Stock and Derivatives Exchanges in the European Union

Financial Market Infrastructures: Law and Regulation | Edited by Jens-Hinrich Binder and Paolo Saguato | Oxford EU Financial Regulation | 2022

43 Pages Posted: 19 May 2023

See all articles by Matteo Gargantini

Matteo Gargantini

University of Genoa; Genoa Centre for Law and Finance; EUSFIL Jean Monnet Centre of Excellence

Michele Siri

University of Genoa - Law Department; European Banking Institute; EUSFIL Jean Monnet Center of Excellence on Sustainable Finance and Law; Frankfurt School of Finance & Management

Date Written: June 2, 2022

Abstract

This chapter examines the regulation of stock and derivatives exchanges in the European Union. Based on a theoretical analysis of exchanges as transaction platforms, it identifies three primary economic functions: listing, trading, and data vending. The chapter explores each of these functions separately. As for listing, it highlights the distinction between admission to listing and admission to trading in the European Union and the role of regulated markets’ potential conflicts of interest in that function. As for trading, the chapter explores key provisions that contribute to creating liquidity, including market makers, tick sizes, trading obligations, and best execution. It also addresses the regulatory framework for algorithmic and high-frequency trading. As for data vending, the chapter discusses the pre- and post-trade transparency requirements, and the price regulation of market data. Finally, the chapter analyses the determinants of stock and derivatives exchange governance.

Keywords: Capital markets, Financial regulation, Derivatives, Securities Exchange, European Union

JEL Classification: K22, G32, O16

Suggested Citation

Gargantini, Matteo and Siri, Michele, Stock and Derivatives Exchanges in the European Union (June 2, 2022). Financial Market Infrastructures: Law and Regulation | Edited by Jens-Hinrich Binder and Paolo Saguato | Oxford EU Financial Regulation | 2022, Available at SSRN: https://ssrn.com/abstract=4317068

Matteo Gargantini

University of Genoa ( email )

Via Balbi 5
Genova, 16126
Italy

Genoa Centre for Law and Finance ( email )

Via Balbi
22
Genoa, Genoa 16100
Italy

EUSFIL Jean Monnet Centre of Excellence ( email )

Italy

Michele Siri (Contact Author)

University of Genoa - Law Department ( email )

Genoa
Italy

HOME PAGE: http://unige.it/en/

European Banking Institute ( email )

Frankfurt
Germany

HOME PAGE: http://ebi-europa.eu/members/fellow-academic-members

EUSFIL Jean Monnet Center of Excellence on Sustainable Finance and Law ( email )

Italy

HOME PAGE: http://www.eusfil.eu

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

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