Mark Thatcher
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199245680
- eISBN:
- 9780191715273
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199245680.001.0001
- Subject:
- Political Science, Political Economy
The book examines when, how, and why internationalisation affects decisions about national economic institutions. It confronts questions at the heart of debates in political economy and comparative ...
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The book examines when, how, and why internationalisation affects decisions about national economic institutions. It confronts questions at the heart of debates in political economy and comparative politics. What does internationalisation of markets mean? Who are its carriers in domestic arenas? Through which mechanisms does it operate? What are its effects on institutional reform? To respond to these questions, the book develops a ‘policy analysis’ approach to market internationalisation and domestic institutions. It draws on two literatures, the second image reversed approach and historical institutionalist/‘varieties of capitalism’ studies, but seeks to overcome their limitation. In particular, it offers a definition of market internationalisation that includes policy forms, namely regulatory change in powerful overseas nations and by the EU, and gives due attention to policy processes and mechanisms. The book shows that contrary to expectations, transnational technological and economic factors made little impact, whereas regulatory reforms by the US, Britain, and the EU, undermined long-standing national institutions. Policy forms of internationalisation were more influential because they become part of domestic decision-making through a broader range of mechanisms than economic efficiency or distributional conflicts. Indeed, reform was led by domestic actors, not just socio-economic interests but also political and state actors, who altered their strategies and used policy forms of internationalisation to build new coalitions and legitimate change. The book's arguments are sustained by an analysis of five strategic sectors (securities trading, telecommunications, electricity, airlines, and postal services) in Britain, France, Germany, and Italy, over the period 1965-2005. It combines cross-national, historical, and cross-sectoral comparisons to show the carriers mechanisms and outcomes of internationalisation.Less
The book examines when, how, and why internationalisation affects decisions about national economic institutions. It confronts questions at the heart of debates in political economy and comparative politics. What does internationalisation of markets mean? Who are its carriers in domestic arenas? Through which mechanisms does it operate? What are its effects on institutional reform? To respond to these questions, the book develops a ‘policy analysis’ approach to market internationalisation and domestic institutions. It draws on two literatures, the second image reversed approach and historical institutionalist/‘varieties of capitalism’ studies, but seeks to overcome their limitation. In particular, it offers a definition of market internationalisation that includes policy forms, namely regulatory change in powerful overseas nations and by the EU, and gives due attention to policy processes and mechanisms. The book shows that contrary to expectations, transnational technological and economic factors made little impact, whereas regulatory reforms by the US, Britain, and the EU, undermined long-standing national institutions. Policy forms of internationalisation were more influential because they become part of domestic decision-making through a broader range of mechanisms than economic efficiency or distributional conflicts. Indeed, reform was led by domestic actors, not just socio-economic interests but also political and state actors, who altered their strategies and used policy forms of internationalisation to build new coalitions and legitimate change. The book's arguments are sustained by an analysis of five strategic sectors (securities trading, telecommunications, electricity, airlines, and postal services) in Britain, France, Germany, and Italy, over the period 1965-2005. It combines cross-national, historical, and cross-sectoral comparisons to show the carriers mechanisms and outcomes of internationalisation.
Ranald C. Michie
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199280612
- eISBN:
- 9780191712784
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199280612.003.0001
- Subject:
- Economics and Finance, Economic History
This introductory chapter begins with a discussion of how the study of securities markets has been neglected. It argues that a full understanding of the past can inform present and future decisions ...
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This introductory chapter begins with a discussion of how the study of securities markets has been neglected. It argues that a full understanding of the past can inform present and future decisions through the ability to identify those features that were most important and their consequences. To achieve this end, it is vital to place the development of securities markets in their appropriate historical setting and use comparisons as analytical tools in order to produce conclusions of value. The tension between securities markets and governments, securities markets and stock exchanges, and between national securities markets and the global marketplace is described.Less
This introductory chapter begins with a discussion of how the study of securities markets has been neglected. It argues that a full understanding of the past can inform present and future decisions through the ability to identify those features that were most important and their consequences. To achieve this end, it is vital to place the development of securities markets in their appropriate historical setting and use comparisons as analytical tools in order to produce conclusions of value. The tension between securities markets and governments, securities markets and stock exchanges, and between national securities markets and the global marketplace is described.
