The potential impact of digitisation upon the regulation of financial markets and products

2020 ◽  
pp. 118-141
Author(s):  
Andreas Kokkinis ◽  
Christian Twigg-Flesner
Keyword(s):  
Financial Markets ◽  
Regulation Of Financial Markets ◽  
Potential Impact

Regulation of Financial Markets

2013 ◽  
Author(s):  
Matti Raudjjrv ◽  
Manfred O. E. Hennies
Keyword(s):  
Financial Markets ◽  
Regulation Of Financial Markets

Financial Markets and Exchanges Law

2021 ◽  
Keyword(s):  
Financial Markets ◽  
New Technology ◽  
Payment Systems ◽  
Regulation Of Financial Markets ◽  
Market Location ◽  
Clearing And Settlement ◽  
The Uk ◽  
Securities Trading ◽  
Market Infrastructure ◽  
Financial Technology

The book provides a comprehensive and authoritative analysis on the regulation of financial markets and market infrastructure. It focuses on stock markets and exchanges, associated trading, clearing, and settlement, and on payment systems, set in their historical and current contexts. This new edition addresses a number of major developments that have impacted the UK, wider European and international financial markets, such as within the UK, the PRA, the FCA and the Bank of England have become established financial regulators, each with its distinguishing responsibilities; MiFID has been substantially revised and strengthened through new directly applicable EU regulation; MiFID 2 also addresses the challenges posed by the use of fast-technology such as high frequency and algorithmic trading; and new technology is beginning to make an impact on the infrastructure of financial markets. This new edition includes updated content on the growing importance of financial technology with two new chapters on the emerging impact of financial technology on markets and on the regulation of markets. There is also a new chapter on MiFID 2 and MiFIR – the new securities trading architecture that will see the introduction of a new trading venue as well as significant changes to and the pre- and post-trade transparency and reporting regime. The introduction of mandatory trading of derivatives on trading venues is addressed together with the related post-EMIR regime for the mandatory clearing of certain classes of derivatives. Chapters on the role of the European Commission and ESMA have been updated, and consideration is given to the possible implications of Brexit for market location and access

scholarly journals A capability framework for financial market regulation

2017 ◽  
Author(s):  
Rutger Claassen
Keyword(s):  
Financial Markets ◽  
Market Failure ◽  
Capability Approach ◽  
Martha Nussbaum ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Academic Literature ◽  
Regulation Of Financial Markets ◽  
Do So ◽  
The Capability Approach

This chapter is about normative justifications for regulating markets. In leading handbooks as well as in the academic literature, a split is often made between economic justifications (based on the theory of market failure) and social justifications (mainly around considerations of paternalism and distributive justice). The chapter questions this dichotomy and calls for the development of an ethically coherent framework for market regulation. To do so, the chapter proposes to build on the capability approach, first developed by economist Amartya Sen and philosopher Martha Nussbaum. A capability approach to regulation would hold that markets should be regulated to the extent necessary for realizing a set of basic capabilities. The chapter discusses existing applications to property law and contract law and extends them into the outlines of a general theory of regulation. The final part illustrates the promises of such an approach with respect to the regulation of financial markets.

Cryptoliquidity: the blockchain and monetary stability

2019 ◽  
Vol 9 (2) ◽  
pp. 227-252 ◽  
Author(s):  
James Lee Caton
Keyword(s):  
Financial Markets ◽  
Aggregate Demand ◽  
Macroeconomic Fluctuations ◽  
Demand For Money ◽  
Policy Regime ◽  
Content Type ◽  
Blockchain Technology ◽  
Regulation Of Financial Markets ◽  
Money Creation ◽  
Money Holding

Purpose The development of blockchain and cryptocurrency may alleviate the economic strain associated with recession. Economic recessions tend to be aggregate-demand driven, meaning that they are caused by fluctuations in the supply of or demand for money. Holding monetary policy as solution assumes that stability must arise from outside of the economic system. Under a policy regime that allows innovations in blockchain to develop, blockchain technology may promote a money supply that is responsive to changes in demand to hold money. The purpose of this paper is to suggest that cryptocurrencies present an opportunity to profitably implement rules that promote macroeconomic stability. In particular, cryptocurrency that is asset-backed may provide a means for cheaply attaining liquidity during a crisis. Design/methodology/approach The role of cryptocurrency in promoting macroeconomic equilibrium is approached through the lens of monetary theory. Moves away from macroeconomic equilibrium necessitate either a change in the average price of money or a change in the quantity of money, or a change in portfolio demand for money. Cryptocurrency promotes an increase, however this requires the alignment of policy regulating the use of cryptocurrency, reduction in taxes placed on the use of cryptocurrency and cryptocurrency protocol. Findings Cryptocurrency is unlikely to become legal tender, but it may alleviate macroeconomic fluctuations as a near money that provides liquidity and whose supply is sensitive to changes in demand to hold money and money-like substitutes. This role might be inhibited if policy stifles the development of cryptocurrencies and blockchain technology. Research limitations/implications New financial innovations like cryptocurrencies can be analyzed applying the equation of exchange in light of the mechanics of money creation under conditions of disequilibrium. Monetary disequilibrium may be promoted by policy that causes bottlenecks in financial markets. Originality/value Theory of monetary disequilibrium has broad implications for the development and regulation of financial markets. This theory has not been applied to the development of cryptocurrency markets.

EU markets standards deadlines may be over-ambitious

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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