scholarly journals Synergies, Risks and the Regulation of Stock Exchange Interconnection

2017 ◽  
Vol 11 (2) ◽  
pp. 291-322 ◽  
Author(s):  
Joseph Lee
Keyword(s):  
Financial Market ◽  
Stock Exchange ◽  
Major Obstacle ◽  
Stock Exchanges ◽  
Virtual Model ◽  
Clearing House ◽  
London Stock Exchange ◽  
Applicable Law ◽  
Market Infrastructure ◽  
The Eu

In this article, the author discusses the phenomenon of stock exchange interconnection and the synergies that it can bring. He investigates the methods and rationales behind various models currently employed such as the Euronext virtual model, the integration between the London Stock Exchange and the Milan Stock Exchange, and the ASEAN model in Asia. Despite the fact that there are many models of interconnection, none of them are truly interconnected in that they share a common trading platform, a single clearing house, and a single central securities depository. Divergence in national law remains a major obstacle to interconnection. This is because, notwithstanding a certain degree of harmonisation achieved in jurisdictions such as the EU, national laws continue to play an important role in regulating financial market infrastructure such as stock exchanges. Therefore, without a clear regime governing jurisdiction and applicable law, true interconnection is unlikely to be achieved.

scholarly journals A critical overview of the transparency and competitiveness of the London stock exchange

2018 ◽  
Vol 8 (2) ◽  
pp. 74-83 ◽  
Author(s):  
Muhammad Surajo Sanusi
Keyword(s):  
Transaction Costs ◽  
21St Century ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
London Stock Exchange ◽  
Market Participants ◽  
The World ◽  
Operational Activities ◽  
Technology Transformation ◽  
Critical Overview

This paper explores the operational activities of the London Stock Exchange in the 21st century to provide an overview of its operational transparency and competitiveness; the competition among its market participants and how it competes with other developed stock exchanges around the world. Evidence was found that suggests the manifestation of both competitive and uncompetitive practices in the London Stock Exchange. The presence of the key elements that enhance the competitiveness of the market, such as continued technology transformation, strategies that promote globalisation and regulatory flexibilities was observed. Simultaneously, signs of non-competitiveness such as high membership and annual fees, transaction costs and stamp duties were also observed.

scholarly journals Alternative Securities Markets as Financing Sources for SMEs – Selected Aspects of AIM and NC

2017 ◽  
Author(s):  
Joanna Małecka
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Stock Exchange ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Special Focus ◽  
Growing Stock ◽  
Warsaw Stock Exchange ◽  
Market Operation ◽  
The Uk

Small and medium-sized enterprises are the foundation for the development of each contemporary national economy. Their number affects macroeconomic indices of economies and directly translates into the labour market created by SMEs. This article aims to investigate the key conditionings behind the macroeconomic significance and legal factors of the financial market operation in Poland and the UK, with particular emphasis on the stock exchange as the fundamental element of the capital market. Both AIM and NewConnect are platforms dedicated to SMEs, which have been allowed easier access to this capital market segment by minimising mandatory legal conditions. This study analyses the number of listed companies and their capitalisation values in 1999–2015, covering: the rules of the financial market operation, with a special focus on the legal bases of the stock market operation in the economies investigated; legal conditions for the development of this economic segment; and a detailed analysis of the number of participants and capitalisation values achieved on the Warsaw and London Stock Exchanges, in particular AIM and NewConnect. This paper builds on source data from various annual reports and stock exchange publications drawn up and made available by stock exchanges and financial supervisors. The attempt to compare the indices and capacities of the WSE and the NC with the biggest European player is motivated by the fact that the Warsaw Stock Exchange is classified as the largest and most dynamically growing stock exchange in Central and Eastern Europe.

scholarly journals Tadawul and Dubai Financial Market - A Comparative Study

2020 ◽  
Vol 9 (2) ◽  
pp. 45
Author(s):  
Issam Tlemsani ◽  
Fai Albadeen ◽  
Ghada Althaaly ◽  
Maha Aljughaiman ◽  
Hala Bubshait
Keyword(s):  
Comparative Study ◽  
Financial Market ◽  
Growth Rates ◽  
Strong Influence ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Gdp Growth ◽  
Economic Market ◽  
Stock Valuation ◽  
Better Than

This research is intended to identify the fundamentals of stock valuation and utilize them in the macro analysis and micro valuation of two major stock exchanges ‘Tadawul’ and ‘Dubai Financial Market’. These stock exchanges are compared in terms of their strengths and weaknesses according to significant economic indicators, alongside essential stock market determinants, all the while highlighting relevant relationships among them. Upon assessment, GDP has a strong influence on the valuation of the market and KSA’s GDP growth in the last two years has been slightly higher than UAE’s growth, affecting projected GDP growth rates. Tadawul performed better than DFM in P/E ratio indicating a higher willingness to invest in the Saudi stock exchange as well as a higher return expectation. DFM’s stocks are highly undervalued. It can be concluded that both stock exchanges are strong and competitive respectfully, and their potential for growth depends on the economic market that they originate from.

scholarly journals Measuring Co-Movements and Linkages between Nigeria and the UAE Stock Exchanges: Is there Opportunity for Portfolio Building?