Hendrik S. Houthakker and Peter J. Williamson
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780195044072
- eISBN:
- 9780199832958
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019504407X.003.0005
- Subject:
- Economics and Finance, Financial Economics
The discussion in this chapter begins with an analysis of central trading places, which looks at the economics of securities trading and the rationale for brokers and central trading places (with ...
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The discussion in this chapter begins with an analysis of central trading places, which looks at the economics of securities trading and the rationale for brokers and central trading places (with reference to US stock exchanges), the types of orders buyers or sellers may place in the market and the way these are executed, and the system of ‘specialists’ commonly found in stock exchanges (which is designed to provide a smooth and continuous market for individual stocks). Next, it briefly examines financial markets without central trading places. This is followed by a look at the mechanics of securities trading in the stock exchanges in London (UK) and Tokyo (Japan). The last section of the chapter discusses the operational efficiency of the stock market and the efficient market hypothesis (EFM), looking at the implications of central exchanges in which information flows rapidly between participants for the efficiency of the stock market as a whole and, in particular, at the ‘random walk’ behavior of share prices.Less
The discussion in this chapter begins with an analysis of central trading places, which looks at the economics of securities trading and the rationale for brokers and central trading places (with reference to US stock exchanges), the types of orders buyers or sellers may place in the market and the way these are executed, and the system of ‘specialists’ commonly found in stock exchanges (which is designed to provide a smooth and continuous market for individual stocks). Next, it briefly examines financial markets without central trading places. This is followed by a look at the mechanics of securities trading in the stock exchanges in London (UK) and Tokyo (Japan). The last section of the chapter discusses the operational efficiency of the stock market and the efficient market hypothesis (EFM), looking at the implications of central exchanges in which information flows rapidly between participants for the efficiency of the stock market as a whole and, in particular, at the ‘random walk’ behavior of share prices.
George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.003.0001
- Subject:
- Economics and Finance, Financial Economics
This chapter provides an introduction to recent and likely future trends in financial reporting in the United States, Europe, Japan, and in the international arena (through reporting standards set by ...
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This chapter provides an introduction to recent and likely future trends in financial reporting in the United States, Europe, Japan, and in the international arena (through reporting standards set by the International Accounting Standards Board). It sets the stage by providing a brief overview of changes in equities markets around the world, which have led to global participation. It is this trend toward globalized investing that has given rise to calls for a single set of global accounting standards. A central thesis of this book is that these calls are misplaced, that global accounting standards are not necessary and are not likely to remain unified even if initially adopted.Less
This chapter provides an introduction to recent and likely future trends in financial reporting in the United States, Europe, Japan, and in the international arena (through reporting standards set by the International Accounting Standards Board). It sets the stage by providing a brief overview of changes in equities markets around the world, which have led to global participation. It is this trend toward globalized investing that has given rise to calls for a single set of global accounting standards. A central thesis of this book is that these calls are misplaced, that global accounting standards are not necessary and are not likely to remain unified even if initially adopted.
Thierry Foucault, Marco Pagano, and Ailsa Röell
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780199936243
- eISBN:
- 9780199333059
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199936243.003.0008
- Subject:
- Economics and Finance, Financial Economics
When a security trades in multiple venues, orders submitted to the different venues do not necessarily contribute jointly to price formation. In this case, the market for the security is said to be ...
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When a security trades in multiple venues, orders submitted to the different venues do not necessarily contribute jointly to price formation. In this case, the market for the security is said to be “fragmented.” Market fragmentation raises several concerns that have been at the forefront of recent regulatory debates, in the United States and in Europe. Market fragmentation may lead to excessive “price dispersion,” meaning that the same security may trade at different prices at the same instant. Another concern is that market fragmentation could raise trading costs for investors compared to centralized trading. This chapter discusses the costs of fragmentation, liquidity externalities, and the benefits of fragmentation. It also describes two recent changes in the United States (RegNMS) and Europe (MiFID) designed precisely to organize competition among trading platforms. The final sections provide suggestions for further reading and exercises.Less
When a security trades in multiple venues, orders submitted to the different venues do not necessarily contribute jointly to price formation. In this case, the market for the security is said to be “fragmented.” Market fragmentation raises several concerns that have been at the forefront of recent regulatory debates, in the United States and in Europe. Market fragmentation may lead to excessive “price dispersion,” meaning that the same security may trade at different prices at the same instant. Another concern is that market fragmentation could raise trading costs for investors compared to centralized trading. This chapter discusses the costs of fragmentation, liquidity externalities, and the benefits of fragmentation. It also describes two recent changes in the United States (RegNMS) and Europe (MiFID) designed precisely to organize competition among trading platforms. The final sections provide suggestions for further reading and exercises.
