The Regulation of Trading Markets: A Survey and Evaluation

56 Pages Posted: 19 Apr 2017

See all articles by Paul G. Mahoney

Paul G. Mahoney

University of Virginia School of Law

Gabriel V. Rauterberg

University of Michigan Law School

Date Written: April 19, 2017

Abstract

The U.S. equity markets have undergone profound changes since the late 20th century. Electronic order books have almost entirely replaced manual floor- and telephone-based trading. New trading venues and order types have proliferated. Technology made these developments possible, but regulation has also had an important impact on the market’s structural features. This paper surveys market structure regulation and the issues it has raised, including high-frequency trading, non-displayed liquidity, and market centers’ fee structures, each of which has attracted criticism in the popular press and proposals or requests for comment by the Securities and Exchange Commission. We also discuss proposals for alternative market structures.

Keywords: market regulation, market structure

Suggested Citation

Mahoney, Paul G. and Rauterberg, Gabriel V., The Regulation of Trading Markets: A Survey and Evaluation (April 19, 2017). Virginia Law and Economics Research Paper No. 2017-07. Available at SSRN: https://ssrn.com/abstract=2955112

Paul G. Mahoney (Contact Author)

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States
434-924-7121 (Phone)
434-924-7536 (Fax)

Gabriel V. Rauterberg

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States

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