Video: The Biggest Issues Facing Securities Markets in the 21st Century

An esteemed panel of regulators, scholars, and lawyers gathered at Columbia Law School on March 29 to discuss Securities Market Issues for the 21st Century, a new e-book on the most important areas of inquiry for securities regulation and the financial markets. The book marks the culmination of the first phase in a multi-year New Special Study of the securities markets being conducted by the Program in the Law and Economics of Capital Markets, a joint initiative of Columbia Law School and Columbia Business School. The study is the first of its kind in more than five decades … Read more

Columbia Launches New Special Study of Securities Markets

Over the last three decades, U.S. and global securities markets have undergone tremendous change, driven by globalization, advances in information technology, and regulatory choices at the federal and international levels. The days of adventuresome floor trading and concerns of safeguarding ink-and-paper securities have given way to electronic order books within a multi-venue exchange system and to concerns about safeguarding interconnected global trade networks lead by SIFI’s. Artificial intelligence systems and distributed ledger technologies on the horizon have further potential to disrupt the landscape.

Markets today are dramatically different from those of 30 or 50 years ago, and a new comprehensive … Read more

The New Stock Market: Sense and Nonsense

Over the last few decades, how stocks are traded in the United States has been totally transformed. Gone are the dealers on NASDAQ and the specialists at the NYSE. Instead, a company’s stock can now be traded electronically on up to sixty competing venues where a computer matches incoming orders. A majority of quotes are now posted by high-frequency traders (HFTs), making them the market makers that are the preponderant source of liquidity in the new market.

This new stock market has spawned a bewildering number of controversies. From the quoting practices of HFTs, to the rise of so-called dark … Read more