The short selling regulation of 2005 (regulation SHO), and its more restrictive version of 2008, was put in place to curb potentially manipulative naked short selling. However, this regulation has been criticized in the literature for reducing market quality. Contrary to other findings, I show...

The current SEC regulation section 13(f) allows financial institutions to delay the disclosure of their quarter-end stock holdings up to 45 days. Motivated by a recent regulatory debate about the appropriate length of delay for disclosures, I develop a model to examine a financial institution's...

We present the "Tax Day Trade," a one day trade that gains an average of 1/2%. The trade was developed using the "Strategic Analysis of Markets Method (SAMM)" described in the two volume series "The Strategic Analysis of Financial Markets" (forthcoming from World Scientific). Detective work...

Legislators, regulators, and academics are insisting that the brokerage industry unbundle by separating investment research fees from trading. They also want to foster market efficiency. These two positions are at odds unless investment research is subsidized

With the introduction of the High Frequency Trading (HFT) Act in May 2013, Germany has become the first country that regulates securities trading firms based on their infrastructure and order book activity characteristics. In order to increase the transparency of HFT firms and to facilitate...

This paper studies the impact of contracted market makers by investigating the liquidity provider scheme in Sweden. The results show that the stocks become more liquid after the introduction of the contracted market makers. The liquidity improvement is explained by reduced order processing cost...

We study options market participants’ trading behavior before and after the options multiplier increases. After the options multiplier increases, the options market becomes more efficient. By analyzing the high-frequency microstructure dataset, we show that local retail and local institutional...

We explore how disclosure requirements that regulate the release of new information may affect the dynamics of financial markets. Our analysis is based on three agentbased financial market models that are able to produce realistic financial market dynamics. We discover that the average deviation...

We examine the effects of the short selling ban, imposed by Australian regulators in the wake of the global financial crisis, on trading of financial stocks. Unlike other developed markets, where regulators imposed short-selling restrictions for brief periods of time at the height of the...

Market integrity, market efficiency, and market accuracy are related, but distinctly different concepts which are often misunderstood or misused in public policy debates, especially with regard to corporate takeovers and corporate governance issues. This paper discusses the differences in these...