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Donald, David C. --- "Networked securities markets: from cross-listing to direct connection" [2020] ELECD 212; in Arner, W. Douglas; Wan, Yee Wai; Godwin, Andrew; Shen, Wei; Gibson, Evan (eds), "Research Handbook on Asian Financial Law" (Edward Elgar Publishing, 2020) 86

Book Title: Research Handbook on Asian Financial Law

Editor(s): Arner, W. Douglas; Wan, Yee Wai; Godwin, Andrew; Shen, Wei; Gibson, Evan

Publisher: Edward Elgar Publishing

Section: Chapter 6

Section Title: Networked securities markets: from cross-listing to direct connection

Author(s): Donald, David C.

Number of pages: 15

Abstract/Description:

Securities markets can be linked by dual or cross-listings, international funds of funds, and direct connection between trade-matching platforms. The development of this networking process has been a product of changing technology, the shape of law and the profit incentives of leading broker-dealers. The relative value of different methods of linkage should be judged on the basis of the stage of technological development, market liquidity, efficiency and fairness to the constituencies using markets. Securities markets consist of three, main constituencies: issuers of securities, investors in securities, and broker-dealers trading in securities. Each of the linkage methods affect the balance of costs and benefits to these constituencies differently. This chapter examines the evolution of these three networking arrangements against technological change and in connection with such costs and benefits.