The (revised) future of financial markets

Abstract

Purpose

The purpose of this paper is to evaluate recent financial system reforms in the USA by placing them in the context of major structural trends currently underway in the markets, due to technology and globalization of trading.

Design/methodology/approach

The paper describes trends underway in markets and examines how the new rules recently agreed to in the USA and among regulators globally will bear on them.

Findings

The paper finds that the financial system reforms in the USA can be expected to have modest beneficial effects in terms of making markets more robust and efficient, and that key trends affecting markets need to be taken into account as regulators implement the new rules and evaluate the need for future amendments. Our findings imply that regulators should be willing to closely monitor the reforms and adjust them quickly as needed.

Originality/value

This article adds the perspective of interacting key secular trends in the structure of the banking and financial system with the latest regulatory initiatives.

Citation

Bennett, P. (2011), "The (revised) future of financial markets", Journal of Financial Economic Policy, Vol. 3 No. 2, pp. 109-122. https://doi.org/10.1108/17576381111133598