Chasing the tape : information law and policy in capital markets / Onnig H. Dombalagian.
2015
KF1070 .D66 2015 (Map It)
Available at Cellar
Formats
| Format | |
|---|---|
| BibTeX | |
| MARCXML | |
| TextMARC | |
| MARC | |
| DublinCore | |
| EndNote | |
| NLM | |
| RefWorks | |
| RIS |
Items
Details
Title
Chasing the tape : information law and policy in capital markets / Onnig H. Dombalagian.
Published
Cambridge, Massachusetts : The MIT Press, [2015]
Call Number
KF1070 .D66 2015
ISBN
9780262028622 (hardcover)
026202862X (hardcover)
026202862X (hardcover)
Description
xxii, 357 pages : illustrations ; 24 cm.
System Control No.
(OCoLC)885547962
Bibliography, etc. Note
Includes bibliographical references (pages 323-345) and index.
Series
Record Appears in
Table of Contents
Series Foreword
xiii
Acknowledgments
xvii
Introduction
xix
1.
Overview
1
Flows of Financial Information
3
Company Information
3
Market Information
4
Credit Analysis
5
Benchmarks
6
Regulatory Framework
6
US Securities and Exchange Commission
7
US Commodity Futures Trading Commission
8
European Securities Market Authority
9
Self-Regulatory Organizations
10
Standard-Setting Organizations
12
Market Intermediaries
12
Objectives of Information Policy
13
Transparency and Access
13
Standardization
14
Meaning
14
Integrity
15
Challenges to Information Policy
16
Automation
16
Anxiety
17
Globalization
17
I.
Regulation of Information Flows
19
2.
Theory
21
Market Efficiency
22
Market Efficiency Defined
22
Mechanisms of Market Efficiency
23
Modern Perspectives
25
Regulatory Implications
26
Market Failures: Justifications for Intervention
27
Information as a Public Good
27
Exclusivity and Dominant Market Share
29
Agency Costs
30
Asymmetry of Sophistication or Access
31
Regulatory Failure: The Case for Restraint
31
Institutional Incentives
32
Institutional Competence
33
Institutional Design
34
Information Policy and the Financial Crisis
34
3.
Company Information
37
Inside Information
38
Descriptive Information
38
Financial Information
41
Forward-Looking Information
42
Qualitative Disclosures
43
Outside Information
44
Justifications for Regulation
44
Ensuring Adequate Disclosure
45
Limiting Selective Disclosure
46
Verification
47
Implementation
48
Scope
49
Format and Content
50
Verification
51
Dissemination
53
Retrieval
54
4.
Market Information
55
Types of Market Information
56
Pre-trade Transparency
56
Post-trade Transparency
60
Justifications for Regulation
61
Competition among Market Centers
61
Fragmentation
62
Internalization
63
Adverse Selection
63
Market Impact
64
Regulation of Market Information
64
Equity Securities
66
Other Instruments
69
Market Information and the Financial Crisis
71
5.
Credit Analysis
73
Information Used in Credit Analysis
74
Government and Corporate Debt
75
Asset-Backed Securities
76
Regulatory Concerns
81
Formalizing the Regulatory Franchise
81
Improving Informational Value
82
Encouraging Independent Diligence
83
Regulatory Responses
84
Professionalization of Intermediaries
84
More Granular Disclosure
85
Reduced Reliance on Credit Ratings
86
6.
Benchmarks
89
Benchmark Design
89
Stock Indexes
90
Other Asset-Based Indexes
91
Interest Rate Indexes
91
Benchmark Products
93
Sponsorship
93
Secondary Market Trading
94
Justification for Regulation
95
Integrity of Benchmark Inputs
95
Integrity of Benchmark Calculation
96
Competition among Benchmark Products and Markets
97
Regulation of Benchmarks
97
Governance and Accountability
97
Composition, Inputs, and Calculation
98
Listing of Benchmark Contracts
100
II.
Goals of Information Policy
101
7.
Transparency and Access
103
Justifications for Selective Transparency or Access
104
Inability to Internalize Benefits
105
Price Discrimination
105
Relations with Professional Investors
106
Protecting against Civil Liability
107
Criteria for Regulating Transparency
107
Issuer Size
108
Size of the Investor Base
108
Sophistication of the Investor Base
109
Regulating Access
110
Usage
110
Type and Depth
111
Pricing
111
Channels
112
Tiering Transparency and Access
113
Issuer-Driven Approaches
114
Investor-Driven Approaches
114
Market-Driven Approaches
115
8.
Standards
117
Modes of Standardization
117
Technical Standards
118
Content Standards
119
Modes of Intervention
123
Regulatory Standard-Setting
123
Delegation to Self-Regulatory Organizations
125
Delegation to Private Standard-Setting Bodies
125
Regulating Private Standard-Setting
126
Accessibility
126
Funding
127
Governance
128
Processes
129
9.
Meaning
131
Role of Intermediaries in Creating Meaning
132
Aggregation
132
Verification
132
Interpretation
133
Regulating Informational Intermediation
134
Regulation as Utility or Cartel
134
Regulation as Gatekeeper
137
Incentive-Based Approaches
141
Compensation by Users
141
Compensation from Other Sources
142
Performance Standards
143
10.
Integrity
145
Threats to Integrity
146
Fraud
146
Manipulation and Disruption
147
Abuse of Nonpublic Information
148
Continuity
148
Operational Capability
149
Systemic Risk
150
Role of Private Litigation and Public Enforcement
150
Remedial Function of Private Litigation
151
Private Litigation in Other Contexts
152
Balancing Private Litigation and Public Enforcement
153
Public Enforcement and Other Alternatives
154
Surveillance: Markets and Market Systems
155
Role of Self-Regulatory Organizations
156
Direct Regulatory Surveillance
158
III.
Challenges Facing Information Policy
161
11.
Automation
163
Impact of Automation
164
Order Matching
164
Order Generation and Routing
165
Algorithmic Trading
165
Liquidity Provision
166
Challenges
166
Informational Efficiency
167
Liquidity
168
Integrity
169
Benchmarks
170
Fair Access
171
Company Disclosures
172
Regulatory Strategies
172
Enhancing Controls
173
Suppressing Message Traffic
173
Regulating Algorithmic Trading
174
Improving Limit Order Protection
175
Implications for Information Policy
176
12.
Anxiety
179
Causes of Information Anxiety
180
Ratcheting Disclosure
180
Financial Innovation
181
Disintermediation
182
Fragmentation
182
Impact of Informational Anxiety
183
Professional Users
183
Nonprofessional Users
185
Originators and Intermediaries
186
Monitors
187
Regulatory Strategies
188
Filtering Choice
188
Heightening Professional Duties
189
Implications for Information Policy
191
13.
Globalization
195
Impact of Globalization on Capital Markets
196
Cross-border Investment
196
Cross-border Trading
197
Cross-border Market Centers
197
Challenges
198
Diversity
199
Harmonization
200
Comity
201
Regulatory Strategies
202
Issuer Choice
202
Accommodating Foreign Practices
203
Transnational Standard-Setting
204
Mutual Recognition
205
Implications for Information Policy
206
Conclusion
209
Appendix: Legal Protection for Information in the United States
213
Abbreviations
219
Notes
221
Glossary
315
Bibliography
323
Index
347