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Full-Text Articles in Law
Evaluating Stock-Trading Practices And Their Regulation, Merritt B. Fox, Kevin S. Haeberle
Evaluating Stock-Trading Practices And Their Regulation, Merritt B. Fox, Kevin S. Haeberle
Faculty Scholarship
High-frequency trading, dark pools, and the practices associated with them have come under tremendous scrutiny lately, giving rise to much hot rhetoric. Missing from the discussion, however, is a principled, comprehensive standard for evaluating such practices and the law that governs them. This Article fills that gap by providing a general framework for making serious normative judgments about stock-trading behavior and its regulation. In particular, we argue that such practices and laws should be evaluated with an eye to the secondary trading market’s impact on four main aspects of our economy: the use of existing productive capacity, the allocation of …
Stock Market Futurism, Merritt B. Fox, Gabriel Rauterberg
Stock Market Futurism, Merritt B. Fox, Gabriel Rauterberg
Faculty Scholarship
The U.S. stock market is undergoing extraordinary upheaval. The approval of the application of the Investors Exchange (IEX) to become the nation’s newest stock exchange, including its famous “speed bump,” was one of the SEC’s most controversial decisions in decades. Other exchanges have proposed a raft of new innovations in its wake. This evolving equity market is a critical piece of national infrastructure, but the regulatory scheme for its institutions is increasingly frayed. In particular, current regulation draws sharp distinctions among different kinds of markets for trading stocks, treating stock exchanges as self-regulatory organizations immune from private civil litigation, while …