Nearly every trading market in the world has at least one and sometimes several national regulators. A few markets have no regulator because of tradition or, more frequently, because the market spans several national boundaries. Often when nations compete for control of a market, the result is little or no regulation. Even in markets with little governmental regulation, the market participants regulate themselves formally or informally. Figure 1.5 identifies regulators in the trading markets.
Figure 1.5 Regulators supervise markets for governments and/or for market participants.
Unregulated markets depend on collective ...