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| Author | : Maria Clara Natividade Martins Pereira |
| Publisher | : |
| Total Pages | : |
| Release | : 2020 |
| Genre | : |
| ISBN | : |
| Author | : Walter Mattli |
| Publisher | : Oxford University Press, USA |
| Total Pages | : 385 |
| Release | : 2019-01-03 |
| Genre | : Business & Economics |
| ISBN | : 0198829469 |
Global capital markets have undergone fundamental transformations in recent years and, as a result, have become extraordinarily complex and opaque. Trading space is no longer measured in minutes or seconds but in time units beyond human perception: milliseconds, microseconds, and even nanoseconds. Technological advances have thus scaled up imperceptible and previously irrelevant time differences into operationally manageable and enormously profitable business opportunities for those with the proper high-tech trading tools. These tools include the fastest private communication and trading lines, the most powerful computers and sophisticated algorithms capable of speedily analysing incoming news and trading data and determining optimal trading strategies in microseconds, as well as the possession of gigantic collections of historic and real-time market data. Fragmented capital markets are also becoming a rapidly growing reality in Europe and Asia, and are an established feature of U.S. trading. This raises urgent market governance issues that have largely been overlooked. Global Algorithmic Capital Markets seeks to understand how recent market transformations are affecting core public policy objectives such as investor protection and reduction of systemic risk, as well as fairness, efficiency, and transparency. The operation and health of capital markets affect all of us and have profound implications for equality and justice in society. This unique set of chapters by leading scholars, industry insiders, and regulators discusses ways to strengthen market governance for the benefit of society at whole.
| Author | : Martin Ebers |
| Publisher | : Cambridge University Press |
| Total Pages | : 321 |
| Release | : 2020-07-23 |
| Genre | : Computers |
| ISBN | : 1108424821 |
Exploring issues from big-data to robotics, this volume is the first to comprehensively examine the regulatory implications of AI technology.
| Author | : Yesha Yadav |
| Publisher | : |
| Total Pages | : 65 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
This Article argues that the rise of algorithmic trading undermines efficient capital allocation in securities markets. It is a bedrock assumption in theory that securities prices reveal how effectively public companies utilize capital. This conventional wisdom rests on the straightforward premise that prices reflect available information about a security and that investors look to prices to decide where to invest and whether their capital is being productively used. Unsurprisingly, regulation relies pervasively on prices as a proxy for the allocative efficiency of investor capital.Algorithmic trading weakens the ability of prices to function as a window into allocative efficiency. This Article develops two lines of argument. First, algorithmic markets evidence a systemic degree of model risk - the risk that stylized programming and financial modelling fails to capture the messy details of real-world trading. By design, algorithms rely on pre-set programming and modeling to function. Traders must predict how markets might behave and program their algorithms accordingly in advance of trading. This anticipatory dynamic creates steep costs. Building algorithms capable of predicting future markets presents a near-impossible proposition, making gaps and errors inevitable. Uncertainties also create incentives for traders to focus efforts on markets where prediction is likely to be most successful, i.e. short-term markets that have limited relevance for capital allocation. Secondly, informed traders - long regarded as critical to filling gaps in information and supplying markets with insight - have fewer incentives to participate in algorithmic markets and to correct these and other informational deficits. Competing with high-speed, algorithmic counterparts, informed traders can see lower returns from their engagement. When are less rich as a result.This argument has significant implications for regulation that views prices as providing an essential window into allocative efficiency. Broad swathes of regulation across corporate governance and securities regulation rely on prices as a mechanism to monitor and discipline public companies. As algorithmic trading creates costs for capital allocation, this reliance must also be called into question. In concluding, this Article outlines pathways for reform to better enable securities markets to fulfill their fundamental purpose: efficiently allocating capital to the real economy.
