Advanced Search
MyIDEAS: Login

Regulation of Automated Trading Systems

Contents:

Author Info

  • Ian Domowitz
  • Ruben Lee

Abstract

The automation of trading markets has given rise to a variety of regulatory concerns. We briefly review the regulatory approach used by the U.S. Securities and Exchange Commission in dealing with automation of equity markets and the growth of proprietary trade execution systems in these markets. It is argued that the statutory definitions underlying regulation of such institutions are no longer viable in the face of technological advances in trading system technology. Alternative approaches to the regulation of trading systems are examined. We propose and analyze a strategy composed of the separation of the regulation of market structure from the regulation of other areas of public concern, and the employment of competition policy to regulate market structure. A central implication of this approach is that there should be no distinction in the regulation of market structure issues between institutions now classified as securities exchanges and those which are classified as broker-operated trading systems.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Institute for Policy Resarch at Northwestern University in its series IPR working papers with number 96-30.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:wop:nwuipr:96-30

Contact details of provider:
Postal: 2040 Sheridan Road, Evanston, IL 60208-4100
Phone: 847-491-8712
Email:
Web page: http://www.nwu.edu/IPR/publications/wpindex1.html
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wop:nwuipr:96-30. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.