Practical analysis for investment professionals

financial regulation


Government Influence: Spurring and Stalling Fintech

Fintech is forcing official policy makers to weigh the interests of consumers and corporations, while balancing the need for innovation and protection, in rewriting government rules and operating methods, Joshua Bateman, CAIA, CFA, reports.

MiFID II: What’s Wrong with It?

Regulators should be alert to any emerging systemic risks encouraged by the implementation of MiFID II. Its problems may surface more quickly than the benefits, asserts Colin McLean, FSIP.

Book Review: Phishing for Phools

The “invisible hand” of the free market can hurt as well as help participants. The authors, who are Nobel Prize–winning economists, argue that as long as there is profit to be made, sellers will exploit our psychological and behavioral weaknesses through manipulation and deception.

Book Review: The Handbook of Market Design

This handbook provides an insightful set of articles on the impact of economics and game theory on the development of structures to solve market design problems. Bringing together the latest research in this growing field, the editors provide a detailed overview on how market mechanisms can be used to solve problems of matching and exchange.

Asset Managers Pose Systemic Risk — It’s Time To Recognize It

Now that the world's largest asset manager manages considerably more money than the world's largest bank, it's time to think about the potential for systemic risk.

Book Review: The Lunacy of Modern Finance Theory and Regulation

The author identifies some interesting conundrums related to financial theory and lodges a number of valid criticisms of financial industry practices. He also criticizes existing laws and rules because they did not prevent the global financial crisis of 2008–2009.

Shadow Banking Is Hurting China’s Banks — And That’s a Good Thing

No doubt shadow banking in China is large (30% of total banking assets, according to JPMorgan’s estimates) and carries unknown risks. But China’s problem is not shadow banking itself, it is a dysfunctional credit system.

The Case for Financial Sector Liberalization in China

Although China is transitioning toward a capitalist system, SOEs continue to play an important part in China’s economic development. The involvement of SOEs has led to very little progress in the financial markets, which, in turn, has caused distortions in the allocation of capital to unproductive industries.

IPOs, Regulation, and Exchange Liquidity: Views from Vienna (Video)

In this short video interview, Michael Buhl, shares the perspective of the Vienna Stock Exchange on issues concerning initial public offerings, regulatory developments, dark pools, and high-frequency trading.

Paul Druckman on ‹IR›: Concise Integrated Reporting is Key to Good Investor Relations

Traditional corporate reporting has been the subject of much criticism, as it has not really been effectively and efficiently communicating the current conditions, issues, and outlook of a corporation's business with shareholders, creditors, and other stakeholders. A different approach — integrated reporting — has been designed to fill the gap, and a global movement is underway to make the norm.