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This study investigates the impact of Market Abuse Directive (MAD) adoption by EU countries on capital market allocation efficiency. Three dimensions of allocation efficiency are examined: investment-Q sensitivity, the link between investment rates and future profitability, and stock price...
Persistent link: https://www.econbiz.de/10012896142
will offer a guide to the antitrust community that will cover the U.S. financial sector, financial regulation, and the … debacle and subsequent financial crisis. The tensions that can arise between financial regulation and antitrust will be … market power. Although much progress has been made in removing anticompetitive elements from financial regulation over the …
Persistent link: https://www.econbiz.de/10013158068
We model the behavior of dealers in Over-the-Counter (OTC) derivatives markets where a small number of dealers trade with a continuum of heterogeneous clients (hedgers). Imperfect competition and (endogenous) default induce a familiar trade-off between competition and risk. Increasing the number...
Persistent link: https://www.econbiz.de/10009668404
Persistent link: https://www.econbiz.de/10008737369
This paper examines the supervision of Central Clearing Counterparties (CCPs) in Europe, since they function as an important pillar of the Capital Markets Union. Our research indicates that the current national-based supervision of CCPs leads to regulatory arbitrage and exposes the EU to huge...
Persistent link: https://www.econbiz.de/10012051209
A new approach and a new mind-set are needed for the regulation of financial markets. Under our existing trajectory …, regulation will become inefficient, unwieldy, and too costly as it attempts to deal with an ever–more complex financial system …-set is the idea that not everything must be regulated. A focused approach to regulation would separate what is regulated from …
Persistent link: https://www.econbiz.de/10013004221
. Our framework combines elements from game theory, political science, the economics of regulation, and behavioral finance … to analyze how financial market regulation in the United States has developed in response to the global financial crisis …
Persistent link: https://www.econbiz.de/10013139682
systemic risk. A wide consensus now exists among them that network theory is the natural framework for studying systemic risk …. Yet, most of the existing rules in financial regulation are still “atomistic,” in that they fail to incorporate the fact … network theory (network-sensitive policies) can address systemic risk more effectively than traditional atomistic policies …
Persistent link: https://www.econbiz.de/10012867572
systemic risk. A wide consensus now exists among them that network theory is the natural framework for studying systemic risk …. Yet, most of the existing rules in financial regulation are still “atomistic,” in that they fail to incorporate the fact … network theory (network-sensitive policies) can address systemic risk more effectively than traditional atomistic policies …
Persistent link: https://www.econbiz.de/10012870636
This paper examines capital adequacy regulation in Germany. The first part reviews capital adequacy regulation from the …
Persistent link: https://www.econbiz.de/10013015169