The current state of Asia-Pacific stock exchanges: A critical review of market design [An article from: Pacific-Basin Finance Journal]

This digital document is a journal article from Pacific-Basin Finance Journal, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
This paper provides a review of the market microstructure of ten Asia-Pacific stock exchanges. Asia-Pacific stock exchanges face significant challenges in an increasingly global and competitive world equity market. These exchanges need to provide an efficient, fair and competitive trading environment if they are to attract new listings and attract investors. This paper documents significant differences in market design across Asia-Pacific stock exchanges. Many of these design features are at odds with the existing microstructure research. Achieving competitive markets may involve a review of market design and regional consolidation. Failure to increase attractiveness may result in Asia-Pacific exchanges losing market share in the global equity market. A review of current best practice in a number of critical microstructure areas is useful for market organizers to assist in policy development, is helpful for academics wishing to undertake empirical research in these markets and is a source for future research ideas.