Chapter 19: The Regulatory Environment
What we will cover in this chapter
- While we spend a great deal of time looking at the potential of various markets, the regulatory environment in which we are forced to perform has a significant effect on the decisions of investors and therefore is worthy of consideration.
- More regulation does not mean better regulation. All rules should pass the basic test of whether they support the capital formation raison d’etre of markets.
- In the coming decades potential changes in how the regulation of high frequency trading, the size of the banking sector, client monies and lobbying could have outsized effects on financial markets.
TO THE EXTENT that monetary policy controls the amount and cost of money, ...