Abstract

http://ssrn.com/abstract=1598340
 
 

Citations



 


 



Demutualization and Customer Protection at Self-Regulatory Financial Exchanges


David Reiffen


U.S. Commodity Futures Trading Commission (CFTC)

Michel A. Robe


American University - Kogod School of Business

March 30, 2010

Journal of Futures Markets, Vol. 31, No. 2, pp. 126-164, February 2011.

Abstract:     
In the past decade, many of the world’s largest financial exchanges have demutualized, i.e., converted from mutual, not-for-profit organizations to publicly-traded, for-profit firms. In most cases, these exchanges have substantial responsibilities with respect to enforcing various "trade practice" regulations that protect investors from dishonest agents. We examine how the incentives to enforce such rules change as an exchange demutualizes. In contrast to oft-stated concerns, we find that, in many circumstances, an exchange that maximizes shareholder (rather than member) income has a greater incentive to aggressively enforce these types of regulations.

Keywords: Demutualization, Ownership structure, Regulation of financial exchanges, Enforcement delegation, Trade practice Rules, Broker heterogeneity

JEL Classification: G28, D02, K23

Accepted Paper Series





Not Available For Download

Date posted: May 4, 2010 ; Last revised: January 19, 2011

Suggested Citation

Reiffen, David and Robe, Michel A., Demutualization and Customer Protection at Self-Regulatory Financial Exchanges (March 30, 2010). Journal of Futures Markets, Vol. 31, No. 2, pp. 126-164, February 2011.. Available at SSRN: http://ssrn.com/abstract=1598340

Contact Information

David Reiffen
U.S. Commodity Futures Trading Commission (CFTC) ( email )
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
United States
Michel A. Robe (Contact Author)
American University - Kogod School of Business ( email )
4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States
202-885-1880 (Phone)
202-885-1946 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 387

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.375 seconds