Technology And The Regulation Of Financial Markets

This is a reprint of a previously published work. It deals with how emerging technologies have affected financial markets and their regualtion.

This book is a valuable companion for everyone who is interested in the historical context of the co-evolution of financial markets and information technologies in the last 30 years. The contributors analyze system architectures and solution technologies in banking and finance by focusing on the particularities of certain practices and risks.

The financial services industry is being transformed by heightened regulation, technological disruption, and changing demographics. These structural forces have lowered barriers to entry, increasing competition from within and outside the industry, in the form of entrepreneurial fintech start-ups to large, non-financial technology-based companies. The Technological Revolution in Financial Services is an invaluable resource for those eager to understand the evolving financial industry. This edited volume outlines the strategic implications for financial services firms in North America, Europe, and other advanced economies. The most successful banks, insurance companies, and asset managers will partner with financial technology companies to provide a better and more innovative experience services to retail customers and small businesses. Ultimately this technological revolution will benefit customers and lead to a more open and inclusive financial system.

The book provides deep insight into theoretical and empirical evidence on information and communication technologies (ICT) as an important factor affecting financial markets. It is focused on the impact of ICT on stock markets, bond markets, and other categories of financial markets, with the additional focus on the linked FinTech services and financial institutions. Financial markets shaped by the adoption of the new technologies are labeled ‘digital financial markets’. With a wide-ranging perspective at both the local and global levels from countries at varying degrees of economic development, this book addresses an important gap in the extant literature concerning the role of ICT in the financial markets. The consequences of these processes had until now rarely been considered in a broader economic and social context, particularly when the impact of FinTech services on financial markets is taken into account. The book’s theoretical discussions, empirical evidence and compilation of different views and perspectives make it a valuable and complex reference work. The principal audience of the book will be scholars in the fields of finance and economics. The book also targets professionals in the financial industry who are directly or indirectly linked to the new technologies on the financial markets, in particular various types of FinTech services. Chapters 2, 5 and 10 of this book are available for free in PDF format as Open Access from the individual product page at www.routledge.com. They have been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.

This book is an augmented account of Technology and Regulation: How Are They Driving Our Markets?, a conference hosted by the Zicklin School of Business at Baruch College on May 1, 2007. The text includes the edited transcript of the full conference: four panels and the major presentations of three distinguished industry leaders – Ian Domowitz, Managing Director, ITG, Inc.; Erik Sirri, Director of the Division of Market Regulation, US Securities and Exchange Commission; and John Thain, who was CEO of NYSE Euronext at the time of the conference. The book also includes a related paper by Paul Davis, Mike Pagano, and myself: “Divergent Expectations,” Journal of Portfolio Management, Fall 2007. My co-editors and I have worked diligently to make this book, like all the other popular books in the series, more than an historical record. John Byrne, Antoinette Colaninno and I have edited the manuscript heavily for clarity and unity of ideas.

Financial technology is rapidly changing and shaping financial services and markets. These changes are considered making the future of finance a digital one.This Handbook analyses developments in the financial services, products and markets that are being reshaped by technologically driven changes with a view to their policy, regulatory, supervisory and other legal implications. The Handbook aims to illustrate the crucial role the law has to play in tackling the revolutionary developments in the financial sector by offering a framework of legally enforceable principles and values in which such innovations might take place without threatening the acquis of financial markets law and more generally the rule of law and basic human rights. With contributions from international leading experts, topics will include: Policy, High-level Principles, Trends and Perspectives Fintech and Lending Fintech and Payment Services Fintech, Investment and Insurance Services Fintech, Financial Inclusion and Sustainable Finance Cryptocurrencies and Cryptoassets Markets and Trading Regtech and Suptech This Handbook will be of great relevance for practitioners and students alike, and a first reference point for academics researching in the fields of banking and financial markets law.

Technology has important implications for the earnings, cost, risks, competitiveness and location of financial institutions. In this work, leading international scholars discuss how financial supervision and regulation must be adapted to the new risks and new risk management methods.

In recent years, technology has emerged as a disruptive force in the economy and finance, leading to the establishment of new economic and financial paradigms. Focusing on blockchain technology and its implementations in finance, Technology in Financial Markets proposes a novel theoretical approach to disruption. Relying on complexity science, it develops a dynamic perspective on the study of disruptive phenomena and their relationship to financial regulation and the law. It identifies the intrinsic interconnections characterizing the "multidimensional" technology-driven transformations, involving commercial practices, capital markets, corporate-governance, central banking, and financial networks. From this perspective, it considers the way they are reflected at the level of contract law, financial law, corporate law, central banking law. The book adopts a unique comparative approach and explains and clarifies the factual and historical dimensions underlying the emergence of the crypto-economy. In this book blockchain is used as a case study. Blockchain exemplifies the way each subpart of the financial system - commercial practices, financial markets, corporations, central banking, networks - and consequently each subcategory of financial regulation evolves on an individual basis. It shows how such subparts evolve altogether bringing systemic transformations, and ultimately leading to the creation of new economic and financial paradigms. The book considers both these perspectives, analysing the evolution of each subpart and emphasizing the interconnected transformations. In doing this, it adopts the structure of an ascending climax, starting from contracts, and escalating to increasingly broad dimensions, in particular capital markets, corporate governance, central banking, and financial networks.