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HM Treasury 's December 2021 Report to Parliament on the UK Securitisation Regulation was inaccurate and misleading in its summary of key evidence. Worse, HM Treasury failed to address what effect the large scale regulatory diversion of credit investment may have on the pricing of credit, what market distortions may arise and what can happen if credit is mis-priced and the credit markets are distorted. HM Treasury confirmed in their 9 December 2022 Policy Note that they are holding their position. [ABSTRACT FROM AUTHOR]

High-frequency traders account for a significant part of overall price formation and liquidity provision in modern securities markets. In order to react within microseconds, high-frequency traders depend on specialized low latency infrastructure and fast connections to exchanges, which require significant IT investments. The paper investigates a technical failure of this infrastructure at a major exchange that prevents high-frequency traders from trading at low latency. This event provides a unique opportunity to analyze the impact of high-frequency trading on securities markets. The analysis clearly shows that although the impact on trading volume and the number of trades is marginal, the effects on liquidity and to a lesser extent on price volatility are substantial when high-frequency trading is interrupted. Thus, investments in high-frequency trading technology provide positive economic spillovers to the overall market since they reduce transaction costs not only for those who invest in this technology but for all market participants by enhancing the quality of securities markets. [ABSTRACT FROM AUTHOR]

This article analyses the recent developments in the rules on securitisation operations. It discusses the general rules for all securitisation operations and the rules for STS securitisations, both introduced by the Securitisation Regulation (Regulation 2017/2402) and the Securitisation Prudential Regulation (Regulation 2017/2401). The article takes a critical look at these rules and at the outcomes of the recent EU consultation process. [ABSTRACT FROM AUTHOR]

The article is devoted to financial law issues on securities and derivatives market regulations. The article deals with the financial law nature of the relations that are emerging in the securities and derivatives markets through a review of methods and techniques of securities and derivatives market regulation. The author considers the public interest in the regulation of the securities and derivatives markets, as well as differences between different parts of securities and derivatives markets. The article contains the review of regulatory, compensatory and redistributive functions of the securities and derivatives markets. The author states that control of the securities and derivatives market has to be considered as independent type of state financial control in the Russian Federation. In addition, the securities and derivatives law have to be considered as a branch of financial law. The legal relations arising in course of issuance and circulation of state securities and entering into derivatives deals are separately reviewed and analyzed. It is proved that the basis for recognition of the securities and derivatives market as the financial law categories is similar to reasons proving the existence of public banking law, namely, stock market and derivatives as an integral parts of any financial market system, the presence of public interest in the regulation of relations in the securities and derivatives markets, the existence of a mandatory subject of legal relations, having a public authority (the Bank of Russia), the existence of subordination between the Bank of Russia and professional participants of the securities market where the Bank of Russia acts as a regulator and supervisory authority and wide scope of public law methods used for securities and derivatives market regulations.

Rules that restrict information required in negotiated private transactions have spurred a vast increase in the scope of anonymous financial markets, particularly in the United States. The subtle costs of the information‐restricting rules raise questions about the social value of "completing" anonymous markets that would not naturally survive and did not historically exist. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to obtain new empirical evidence about the connections between equity trading activity and five possible liquidity determinants: market capitalisation, dividend yield, earnings yield, company growth and the distinction between recently listed firms as opposed to more established ones. Design/methodology/approach – The authors use a sample of 172 stocks from four European markets and estimate models using the entire sample data and different sub-samples to check the relative importance of the above determinants. The authors also conduct a factor analysis to re-classify the variables into a more succinct framework. Findings – The evidence suggests that market capitalisation is the most important trading activity determinant, and the number of years listed ranks thereafter. Research limitations/implications – The positive relation between trading activity and market capitalisation is in line with prior literature, while the findings relating to the other determinants offer further empirical evidence which is a worthy addition in view of the contradictory results in prior research. Practical implications – This study is of relevance to practitioners who would like to understand the cross-sectional variation in stock liquidity at a more detailed level. Originality/value – The originality of the paper rests on two important grounds: the authors focus on trading turnover rather than on other liquidity proxies, since the former is accepted as an important determinant of the liquidity-generation process, and the authors adopt a rigorous approach towards checking the robustness of the results by considering various sub-sample configurations.

Copyright of Revista de Derecho Privado (0123-4366) is the property of Universidad Externado de Colombia, Departmento de Derecho Civil and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Much is known and written about Hong Kong as an international financial centre. In comparison, less is published about the regulators that sustain the territory's economy and reputation. This article delves into the issue of the Securities and Futures Commission as a corporate regulator and making a case for reform. [ABSTRACT FROM AUTHOR]

In a securities market, the initiator of a large transaction can expect the realized price of his or her trade to be inferior to the current market price immediately prior to his appearance in the market. This "transaction implementation cost" phenomenon is a major concern of institutional money managers, both in portfolio selection and in trade implementation strategy. A considerable amount of current research in finance theory deals with modeling and prediction of these costs for equities trading, and commercial products and services recently have become available for probabilistically estimating real-time transaction implementation costs versus transaction size on a stock-specific basis. Earlier papers described the concept of satisfaction- or preference-based trading, with optimization of trade matching on the basis of mutual preference. A market structure based on this design began trading listed equities on the Pacific Exchange on January 29, 1999 under the trade name OptiMark Registered Trademark. The Nasdaq market plans to begin trading using the OptiMark system later in 1999, followed by the Osaka Securities Exchange and the Toronto Stock Exchange in 2000. A prima-facie benefit of this approach is the ability to specify trading strategies that explicitly account for transaction implementation cost estimates as a function of the trade size. In this paper, the authors present the underlying theoretical framework that unites the concepts of preference-based trading and probabilistic transaction cost estimation. In particular, they develop an analytical generalization of the current market structure constructs of market orders and limit orders. They describe a feasible optimization problem whose solution yields optimal preference profiles, given current market conditions (as reflected by the probability distribution of transaction implementation cost) and a trader-specified coefficient of urgency. [ABSTRACT FROM AUTHOR]

