FMV research cluster seminar: 'Synergies, Risks and Regulation of Stock Exchange Interconnections'
|Speaker:||Dr Joseph Lee, University of Exeter|
|Date:||Thursday 12 January 2017|
|Location:||The Matrix Lecture Theatre, Building: one|
The stock exchange industry is faced with new challenges brought by technology advancement, and the industry has been through several phases of competition and consolidation. Stock exchange interconnections can bring synergies – increasing investors’ exposure to international markets, deepening capital pool and enhancing liquidity, reducing costs of market structure, and innovating new products. The Borsa Italiana-LSE merger, concluded in 2008, represents an interesting evidence to discuss.
Currently, no regulatory regime has given special attention to facilitating these exchange–led connecting activities. Policy to drive competition in capital market has – to some extent - been successful in breaking through the silo models operated by many exchanges. Market stability measures can, on the one hand, facilitate disruption of national barriers. On the other hand, they can also have the effect of foreclosing competition between securities transactions providers at cross-border level such as the ECB’s location-policy on clearing houses.