This research paper examines whether and how much the regulations through the Community Directives and Regulations at European level as well as the laws which govern Money and Capital Markets in the United States helped, strengthened, protected the international financial system, if other markets were developed by moving transactions and if they contributed to the change of the world economic circles. The investigation of the impact on investors and national jurisdictions, namely, whether they are protected and whether all the factors in the system are affected, has concluded that the realization of a actually international single regulatory framework for all financial products is far away from reaching its ultimate and realistic achievement. However, the theoretical existence of a unified regulated market framework and model of organized markets, as long as, with a set of regulatory, organizational and economic policies that will shield it up to the point of a balanced regulation, offering equal information to the participants, with less transaction costs and thus increased transparency, liquidity and reducing market abuse cases and manipulation, is proved as feasible and can be implemented.

This paper aims the research whether the application of European Directive MiFID, had any significant effects on the European Capital Markets and the progress of the European Integration. This new regulation specifies the tasks and responsibilities of the supervisory authorities of the Member State of origin and the host Member State, in order to enhance the certainty of effectiveness of cross border transactions supervision and to reduce the risk of imposing unnecessary legal reforms from the host Member State on investment firms which perform cross border transactions. The research work focuses on the existing regulation and the literature for MiFID and European Integration and on whether the set of its regulation reforms could aim (or not) in contributing to excess of the European Capital markets and Institutions as long as the financial integration of EU. The reasons for the different degrees of integration and liberalization, is essentially related to financial structures. Under this reasoning, we have examined the effects on European Financial Market Integration concerning banks, Stock Exchanges and financial intermediaries and we have concluded, among others, that the aligning of the national regulatory approaches to a common European regulatory system is quite necessary. We finally conclude that MiFID will contribute to reduce problems at country level as the previous experience of the Investment Services Directive, where the European investments and economies of Member States were based mainly on the level of "country" and not of the "sector".

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This paper aims to research whether the use of complex financial products by Hedge Funds, and the Over-the-Counter (OTC) derivatives by Banks, should be additionally regulated. The research work is focused on the existed regulation of Hedge Funds and of credit derivatives and whether a proposed set of regulation reforms could aim in the manipulation of future crisis in the finance environment. The research effort was based on the study of Hedge Funds as a source of investment opportunities for capital markets and economy and of Banks, as described in the literature, as well as the international developments in the regulation of CDS (Credit Default Swaps). The risks faced by investors and banks, studied and analyzed in parallel with the recent efforts to regulate OTC derivatives in European level. The findings and proposals concluded that the impending regulation of the EU, should differentiate the Hedge Funds and redefine their systemic relevance. The findings for the standardized (and non-standardized) OTC derivatives concluded the necessity of the establishment of Central Counterparties, Regulated Reporting Platforms and of a single supervisory authority, responsible for monitoring the regulation and activities of Hedge Funds and the use of CDS by Banks.

Abstract. This paper aims the research whether involving Credit Ratings Agencies (CRAs), regarding the provision of credit risk rating for the banking structured products, as well as the credit clauses of ISDA (International Swaps and Derivatives Association) signed agreements between banks, could affect the banking liquidity. The research work focuses on the existing regulation and the literature for CRAs and on whether a proposed set of regulation reforms could aim in manipulating future crisis in the finance environment. The ISDA operation, the legal framework of its proposed contracts (for banking products transactions) and the decisions of its committees are factors, which can also influence the operation of these products and the banking liquidity. Throughout this system, a procedure occurs with which the activation of hedging instruments (as Credit Default Swaps) is decided, when a "credit event" takes place. The research effort is also based on the study of ISDA contracts as legal tool protecting the banks, bilaterally, from credit event risks. Under this reasoning, we have examined the liquidity effects concerning banks and how this is involved with the changes of the credit ratings. The paper reviews the current European legislation of CRAs, as well as the policy of ISDA through its contracts and from the results ended, suggests specific legislative interferences and changes in ISDA's agreement clauses, to preserve the banking liquidity.