| Author | : Onnig H. Dombalagian |
| Publisher | : MIT Press |
| Total Pages | : 381 |
| Release | : 2015-04-10 |
| Genre | : Law |
| ISBN | : 026232430X |
An examination of regulation and use of information in capital markets, offering comparisons across different jurisdictions, regulated entities, and financial instruments. Financial information is a both a public resource and a commodity that market participants produce and distribute in connection with other financial products and services. Legislators, regulators, and other policy makers must therefore balance the goal of making information transparent, accessible, and useful for the collective benefit of society against the need to maintain appropriate incentives for information originators and intermediaries. In Chasing the Tape, Onnig Dombalagian examines the policy objectives and regulatory tools that shape the information production chain in capital markets in the United States, the European Union, and other jurisdictions. His analysis offers a unique cross section of capital market infrastructure, spanning different countries, regulated entities, and financial instruments. Dombalagian uses four key categories of information—issuer information, market information, information used in credit analysis, and benchmarks—to survey the market forces and regulatory regimes that govern the flow of information in capital markets. He considers the similarities and differences in regulatory aims and strategies across categories, and discusses alternative approaches proposed or adopted by scholars and policy makers. Dombalagian argues that the long-term regulatory challenges raised by economic globalization and advanced information technology will require policy makers to decouple information policy in capital markets from increasingly arbitrary historical classifications and jurisdictional boundaries.
| Author | : Gregory Scopino |
| Publisher | : Cambridge University Press |
| Total Pages | : 485 |
| Release | : 2020-10-15 |
| Genre | : Business & Economics |
| ISBN | : 1107164796 |
An exploration of how financial market laws and regulations can - and should - govern the use of artificial intelligence.
| Author | : Merritt B. Fox |
| Publisher | : |
| Total Pages | : 395 |
| Release | : 2019-01-08 |
| Genre | : Securities |
| ISBN | : 9780231181969 |
The institutions and regulation of trading markets -- The social function of stock markets -- The economics of trading markets -- High frequency trading -- The economics of informed trading -- The regulation of informed trading -- Manipulation -- Short selling -- Broker-dealers -- Dark pools -- Maker-taker fees -- Payment for order flow -- Conclusion
| Author | : Claudius Seidel |
| Publisher | : GRIN Verlag |
| Total Pages | : 18 |
| Release | : 2011-11-15 |
| Genre | : Business & Economics |
| ISBN | : 3656055459 |
Essay from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,0, Technical University of Berlin, language: English, abstract: The paper deals with attempts to regulate innovations in the financial sector. This is demonstrated by the issue of High Frequency Trading/Algorithmic Trading. Possible consequences for stock markets and economic systems are taken into account and discussed.
| Author | : Walter Mattli |
| Publisher | : Princeton University Press |
| Total Pages | : 264 |
| Release | : 2021-06-08 |
| Genre | : Business & Economics |
| ISBN | : 069121686X |
"Capital markets have undergone a dramatic transformation in the past two decades. Algorithmic high-speed supercomputing has replaced traditional floor trading and human market makers, while centralized exchanges that once ensured fairness and transparency have fragmented into a dizzying array of competing exchanges and trading platforms. Darkness by Design exposes the unseen perils of market fragmentation and 'dark' markets, some of which are deliberately designed to enable the transfer of wealth from the weak to the powerful. Walter Mattli traces the fall of the traditional exchange model of the NYSE, the world's leading stock market in the twentieth century, showing how it has come to be supplanted by fragmented markets whose governance is frequently set up to allow unscrupulous operators to exploit conflicts of interest at the expense of an unsuspecting public. Market makers have few obligations, market surveillance is neglected or impossible, enforcement is ineffective, and new technologies are not necessarily used to improve oversight but to offer lucrative preferential market access to select clients in ways that are often hidden. Mattli argues that power politics is central in today's fragmented markets. He sheds critical light on how the redistribution of power and influence has created new winners and losers in capital markets and lays the groundwork for sensible reforms to combat shady trading schemes and reclaim these markets for the long-term benefit of everyone. Essential reading for anyone with money in the stock market, Darkness by Design challenges the conventional view of markets and reveals the troubling implications of unchecked market power for the health of the global economy and society as a whole"--
| Author | : Sriram Kannan |
| Publisher | : |
| Total Pages | : 14 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
Algorithmic trading is generally defined as using computer-generated algorithms to create and execute orders on marketplaces. Recently, such algo-trading strategies are increasingly being associated with the negative impact on capital markets - both from a technological as well as a business perspective. However, there are positive effects of algorithmic trading too - such as increased liquidity and the elimination of market inefficiencies - that far outweigh the potential negative effects. Regardless of this, algo-trading has seen increasing popularity and acceptance on most of the major global markets, demanding well thought-out strategies that actually help traders and investors make more than a reasonable return on their investments. Objective of this paper is to:a) Categorize the types of algorithmic trading and describe their implications for capital markets.b) Describe how to accommodate algorithmic trading in markets, while minimizing potentialadverse effects. Discuss technology options and architectures to realize the same.c) Describe the use of special-purpose orders in the context of algorithmic trading.
