1

Span of Regulation

In this book, we define the span of regulation as the breadth of coverage. This means the entity, state or province, country, or supranational group that is subject to the regulation.

Regulation in the trading markets began as early as trading began, as we have noted. Early markets developed rules to govern members and to protect one another from the excesses and weaknesses of other members. Beyond rules to protect the markets, further layers of regulations have evolved usually in response to scandals and financial panics as markets developed and became more important to national economies.

Now, as national economies are becoming interdependent, regulation will have to find a way to respond. As Figure 4.1 shows, the span ...

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