The efficiency, safety, and soundness of financial markets depend
on the operation of core infrastructure--exchanges, central
counter-parties, and central securities depositories. How these
institutions are governed critically affects their performance.
Yet, despite their importance, there is little certainty, still
less a global consensus, about their governance. Running the
World's Markets examines how markets are, and should be, run.
Utilizing a wide variety of arguments and examples from
throughout the world, the similarities and differences between
exchanges, central counter-parties, and central securities
depositories are identified and evaluated. Drawing on knowledge and
experience from various disciplines, including business, economics,
finance, law, politics, and regulation, a range of methodologies
are employed to tackle different goals. Conceptual analysis is used
to examine theoretical issues, survey evidence to describe key
aspects of how market infrastructure institutions are governed and
regulated globally, and case studies to detail the particular
situations and decisions at specific institutions. The combination
of these approaches provides a unique and rich foundation for
evaluating the complex issues raised.
Running the World's Markets analyzes efficient forms of
governance, how regulatory powers should be allocated, and whether
regulatory intervention in governance is desirable. Guidelines are
presented for identifying the optimal governance model for any
market infrastructure institution within the context of its
specific environment.
New technology is revolutionizing the nature and threatening the
existence of traditional stock and futures exchanges. This book
analyses how they are responding to developments in automation,
what strategies they should adopt to survive and prosper in a
competitive environment, and whether their actions both are, and
should be, a matter of public concern. The development, operation
and management of stock and futures exchanges is examined. Relevant
law and regulation is interpreted and evaluated. Finally, some
policy recommendations are presented. The book applies knowledge,
experience and analytical techniques from the fields of business,
economics, law and regulation.