Handbook of Safeguarding Global Financial Stability

Chapter 37

Market Structures and Market Abuse^*

K. Alexander*,^†

^*University of Zurich, Zurich, Switzerland

^†University of Cambridge, Cambridge, UK

Outline

Introduction

Regulatory Rationale of Market Abuse Laws

Market Developments: Technology and Regulation

United Kingdom’s Market Abuse Regulation and Markets

Advanced Trading Techniques and Market Abuse

Reforming the EU MAD

Conclusion

Glossary

Further Reading

Introduction

The global financial crisis has raised important questions about the role of regulation in reducing and controlling excessive risk taking. Prior to the crisis, innovation in financial products led to the creation of credit-linked instruments that generated high levels of leverage, which put the financial system at great risk. ...