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Where do electronic markets come from? Regulation and the transformation of financial exchanges

Castelle, M., Millo, Y., Beunza, D. ORCID: 0000-0003-0164-7095 and Lubin, D. C. (2016). Where do electronic markets come from? Regulation and the transformation of financial exchanges. Economy and Society, 45(2), pp. 166-200. doi: 10.1080/03085147.2016.1213985

Abstract

The practices of high-frequency trading (HFT) are dependent on automated financial markets, especially those produced by securities exchanges electronically interconnected with competing exchanges. How did this infrastructural and organizational state of affairs come to be? Employing the conceptual distinction between fixed-role and switch-role markets, we analyse the discourse surrounding the design and eventual approval of the Securities and Exchange Commission’s Regulation of Exchanges and Alternative Trading Systems (Reg ATS). We find that the disruption of the exchange industry at the hands of automated markets was produced through an interweaving of both technological and political change. This processual redefinition of the ‘exchange’, in addition, may provide a suggestive precedent for understanding contemporary regulatory crises generated by other digital marketplace platforms.

Publication Type: Article
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in Economy and Society on 26 Sep 2016, available online: http://www.tandfonline.com/10.1080/03085147.2016.1213985
Publisher Keywords: financial markets, production markets, regulation, stock exchanges, technology, marketplace platforms
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
Departments: Cass Business School > Management
URI: http://openaccess.city.ac.uk/id/eprint/21122
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