Achieving Market Integration

Achieving Market Integration

by Scott McCleskey
Released December 2003
Publisher(s): Butterworth-Heinemann
ISBN: 9780080493176

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Book description

Best execution, market integration, and other major financial market issues have traditionally been dealt with as separate matters requiring individual solutions. In Achieving Market Integration the author demonstrates the interrelated nature of these and other imperative problems, and sensibly reduces them to their common fundamental principles. Beginning with an in-depth examination of best execution in today's multiple-market environment, the book moves logically into an examination of market structure and the problems of achieving genuine integration. The book makes the case that order interaction is fundamental to addressing each of these issues, and develops a unified regulatory approach to achieve true market integration based on intermarket linkages and a cross-market best execution policy. This unique approach culminates in a coherent set of policy recommendations and an innovative framework for assessing the effectiveness of future policy proposals.

*The first book on this important subject for the finance community
*Explains the aims and proposes solutions to the difficulties of establishing a stock market that integrates the diverse national exchanges around Europe
*Provides a discussion point for those lobbying the European Commission on formulating regulation for an integrated European capital market

Table of contents

  1. Front Cover
  2. Achieving Market Integration
  3. Contents
  4. Acknowledgements
  5. Preface
  6. Foreword
  7. Chapter 1. Introduction
  8. Part I: Best Execution
    1. What is best execution - an introduction to the concept
    2. Chapter 2. Is this Regulation Necessary?
      1. 2.1 Why should best execution be regulated?
      2. 2.2 State or self-regulation?
      3. 2.3 The state as provider of standardisation
      4. Conclusion
    3. Chapter 3. Fundamental Issues
      1. 3.1 To whom should the standards apply?
      2. 3.2 Assessing execution
      3. 3.3 The approach: “conceptual” or “prescriptive”?
      4. 3.4 The scope: single or multiple markets?
      5. 3.5 The details: what factors constitute best execution?
      6. 3.6 Price and non-price dimensions
      7. 3.7 Speed of execution
      8. 3.8 Certainty of execution
      9. 3.9 Market impact
      10. 3.10 Non-standard settlement
      11. 3.11 Counterparty risk limits
      12. 3.12 Other issues (1/2)
      13. 3.12 Other issues (2/2)
      14. Conclusion
    4. Chapter 4. Putting it Together: Elements of a Sound Best Execution Policy
      1. 4.1 Elements of an effective best execution policy
      2. 4.2 The enforceability/flexibility dilemma
      3. 4.3 Enforcement: visibility and clarity
      4. 4.4 Determining the benchmark
      5. 4.5 Calculating the benchmark
      6. Conclusion
    5. Chapter 5. Comparing Approaches
      1. 5.1 Overview
      2. 5.2 Best execution in the US markets
      3. 5.3 Best execution in the United Kingdom
      4. 5.4 Introduction of a multiple exchange environment
      5. 5.5 The “relevant market” condition
      6. 5.6 Board Notice 542
      7. 5.7 FSMA and the Conduct of Business Sourcebook
      8. 5.8 The FSA’s statutory requirements
      9. 5.9 European Union regulation
      10. Summary
      11. Conclusion
    6. Chapter 6. A Legal Approach
      1. 6.1 Fiduciary responsibility and the “shingle theory”
      2. 6.2 Cases and decisions
      3. 6.3 ICE securities
      4. 6.4 Limitations
      5. 6.5 Competition issues
      6. Conclusion
    7. Chapter 7. Technological Considerations
      1. 7.1 The best execution process (1/4)
      2. 7.1 The best execution process (2/4)
      3. 7.1 The best execution process (3/4)
      4. 7.1 The best execution process (4/4)
      5. Conclusion
      6. Best Execution. Conclusions
  9. Part II: Market Integration
    1. Introduction
    2. Chapter 8. Liquidity, Market Fragmentation and Price Formation
      1. 8.1 What is liquidity?
      2. 8.2 Liquidity begets liquidity
      3. Conclusion
    3. Chapter 9. Fragmentation and Concentration
      1. 9.1 Concentration rules in Europe and the United States
      2. 9.2 Alternative Trading Systems (ATSs)
      3. Conclusion
    4. Chapter 10. Clearing and Settlement
      1. 10.1 The nature of clearing and settlement arrangements
      2. Conclusion
    5. Chapter 11. Old Solutions to New Problems
      1. 11 .I The integration of the US markets
      2. 11.2 Rules
      3. 11.3 Pan-European markets
      4. Conclusion
    6. Chapter 12. Malting Integration Work: The European Case
      1. 12.1 Treaty of Rome
      2. 12.2 Constructing a market system
      3. 12.3 Overcoming inertia - best execution as a necessary element of market integration
      4. 12.4 Is a “super-regulatory” necessary?
      5. Conclusion
    7. Market Integration: Conclusions
  10. Part III: Making Market Integration Work
    1. Chapter 13. State vs Market - Who Regulates the Integrated Market?
      1. Conclusion
    2. Chapter 14. Conclusions
  11. Appendix A. Selected Best Execution Terminology
  12. Appendix B. Proposed Best Execution Policy
  13. Further Reading
  14. Selected Bibliography
  15. Index

Product information

  • Title: Achieving Market Integration
  • Author(s): Scott McCleskey
  • Release date: December 2003
  • Publisher(s): Butterworth-Heinemann
  • ISBN: 9780080493176