The Economics of the Global Stock Exchange Industry

This book is an economic analysis of the stock exchange industry. The authors draw on theories from micro- and industrial economics to provide a detailed analysis of the industry structure, the strategic behaviour of key participants and the performance of stock exchanges. "Securities exchanges play a significant role in macroeconomics. They engage in the allocation process, which assures that savings are allocated to the most profitable investment opportunities. But what are the forces driving the supply side, namely, the services offered by exchanges? It is not just a matter of market microstructure and the rules governing the price discovery. Rather, it embraces a much wider perspective involving the balance of interests of multiple stakeholders, the competitive strategies of exchanges and other platform operators and the impact of regulation. This book provides an economic analysis of the stock exchange industry. It draws on theories from micro- and industrial economics to provide a detailed analysis of the industry structure, the strategic behaviour of key participants and a methodological framework for assessing the performance of stock exchanges. It provides an overview of the factors driving the consolidation of the industry, and examines the implications of ongoing changes in the regulatory environment. It investigates the functioning of securities exchanges and other trading platforms as firms, assuming an industrial organization perspective and focusing on the competitive behaviour of exchanges, regulation and governance arrangements and their impact on the structure of the industry."-- Provided by publisher Front Matter....Pages i-xiv Securities Industry and Exchange Industry: Organization and Value Chain....Pages 1-34 The Exchange Industry: An Overview....Pages 35-67 Securities Industry Regulation. Implications for Exchanges’ Performances....Pages 68-96 The Governance of Securities Exchanges. New Insights....Pages 97-127 The Economics of Exchanges....Pages 128-163 A Risk-Adjusted Model for Peformance Measurement....Pages 164-197 The Economics of the Exchange Industry: An Empirical Overview....Pages 198-225 Back Matter....Pages 226-277