2020 ◽  
Vol 1 (2) ◽  
pp. 106-122
Author(s):  
Shafiu Abdullahi
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Market Integration ◽  
Stock Exchange ◽  
Portfolio Diversification ◽  
Empirical Literature ◽  
Stock Exchanges ◽  
Financial Contagion ◽  
Stock Market Integration ◽  
Short Run

Purpose: The main objective of this study is to examine the relationship between Nigerian Stock Exchange and Dubai stock exchange with the aim of finding out the direction of movements between their respective indices. Approach/Methodology/Design: The methodology adopted for the analysis is ARDL cointegration model and the Generalized Method of Moment (GMM). This is because of their known efficiency in detecting patterns between variables. Findings: The result of the short-run analysis using GMM shows that there is existence of short-run causality between the Dubai financial market (DFM) and the Nigerian stock exchange (NSE). Thus, for investors looking for short- run arbitrage opportunity between the markets, they shall look elsewhere. But, the result of bound testing has shown lack of cointegration between the two markets. This is a sign of existence of opportunities for portfolio diversification between Nigeria stock exchange and Dubai financial market, since the two markets are not cointegrated in the long-run. Practical Implications: The study helps bridge the empirical literature gap in stock market integration and portfolio diversification with reference to the Nigeria and UAE. It will, therefore, guide local and foreign investors with interest in Nigeria and UAE Stock Exchanges. It will also guide Nigerian and UAE policy makers to understand the market better, especially as it concerns financial contagion. Originality/value: This study provides further evidence on stock market integration in emerging markets. New researches shall adopt different methodology such as use of volatility tracking models to measure volatility linkage between the markets.

scholarly journals Estimating risk exposure of Ukrainian enterprises using methods of corporate finance

2019 ◽  
Vol 2019 (3) ◽  
pp. 40-59
Author(s):  
Pavlo Kerimov
Keyword(s):  
Stock Exchange ◽  
Risk Exposure ◽  
Stock Exchanges ◽  
Exposure Estimation ◽  
Beta Coefficient ◽  
Market Status ◽  
State Of Affairs ◽  
Market Infrastructure ◽  
To Receive

Weak market infrastructure makes the data provided by Ukrainian stock exchanges obscure and unreliable, which ultimately led to a loss of Ukraine's "frontier market" status since 2015. This, in turn, makes risk exposure estimation of Ukrainian enterprises, especially using CAPM and its modifications, a rather complex and creative process, which is highly dependent on the qualification of the expert making such assessment. The aims of this research are to itemize the main issues with calculating beta-coefficient using Ukrainian data and to offer possible ways of mitigating or avoiding them. Using a set of Ukrainian engineering enterprises the author demonstrates the main limitations of the current statistics provided by Ukrainian stock exchange (namely, fragmentary data with dubious representativeness), gives a condensed characterization of reasons for such state of affairs, and proposes to use methods of calculation based on open source corporate data instead. The best results were achieved by using a method based on adjusting existing average industry-based beta coefficient to enterprise's individual financial leverage. The author hypothesizes that in order to receive results more representative for Ukraine's situation one should use industry average beta, calculated based on Ukrainian data instead of worldwide averages, available in the open sources. The methodical approaches to calculating beta coefficient, examined in this paper, and their modifications in order to fit Ukrainian conditions better, could potentially be used in order to access risk exposure of enterprises, functioning on other frontier or developing markets. Creating an open database of industry-based average betas, calculated on basis of Ukrainian data, could be a valuable alternative to currently available sources for evaluating assets on non-developed markets.