Thierry Foucault, Marco Pagano, and Ailsa Röell
- Published in print:
- 2013
- Published Online:
- September 2013
- ISBN:
- 9780199936243
- eISBN:
- 9780199333059
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199936243.003.0009
- Subject:
- Economics and Finance, Financial Economics
This chapter discusses the issue of transparency in securities markets. It covers pre-trade transparency, post-trade transparency, and revealing trading motives. It demonstrates that transparency ...
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This chapter discusses the issue of transparency in securities markets. It covers pre-trade transparency, post-trade transparency, and revealing trading motives. It demonstrates that transparency about quotes, orders, and traders' identities generally enhances market liquidity, at least as far as uninformed traders are concerned. The chapter then addresses the question of why markets are so opaque. The final sections provide suggestions for further reading and exercises.Less
This chapter discusses the issue of transparency in securities markets. It covers pre-trade transparency, post-trade transparency, and revealing trading motives. It demonstrates that transparency about quotes, orders, and traders' identities generally enhances market liquidity, at least as far as uninformed traders are concerned. The chapter then addresses the question of why markets are so opaque. The final sections provide suggestions for further reading and exercises.
José Luis Peydró, Andrea Polo, and Enrico Sette
- Published in print:
- 2018
- Published Online:
- January 2018
- ISBN:
- 9780198815815
- eISBN:
- 9780191853418
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198815815.003.0022
- Subject:
- Economics and Finance, Financial Economics
Since the beginning of the financial crisis, academics and regulators on both sides of the Atlantic have started to debate the implications of securities trading by banks. New regulation limits ...
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Since the beginning of the financial crisis, academics and regulators on both sides of the Atlantic have started to debate the implications of securities trading by banks. New regulation limits security trading, fearing that this could crowd out lending to the real economy or could facilitate risk-shifting by financial institutions. On the other hand, banks may use security trading for hedging purposes or, particularly during a crisis, to access public liquidity. Only very recently have researchers begun to have access to micro data at the security level on banks’ trading activities, and they are starting to bring robust evidence on these issues. This chapter reviews the potential costs and benefits of combining traditional intermediation activity with security trading and discusses the recent empirical evidence.Less
Since the beginning of the financial crisis, academics and regulators on both sides of the Atlantic have started to debate the implications of securities trading by banks. New regulation limits security trading, fearing that this could crowd out lending to the real economy or could facilitate risk-shifting by financial institutions. On the other hand, banks may use security trading for hedging purposes or, particularly during a crisis, to access public liquidity. Only very recently have researchers begun to have access to micro data at the security level on banks’ trading activities, and they are starting to bring robust evidence on these issues. This chapter reviews the potential costs and benefits of combining traditional intermediation activity with security trading and discusses the recent empirical evidence.
Steffen Kern and Giuseppe Loiacono
- Published in print:
- 2018
- Published Online:
- January 2019
- ISBN:
- 9780198829461
- eISBN:
- 9780191867972
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198829461.003.0012
- Subject:
- Economics and Finance, Financial Economics
This chapter reviews the fundamental workings of the EU regulatory framework and its implications for high frequency trading (HFT) and the latest findings on the market realities in the EU. Over the ...