This article considers the background and current market developments relating to the discontinuation of LIBOR. It examines the potential litigation likely to arise for legacy contracts and the alternative contractual fall-back provisions that are being proposed. Finally, it analyses the four markets most affected by the discontinuation of LIBOR—the loan, derivatives, bonds and securitisation markets. [ABSTRACT FROM AUTHOR]

The Spanish Government has completed the implementation of MiFID II, which began last year with the approval of Royal Decree-Law 21/2017 of 29 December. With the approval of Royal Decree-Law 14/2018 of 28 September and Royal Decree 1464/2018 of 21 December, MiFID II is now fully applicable in Spain. This article analyses the main novelties incorporated by European law into the Spanish legal system with regard to the protection of investors in financial products, the improvement of the organisational structure and corporate governance of investment services companies and the security, efficiency, smooth operation and stability of the securities markets. [ABSTRACT FROM AUTHOR]

What were the effects of securities markets’ dynamics on the issue of political securitization, in the sense of the Copenhagen School, in the context of the sovereign debt crisis in the European Monetary Union (EMU)? This article addresses that question in an attempt to bring together the theory of political securitization and the financial securitization of government bonds. In conceptual terms, the article argues that the intervention of securities markets into the securitization of the euro can be understood as a confrontation between two types of validity claims. Securitizing moves, and the response they elicit, together constitute symbolically a political collectivity; this provokes a struggle between the adequate representation of that collectivity and its security concerns. In contrast to this, market communications – in fact, price signals – neither invoke a political collectivity nor can they be semantically refuted. Because of this quality, market signals can amplify or weaken securitizing moves. In the case of the EMU sovereign debt crisis, market communications triggered a privileging of supranational securitizations while impairing national ones. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Administration & Economics is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This legal analysis examines CVM Instruction No. 585 enacted on 5 April 2017 by the Brazilian Securities and Exchange Commission (CVM), which amends the rides applied to foreign issuers and securities certificates issued under the Brazilian Depositary Receipts (BDRs) program. It enables a potential increase in the participation of foreign issuers in the Brazilian capital market, as it allows the sales effort in BDR programs Level I and 11 by means of a public offer with restricted efforts, and it also permits greater diversification of risk on the part of investors that want to increase their exposure to foreign issuers. [ABSTRACT FROM AUTHOR]

Persistent public demands for bankers to behave ethically have not been matched by a similar focus on defining the content of the desired behaviour. This paper attempts to remedy that fail- ing. Drawing from Aristotle, Hume, Rawls, and recent psychological research, it argues that an ethics code grounded in our moral intuitions, suitably refined and tested by reason, is essential for a code to be workable and widely accepted. The intuitions most relevant to banking are those arising from common social practices--namely, mutual promising, game-playing, persuasion, and guardianship. The norms behind mutual promising underpin the entire industry, while those of the other practices inform ethics in trading, sales, and asset management, respectively. The paper then spells out in detail some of those norms; examines the roles that 'playing by the rules', helping competitors, sincerity, bias, disclosure, competence, conflicts of interest, and other factors play in their specification; and discusses the circumstances in which the operation of these social-practice-based ethical norms are tempered by compassion. [ABSTRACT FROM AUTHOR]

Licensing programmes for employees in the securities industry have been introduced in an increasing number of countries and have become a significant element of control of the associated markets, which are important for public finances. This article documents the licensing programme in the Swedish securities industry, and analyses its potential to foster rule compliance and prevent white-collar crime. The programme's knowledge requirements, sanctions system, reporting obligation and organisational structure are central components that are analysed, particularly regarding their ability to create predictability, confidence and interdependent relationships that can counteract risk factors for white-collar crime, namely, social disorganisation, responsibility diffusion, institutional market imbalances and isolated subcultures. [ABSTRACT FROM AUTHOR]

What were the effects of securities markets’ dynamics on the issue of political securitization, in the sense of the Copenhagen School, in the context of the sovereign debt crisis in the European Monetary Union (EMU)? This article addresses that question in an attempt to bring together the theory of political securitization and the financial securitization of government bonds. In conceptual terms, the article argues that the intervention of securities markets into the securitization of the euro can be understood as a confrontation between two types of validity claims. Securitizing moves, and the response they elicit, together constitute symbolically a political collectivity; this provokes a struggle between the adequate representation of that collectivity and its security concerns. In contrast to this, market communications – in fact, price signals – neither invoke a political collectivity nor can they be semantically refuted. Because of this quality, market signals can amplify or weaken securitizing moves. In the case of the EMU sovereign debt crisis, market communications triggered a privileging of supranational securitizations while impairing national ones. [ABSTRACT FROM AUTHOR]

From 2014-15, China witnessed a super bull in its stock market, as the major SSE Composite Index was more than doubled, but it was followed by an unprecedented crash triggering a global sell-off. This article argues that margin trading, which means investors that borrow money from stock brokers or shadow banks to purchase shares, accounted for the stock bubble. [ABSTRACT FROM AUTHOR]