18. Public offers of shares

Company Law ◽  
2019 ◽  
pp. 498-521
Author(s):  
Lee Roach
Keyword(s):  
Financial Services ◽  
Stock Exchange ◽  
Listed Companies ◽  
Securities Regulation ◽  
Stock Exchanges ◽  
London Stock Exchange ◽  
The Public ◽  
Public Offer ◽  
Rights Issues ◽  
Alternative Investment

This chapter studies the sources of securities regulation, the rules relating to offering shares to the public, the various UK stock exchanges, and the process by which securities are listed. There are several types of public offer, including offers for subscription, offers for sale, placings, and rights issues. The London Stock Exchange is the principal UK stock exchange, and its two principal markets are the Main Market and the Alternative Investment Market. The principal domestic rules relating to public offers of shares are found in the Financial Services and Markets Act 2000, the Listing Rules, the Prospectus Rules, and the Disclosure and Transparency Rules. Companies that offer securities to the public or seek to admit securities to a UK regulated market must first publish a prospectus. Meanwhile, listed companies must comply with a range of continuing obligations for as long as their securities remain listed.

scholarly journals One Of The Prime Beneficiaries Of The Sarbanes Oxley Act Of 2002: The London Stock Exchange!

2011 ◽  
Vol 7 (10) ◽  
Author(s):  
RamMohan R. Yallapragada ◽  
Alfred Toma ◽  
C. William Roe
Keyword(s):  
New York ◽  
Stock Exchange ◽  
The United States ◽  
Stock Exchanges ◽  
Public Confidence ◽  
American Business ◽  
London Stock Exchange ◽  
Sarbanes Oxley ◽  
Accounting Scandals ◽  
Implementation Costs

In the late 1990s, financial markets in the United States (U S ) were rocked by accounting scandals in companies such as Enron and WorldCom. Public confidence in American business was at a low ebb. As a knee-jerk reaction to the scandals, the U S Congress hastily passed the Sarbanes-Oxley Act of 2002 (SOX) hoping to restore the lost image of the U S business firms. SOX rendered corporate governance and protecting corporate assets a matter of Federal mandates. Penalties for violation of the provisions of SOX include a maximum of 25 years of prison and/or a fine of twenty five million dollars. For small and mid-size firms, the implementation costs became prohibitive. The exorbitant implementation costs of Section 404 of SOX and the draconian criminal sanctions for senior management are driving companies to flee from The New York Stock Exchange to more favorable exchanges overseas. The London Stock Exchange appears to be the most benefited one from the passage of SOX. This paper presents the salient provisions of SOX, the havoc caused to the business firms by its implementation costs, and the present trend of flight of capital from American stock exchanges to overseas stock exchanges such as the London Stock Exchange.

Part III Trading, 11 Governance and Organization of Trading Venues: The Role of Financial Market Infrastructure Groups

2017 ◽  
Author(s):  
Ferrarini Guido ◽  
Saguato Paolo
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Financial Conglomerates ◽  
Current Regime ◽  
Regulated Markets ◽  
Financial Market Stability ◽  
Potential Risks ◽  
Market Infrastructure ◽  
The Eu

This chapter shows that MiFID II brings modest changes to trading venues in the EU: newly introduced Organized Trading Facilities (OTFs) will be the reference venues for a significant portion of derivatives trading; and regulated markets (RMs) and Multilateral Trading Facilities (MTFs) regimes have been aligned, with specific provisions to strengthen the governance of venues and operators. However, trading venues which have developed into Financial Markets Infrastructures (FMI) groups providing trading and post-trading services test the capacity of the current regime—and MiFID II itself—to oversee their activities and guarantee competition and stability. MiFID II does not explicitly take FMI groups into account; only three sets of rules address some of their potential risks. The authors conclude that this regulatory gap might threaten financial market stability, and regulators should consider a regulatory intervention, such as the experience of the regulatory and supervisory colleges of CCPs under EMIR and the regulatory framework of the financial conglomerates directive.

scholarly journals Refining going-public methods

2021 ◽  
Vol 27 (4) ◽  
pp. 934-960
Author(s):  
Artur A. NAZAR'YANTS
Keyword(s):  
Financial Market ◽  
Stock Exchange ◽  
Equity Capital ◽  
Stock Exchanges ◽  
Public Companies ◽  
Russian Market ◽  
Scientific Methods ◽  
Innovative Methods ◽  
Analysis And Synthesis ◽  
General Scientific

Subject. The article examines the foreign experience of global trading platforms related to alternative ways of listing company shares on stock exchanges. Objectives. I study the feasibility of adapting other methods of placing shares on Russian stock exchanges in order to develop the national financial market and increase the number of traded shares. Methods. The study is based on general scientific methods of analysis and synthesis, comparative and comparative analysis, graphical method of analysis. Results. As a result of the analysis of international experience and innovative methods of listing, it was determined that there are legal obstacles that currently limit the possibility of using new methods of listing shares in the Russian market. At the same time, there is a demand from small and medium-sized businesses, as well as large Russian non-public companies, for simpler and less expensive ways to enter the equity capital market. Conclusions. The emergence of additional ways for companies to enter the stock exchange opens up more diversified and less expensive ways for issuers to place their shares, as well as expands the investor base and the overall attractiveness of the Russian financial market.

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