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This chapter reviews the fundamental workings of the EU regulatory framework and its implications for high frequency trading (HFT) and the latest findings on the market realities in the EU. Over the last decade, securities trading landscapes have undergone significant change, with the emergence of HFT being one of the most important developments in this context. At the same time, the EU has made landmark legislative advances with the aim of increasing investor protection, market order, and financial stability, and of containing risks in those areas. As the new MiFID2 legal framework takes effect, a wealth of new data and evidence will become available in coming years that will improve understanding of HFT patterns, the effectiveness of circuit breakers, and their optimal calibration.Less
This chapter reviews the fundamental workings of the EU regulatory framework and its implications for high frequency trading (HFT) and the latest findings on the market realities in the EU. Over the last decade, securities trading landscapes have undergone significant change, with the emergence of HFT being one of the most important developments in this context. At the same time, the EU has made landmark legislative advances with the aim of increasing investor protection, market order, and financial stability, and of containing risks in those areas. As the new MiFID2 legal framework takes effect, a wealth of new data and evidence will become available in coming years that will improve understanding of HFT patterns, the effectiveness of circuit breakers, and their optimal calibration.
Caroline Farrelly and François-Serge Lhabitant
- Published in print:
- 2017
- Published Online:
- August 2017
- ISBN:
- 9780190607371
- eISBN:
- 9780190607401
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190607371.003.0012
- Subject:
- Economics and Finance, Financial Economics
This chapter explores some of the strategies used by event-driven hedge funds, namely merger arbitrage, trading distressed securities, special situations, and activism. This broad category within the ...
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This chapter explores some of the strategies used by event-driven hedge funds, namely merger arbitrage, trading distressed securities, special situations, and activism. This broad category within the hedge fund space attracts about a quarter of the capital deployed to this part of the alternatives world. Investors are drawn to the idea of uncorrelated returns that can act as a source of diversification for their portfolios as well as the ability to follow the news flow related to their investments. In essence, such trades should have identifiable catalysts and time frames. The chapter offers illustrative examples of historical trades, providing some context of the types of positions funds may take and time frames involved. Various skill sets should be sought in an event-driven manager. Managers dealing in distressed securities are likely to benefit from a legal expertise, whereas activists need to be able to influence management and campaign publically.Less
This chapter explores some of the strategies used by event-driven hedge funds, namely merger arbitrage, trading distressed securities, special situations, and activism. This broad category within the hedge fund space attracts about a quarter of the capital deployed to this part of the alternatives world. Investors are drawn to the idea of uncorrelated returns that can act as a source of diversification for their portfolios as well as the ability to follow the news flow related to their investments. In essence, such trades should have identifiable catalysts and time frames. The chapter offers illustrative examples of historical trades, providing some context of the types of positions funds may take and time frames involved. Various skill sets should be sought in an event-driven manager. Managers dealing in distressed securities are likely to benefit from a legal expertise, whereas activists need to be able to influence management and campaign publically.
Craig Calhoun and Georgi Derluguian
- Published in print:
- 2011
- Published Online:
- March 2016
- ISBN:
- 9780814772775
- eISBN:
- 9780814723555
- Item type:
- chapter
- Publisher:
- NYU Press
- DOI:
- 10.18574/nyu/9780814772775.003.0002
- Subject:
- Sociology, Economic Sociology
This introductory chapter argues that the 2008 financial crisis has been shaped in basic ways by capitalism, by financialization since the 1970s, by politically organized limits to regulation, and by ...
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This introductory chapter argues that the 2008 financial crisis has been shaped in basic ways by capitalism, by financialization since the 1970s, by politically organized limits to regulation, and by organizational as well as individual irresponsibility. In other words, it is a crisis resulting from business as usual, not simply a disruption of business as usual. The blame is often laid on the greedy rogues at Wall Street, though this simplistic notion obfuscates the bigger picture, including much-needed lessons on the importance of financial regulation, the pitfalls of trading in securities neither buyers nor sellers fully understand, and the disastrous consequences of financialization—let alone about capitalism itself.Less
This introductory chapter argues that the 2008 financial crisis has been shaped in basic ways by capitalism, by financialization since the 1970s, by politically organized limits to regulation, and by organizational as well as individual irresponsibility. In other words, it is a crisis resulting from business as usual, not simply a disruption of business as usual. The blame is often laid on the greedy rogues at Wall Street, though this simplistic notion obfuscates the bigger picture, including much-needed lessons on the importance of financial regulation, the pitfalls of trading in securities neither buyers nor sellers fully understand, and the disastrous consequences of financialization—let alone about capitalism itself.