Biblioteca Mario Rostoni

 
 

Trends in the European securities industry

Biblioteca M. Rostoni

Corso Matteotti, 22
21053 Castellanza (VA)
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Trends in the European securities industry

/ edited by Valer Lazzari. - Milano : Egea, 2011. - xvi, 277 p. ; 24 cm. - Sul front.: Emittenti titoli. - ISBN 978-88-238-4280-9.

This book presents the results of new research promoted by Emittenti Titoli on the evolutionary trends in the European securities industry, with some special regard to the Italian financial market.

The studies collected in the volume deal with the costs and quality of listing, trading, post-trading and regulatory services offered by exchanges, other trading platforms, central depositories, intermediaries and regulatory agencies, from the viewpoint of the issuers. They shed light on some topical problems that issuers must confront when they decide to go and stay public.

 

INDICE

PREFACEIX
INTRODUCTIONXI
Ch.1 GOING PUBLIC AND LISTING FEES AROUND THE WORLD - Manuela Geranio and Valter Lazzari1
1 Introduction1
2 Becoming a Public Company: What Does It Mean Nowadays?5
2.1 Going and Being Public in an EU Regulated Market5
2.2 Going and Being Public in a Self Regulated Market6
2.3 Going and Being Public in Non-EU Jurisdictions9
3 Listing Services12
4 Admission Fees: Rationale and Structure14
4.1 Fec Floorand Cap19
4.2 A Comprehensive Comparison23
5 Annual Fee: Rationale and Structure27
5.1 Fee Floor and Cap27
5.2 A Comprehensive Comparison30
5.3 Annual Listing Costs: the BIT Case32
6 Fee Comparison over Time36
7 Admission and Annual Fees in Self Regulated Markets37
8 Listing Fees for Corporate Bonds and Warrants40
9 Exchange Fees for Further Corporate Actions41
10 Regulatory Fee Due to the Authority42
11 Conclusions47
References49
Ch.2 AN ASSESSMENT OF THE QUALITY OF LISTING SERVICES: THE ITALIAN CASE - Valter Lazzari and Giovanna Zanotti51
1 Introduction 51
2 The Design of the Experiment53
3 The Description of the Sample55
4 The Support in Fulfilling the Reporting Obligations58
5 The Support for Corporate Actions63
6 The Educational Services67
7 The "investor Relations" Service70
8 Ancillary Services73
9 The Costs of Being Public75
10 The Financial Supervisory Authority77
10.1 The Quality of the Interaction77
10.2 The Costs of the Domestic Financial Service Authority80
11 The Overall Costs of Being Listed82
12 Conclusions87
References88
Ch.3 THE EMERGING LANDSCAPE IN EUROPEAN SECURITIES TRADING - PeTer Gomber and Marus Gsell89
1 Introduction89
2 Requirements on Capital Markets: The issuers Perspective90
2.1 Market Integrity91
2.1.1 Fairness of Markets92
2.1.2 Efficient and Correct Valuation92
2.1.3 Regulatory Responsibility93
2.2 Market Quality93
2.2.1 Liquidity94
2.2.2 Volatility94
2.3 Visibility94
3 Regulatory Changes to the European Securities Trading Landspe95
3.1 The Trading Landscape Before MiFID95
3.2 MiFID: The New Regulatory Framework in Europe96
3.2.1 New Market Venues97
3.2.2 Pre- and Post-Trade Transparency99
3.2.3 Best Execution101
3.3 MiFID vs. RegNMS: A Comparison of EU and US Regulation102
3.3.1 Market Venues: MTFs vs. ECNs102
3.3.2 Best Execution: EU Pre-Trade Transparency vs. US Trade-Through Rule103
3.3.3 Market Data: EU Post-Trade Transparency vs. US Consolidated Tape104
4 MiFIDs Implications for Trading104
4.1 Market Models105
4.1.1 Regulated Marketsand MTFs105
4.1.2 Internalisation: Systematic lnternalisers109
4.1.3 Block Trading: Crossing Networks / Dark Pools110
4.2 Market Fragmentation112
4.3 Market Data117
4.3.1 Pre-Trade Market Data118
4.3.2 Post-Trade Market Data118
4.4 MiFID Review 20l0119
5 Conclusion I Policy Implications for Issuers120
References121
Ch. 4 THE FRAGMENTATION OF THE EUROPEAN EQUITY MARKRT - Stephen Grob127
1 Introduction 127
2 MiFID in a Global Context: Rules vs. Principles Based Regulation128
3 The impact of MiFID130
4 Increased Competition: Fragmentation across Lit Venues132
4.1 New Venues versus Established Exchanges138
5 Increased Competition: Fragmentaon across Lit and Non-Lit Venues142
 
