nep-fmk New Economics Papers
on Financial Markets
Issue of 2009‒11‒07
two papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Informed Trading in Parallel Bond Markets By Paola Paiardini
  2. The reform of UK financial regulation By Maximilian J. B. Hall

  1. By: Paola Paiardini (School of Economics, Mathematics & Statistics, Birkbeck)
    Abstract: In this paper we investigate the presence of asymmetric information in the parallel trading of ten-year government fixed rate bonds (BTP) on two secondary electronic platforms: the business-to-business (B2B) MTS platform and the business-to-customer (B2C) BondVision one. The two platforms are typified by a different degree of transparency. We investigate whether the probability to encounter an informed trader on the less transparent market is higher than the corresponding probability on the more transparent one. Our results show that on BondVision, that is the less transparent platform, the probability of encountering an informed trader is higher. Finally we perform a series of tests to check the robustness of our estimates. Two tests do not meet the hypothesis of independence. Nevertheless, these findings do not controvert the hypothesis of our model, but call for further analysis.
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:bbk:bbkefp:0908&r=fmk
  2. By: Maximilian J. B. Hall (Dept of Economics, Loughborough University)
    Abstract: Since the enactment of the new Banking Act in February 2009, with a new 'Special Resolution Regime' at its heart, the debate about how to reform the UK's financial regulatory and supervisory framework has intensified. A major catalyst for this was the publication of Lord Turner's 'Review' in March 2009, which was followed by the Government's White Paper on financial reform in July. The same month the Conservative Party revealed its own White Paper on the subject, with both the Bank of England and the Financial Services Authority contributing to the debate at frequent intervals. The purpose of this article is to review and analyse these documents and viewpoints before coming to a conclusion about the most appropriate way forward on the domestic financial regulatory front.
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:lbo:lbowps:2009_16&r=fmk

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