Assessing China's Top-Down Securities Markets

Integration of European securities markets

It is generally recognised that integration of European securities markets is economically beneficial to the Member States of the European Union and the European Economic Area. It promotes competition between securities service providers, enhances efficiency of financial systems and contributes to efficient allocation of resources. Integration can enable businesses to procure cheaper finance th...

Self-Regulation and Securities Markets

Should Securities Markets Be Transparent?

While efficient price discovery is crucial, there is another equally important attribute of markets that merits consideration, namely liquidity. Efficient prices, after all, are unimportant if one can transact only a 100-share lot at these prices. Liquidity was historically provided by dealers who buy or sell securities on demand. In the past, where communication links were poor and buyers and ...

Top-down causation without top-down causes

We argue that intelligible appeals to interlevel causes (top-down and bottom-up) can be understood, without remainder, as appeals to mechanistically mediated effects. Mechanistically mediated effects are hybrids of causal and constitutive relations, where the causal relations are exclusively intralevel. The idea of causation would have to stretch to the breaking point to accommodate interlevel ...

Coase and the Reform of Securities Markets

Do legal rules matter for economic outcomes? Can changing the details of specific laws affect overall institutions in a way that will have a significant short-term impact? Is it particularly effective to change securities law and regulation? For all three questions, a common answer in both economics and law is “no.” The intellectual underpinning for this position is influential work by Ronald C...