6 Order Execution in a Fragmented World147
6.1 Average Trade Size147
6.2 The Role of High Frequency Trading in Fragmenting European Liquidity151
6.3 Does Fragmentation Provide Better Execution?152
7 Dark versus Lit Liquidity155
7.1 Impact on Price Formation160
8 The Consolidated Tape161
8.1 Pre-Trade Considerations161
8.2 The Post-Trade Issue163
8.3 A Simple Solution164
9 The New Liquidity Landscape and the Shape of Things to Come165
10 Conclusions167
Appendix168
Ch.5 THE QUALITY OF EUROPEAN EQUITY MARKETS AFTER MiFID - Peter Gomber, Markus Gsell and Marco Lutat171
1 Introduction171
2 Fragmentation of Liquidity172
2.1 How MiFID Drives Fragmentation172
2.2 Liquidity and Cost of Capital174
3 Impact of Fragmented Liquidity on Market Quality: Empirical Analysis174
3.1 Methodology175
3.1.1 Data Aggregation175
3.1.2 Regression Model176
3.2 Observation Periods177
3.3 Sample178
3.4 Results181
4 Market Integrity - Price Manipulal ion at the Close: Empirical Analysis186
4.1 Methodology186
4.2 Samples and Observation Periods187
4.3 Results187
5 Conclusion I Policy Implications for Issuers188
References190
Ch.6 THE EMERGING LANDSCAPE OF THE EUROPEAN POST-TRADING INDUSTRY - Peter Gomber and Torsten Schaper193
1 Introduction193
2 Interests of Issuers in the European Post-Trading System194
3 The European Post-Trading Landscape197
3.1 The Post-Trading Value Chain197
3.2 Post-Trading Functions and Institutions198
3.3 Business Models in European Post-Trading201
3.4 Regulation and Market Initiatives in European Post-Trading203
4 Evaluation of Post-Trading Projects from the Perspective of the Issuers211
4.1 Evaluation of Regulation212
4.1.1 MiFID and Further EU Regulatory Initiatives212
4.1.2 European Code of Conduct for Clearing and Settlement213
4.2 Evaluation of Technical Platforms214
4.2.1 T2S214
4.2.2 Link Up Markets216
4.2.3 SSE/ESES216
4.2.4 CCBM2217
5 Summary and Outlook217
References218
Ch.7 THE ISSUERS PERSPECTIVE ON POST-TRADING BARRIERS - Peter Gomber and Torsten Schaper223
1 Introduction223
2 Barriers for Issuers in European Post-Trading224
2.1 Shareholder Visibility Issues based on Legal Barriers228
2.2 Shareholder Visibility Issues Based on Differences in Market Practice and Technical Barriers230
3 Case Study on Issuers in European Post-Trading231
3.1 Research Approach231
3.2 Results of Issuers Cases232
4 Case Study on Technical Infrastructures that Aim to Improve European Post-Trading236
4.1 Research Approach236
4.2 Results of Technical Infrastructures Cases237
4.3 Proposal on Shareholder Visibility240
5 Conclusions242
References243
Ch.8 SHAREHOLDER IDENTIFICATION AND CORPORATE ACTION IN EUROPE - Valter Lazzari, Giuseppe Lazzari e Mario Maglione245
1 Introduction245
2 Alternative Legal Framework of Stock Ownership248
2.1 Type of Common Stocks: Bearer Stocks vs. Registered Stocks248
2.2 Transferring Stock Ownerships251
2.3 Updating the Shareholder Register255
2.3.1 The Timing of the Registration255
2.3.2 The Content of the Registration258
3 Shareholder Transparency and the Execution of Corporate Actions258
4 Distributions262
5 Mandatory Reorganization with Options263
6 Shareholders Meetings264
7 Towards the European Standards269
8 Summary and Conclusions274
AUTHORS277