Abstract

This research paper examines whether and how much the regulations through the Community Directives and Regulations at European level as well as the laws which govern Money and Capital Markets in the United States helped, strengthened, protected the international financial system, if other markets were developed by moving transactions and if they contributed to the change of the world economic circles. The investigation of the impact on investors and national jurisdictions, namely, whether they are protected and whether all the factors in the system are affected, has concluded that the realization of a actually international single regulatory framework for all financial products is far away from reaching its ultimate and realistic achievement. However, the theoretical existence of a unified regulated market framework and model of organized markets, as long as, with a set of regulatory, organizational and economic policies that will shield it up to the point of a balanced regulation, offering equal information to the participants, with less transaction costs and thus increased transparency, liquidity and reducing market abuse cases and manipulation, is proved as feasible and can be implemented.

Highlights

  • The efforts to make economic policy interventions in connection with market regulation are the challenge in our days, whether and how they can interact with each other and depict their effect on the economic reality

  • The δ describes the dispersion of the prices of the U market assets, which is analyzed as sufficiently large, giving a large dispersion of values in the area of the pdf curve, around the average (μ). It is depicted a dispersed sample of U market share prices, as the price setting given by traders / dealers

  • Theorem, as a descriptive model demonstrates that by switching from a market of multilateral trading (Auction trading market), to a market that we have, essentially, incorporated into it the market of bilateral negotiations (Dealership/ interbank market), we move to a Unified (Single) market, where there is a greater probability of trading orders aggregation and a higher probability of price finding and lower costs, within a smaller range of theoretical valuations

Read more

Summary

Introduction

The efforts to make economic policy interventions in connection with market regulation are the challenge in our days, whether and how they can interact with each other and depict their effect on the economic reality. The overriding task of international financial regulation is to minimize the systemic risk arising from the operation of capital and derivatives markets. A strong political support for the efforts of the supervisory authorities is important if we are to succeed in providing an effective communication network between the European Union supervisory authorities and the other international supervisory centers. This network must adopt innovative means of communication to address co-operation between home and host supervisors and to strengthen a common supervisory culture. In the same research context, we mention the concentration and attempt to resolve barriers, products‟ unification and trading, liquidation, etc., between the Western-style financial markets and products and the Islamic markets and products covered by Sharia'a

Methodology of Research and Literature Review
Concluding Comments and Further Research
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call