Taking Stock in Stock Markets: The Changing Governance of Exchanges

Exchange trading rules and stock market liquidity☆

“…The findings in these papers are consistent with a broader literature on the importance of securities regulation and market surveillance for market efficiency and integrity. 1 More generally, our paper contributes to the general question of 1 See, e.g., Aggarwal (2001), Aggarwal and Wu (2003), Allen and Gale (1992), Allen and Gorton (1992), Carson (2003), Clayton et al (2006), Comerton-Forde and Rydge (2006), Comerton-Forde and Tang (2007, Daouk et al (2006), DeMarzo et al (2005, Gerard and Nanda (1993), Harris (2006), Harris (2002), Hillion and Suominen (2004), Jarrow (1992Jarrow ( , 1994, Kumar and Seppi (1992), La Porta et al (1997Porta et al ( , 1998Porta et al ( , 1999Porta et al ( , 2002Porta et al ( , 2006, Mahoney (1999), Merrick et al (2005), Ni et al (2005), Pagano et al (2001Pagano et al ( , 2002, Peng andRöell (2009), O'Hara andMendiola (2003), Pirrong (1993Pirrong ( , 1995aPirrong ( ,b, 1999Pirrong ( , 2004, , Pistor and Wu (2003), Prichard (2003, Reiffen and Robe (2007), Romano (1993Romano ( , 2001 the value of broadly framed versus specific rules in regulating markets and society (see, e.g., Ferguson and Peters, 2003;<...…”

Global Market Surveillance

“…This is perhaps intuitive as securities commissions are less likely to view themselves as competitors among regulatory bodies than exchanges, which are more commercial in nature. 6 Note that there exists considerable debate about the effectiveness of SROs, especially in light of exchanges demutualizing, moving from the not-for-profit model to for-profit model and the resulting conflicts of interest from markets competing with one another (DeMarzo, Fishman, and Hagerty, 2005;Carson, 2003;Fleckner, 2006;Karmel, 2002;O'Hara and Mendiola, 2003;Pritchard, 2003;Romano, 2002;Reiffen and Robe, 2007). Our findings contribute to this literature by indicating that exchanges continue to have a self-interested role in maintaining the integrity of their own market in order to attract new listings and increase trading activity.…”

Exchange Trading Rules and Stock Market Liquidity

“…The findings in these papers are consistent with a broader literature on the importance of securities regulation and market surveillance for market efficiency and integrity. 1 More generally, our paper contributes to the general question of 1 See, e.g., Aggarwal (2001), Aggarwal and Wu (2003), Allen and Gale (1992), Allen and Gorton (1992), Carson (2003), Clayton et al (2006), Comerton-Forde and Rydge (2006), Comerton-Forde and Tang (2007), Daouk et al (2006), DeMarzo et al (2005), Gerard and Nanda (1993), Harris (2006), Harris (2002), Hillion and Suominen (2004), Jarrow (1992Jarrow ( , 1994, Kumar and Seppi (1992), La Porta et al (1997, 2006, Mahoney (1999), Merrick et al (2005), Ni et al (2005), Pagano et al (2001Pagano et al ( , 2002, Peng andRöell (2009), O'Hara andMendiola (2003), Pirrong (1993Pirrong ( , 1995aPirrong ( ,b, 1999Pirrong ( , 2004, , Pistor and Wu (2003), Prichard (2003, Reiffen and Robe (2007), Romano (1993Romano ( , 2001 the value of broadly framed versus specific rules in regulating markets and society (see, e.g., Ferguson and Peters, 2003;Stevenson, 2005).…”