Abstract

http://ssrn.com/abstract=958260
 
 

Citations (4)



 
 

Footnotes (218)



 


 



The Once and Future New York Stock Exchange: The Regulation of Global Exchanges


Roberta S. Karmel


Brooklyn Law School


Brooklyn Journal of Corporate, Financial & Commercial Law, 2007
Brooklyn Law School, Legal Studies Paper No. 70

Abstract:     
The NYSE Group, Inc., the parent of the New York Stock Exchange, Inc. ("NYSE"), and Euronext NV ("Euronext"), are planning to merge, creating the first trans-Atlantic linkup of stock and derivatives markets. At least three reasons for a merger between the NYSE and Euronext have been put forward. First, is the idea that investors will be able to buy stocks in the U.S. and Europe, thus making it more attractive and cheaper for them to buy foreign shares. The NYSE and other U.S. exchanges have been losing listings, and especially IPOs to European exchanges and merging with a European exchange may be a way to recapture the fees and trading profits from these listings. A second justification for the NYSE-Euronext merger is that it will give the NYSE a derivatives platform. When two exchanges combine, they can cut staff and share technology. A third reason that has been asserted for the creation of a global exchange by the NYSE is that the NYSE and Euronext will be able to operate from a common trading platform.

Despite the several sound reasons for a trans-national merger between exchanges, stock exchanges cannot compete as ordinary business enterprises because of the manner in which they are regulated and because they function as self-regulatory organizations. Unless such regulation is significantly changed, the effort by exchanges to become global companies will be impeded. This paper will discuss the impediments to the creation of a global exchange posed by the U.S. federal securities laws and how these laws could be changed to permit the possible synergies of a combination between the NYSE and a foreign exchange to be better achieved.

Number of Pages in PDF File: 62

Keywords: exchanges, stock exchange, self-regulatory organizations, securities

JEL Classification: G15, G18, K22, K23

Accepted Paper Series





Download This Paper

Date posted: January 22, 2007  

Suggested Citation

Karmel, Roberta S., The Once and Future New York Stock Exchange: The Regulation of Global Exchanges. Brooklyn Journal of Corporate, Financial & Commercial Law, 2007; Brooklyn Law School, Legal Studies Paper No. 70. Available at SSRN: http://ssrn.com/abstract=958260

Contact Information

Roberta S. Karmel (Contact Author)
Brooklyn Law School ( email )
250 Joralemon Street
Brooklyn, NY 11201
United States
(718) 780-7946 (Phone)
(718) 780-0375 (Fax)

Feedback to SSRN


Paper statistics
Abstract Views: 1,980
Downloads: 484
Download Rank: 32,304
Citations:  4
Footnotes:  218
People who downloaded this paper also downloaded:
1. Clearinghouse Overconfidence
By Mark Roe

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.765 seconds