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Intra-country regulation of share markets: does one size fit all?

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  • Glenn Boyle
  • Richard Meade

Abstract

A large body of evidence suggests that investor protection regulationassists the development of major stock exchanges but this leaves openthe question of whether or not the same level of regulation should beapplied to all centralised trading platforms. Allowing for regulatoryvariation permits a wider choice of investment opportunities for liquidity conscious investors lowers some firms' cost of capital and enhancesplatform competition while potentially negative spillover mechanismslack both theoretical credibility and empirical support. Overalluniformity in investor protection regulation seems designed to provide anexpensive solution to a doubtful problem.
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  • Glenn Boyle & Richard Meade, 2008. "Intra-country regulation of share markets: does one size fit all?," European Journal of Law and Economics, Springer, vol. 25(2), pages 151-165, April.
    • Handle: RePEc:kap:ejlwec:v:25:y:2008:i:2:p:151-165
    DOI: 10.1007/s10657-008-9043-0
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    Cited by:

    1. Tim Lohse & Christian Thomann, 2015. "Are bad times good news for the Securities and Exchange Commission?," European Journal of Law and Economics, Springer, vol. 40(1), pages 33-47, August.

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    More about this item

    Keywords

    Share market regulation; Financial development; Alternative trading platforms; G18; K22;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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