U.S. Securities Regulation in a World of Global Exchanges
Georgetown University - Robert Emmett McDonough School of Business
Harvard Law School; European Corporate Governance Institute (ECGI)
Jonathan G. Katz
U.S. Securities and Exchange Commission
Exchanges: Challenges and Implications, Euromoney, 2007
Harvard Law and Economics Discussion Paper No. 569
ECGI - Finance Working Paper No. 146/2007
Recently there has been a dramatic change in the organizational structure of exchanges as they have demutualized and converted into for-profit entities. This has been accompanied by a public listing of shares on the exchange itself. These changes have been driven by technological and competitive forces and have resulted in a new paradigm for the governance of exchanges. The new organizational structure has raised several regulatory issues. At the same time that exchanges have themselves become public companies, there have also been major changes in the governance requirements of listed companies that trade on exchanges. Many of these changes have been prompted by the Sarbanes-Oxley legislation, new exchange regulations, and changes mandated by the SEC. The new requirements have impacted the capital raising process globally and the choice of listing venue. These developments have in turn intensified competition among exchanges and may lead to a wave of cross-border consolidations. Globalization of exchanges will create challenges for nation-based regulation and we offer some suggestions for resolving the regulatory impediments.
Number of Pages in PDF File: 36
Keywords: stock exchange mergers, NYSE, Euronext, Sarbanes-Oxley, cross-listing, demutualization, stock exchanges, SRO
JEL Classification: D40, D23, G10, G20, G28, G32, G38, K22, L10Accepted Paper Series
Date posted: December 11, 2006
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