Towards an Economic Analysis of Financial Markets Regulation?

Abstract

Since the 1980s a number of methods and models were developed to evaluate effects of regulatory interventions in financial markets. Most of them are based on a simple cost-benefit analysis with system stability, system efficiency and stakeholder protection as target function variables. Critical discussions of this models focus on arguments like normative basis, teleological orientation, completeness, methodological aspects etc. A possible answer to this criticism could be a score-card oriented approach, including each a system, process, market and value dimension. Such a model makes it possible to implement different methods and procedures with both a quantitative and qualitative analysis focus in an accumulated way.

Competition between financial markets in Europe: what can be expected from MiFID?

“…The Committee of European Securities Regulators (CESR) plays an important role in the entire process. For example, CESR 1 See, e.g., Bernet (2005) for an economic analysis of financial market regulation.…”