◽  
Bubble Bursting ◽  
Dot Com

Significance Bitcoin is benefiting from the growing institutionalisation of the investor base for digital tokens, and the appeal of crypto-assets as a hedge against the debasement of currencies by money-printing central banks. Having reached an all-time high of USD41,823 on January 8, bitcoin, the world’s most widely traded cryptocurrency, has since lost nearly 20%. Impacts Wild price swings and the lack of a central market structure will limit bitcoin’s ability to challenge gold as a hedge against inflation. The S&P 500 equity market price-to-earnings ratio is near its highest since the 2000 dot-com crash, raising fears of the bubble bursting. The prospect of more aggressive US fiscal stimulus is driving a sell-off in treasuries, raising fears of a disorderly rise in bond yields. Europe’s COVID-19 resurgence raises the prospect of more stimulus, but also the scope for more tension about this among euro-area states.

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