U.S. Securities Regulation in a World of Global Exchanges

U.S. Securities Regulation in a World of Global Exchanges

Reena Aggarwal, Allen Ferrell, Jonathan Katz

Series number :

Serial Number: 

Date posted :

December 01 2006

Last revised :

SSRN Share


  • Stock exchange mergers • 
  • NYSE • 
  • Euronext • 
  • Sarbanes-Oxley • 
  • Cross-listing • 
  • demutualization • 
  • stock exchanges • 
  • SRO.

Recently there has been a dramatic change in the organizational structure of exchanges as they have demutualized and converted into for-profit entities. This has been accompanied by a public listing of shares on the exchange itself. These changes have been driven by technological and competitive forces and have resulted in a new paradigm for the governance of exchanges.

The new organizational structure has raised several regulatory issues. At the same time that exchanges have themselves become public companies, there have also been major changes in the governance requirements of listed companies that trade on exchanges. Many of these changes have been prompted by the Sarbanes-Oxley legislation, new exchange regulations, and changes mandated by the SEC. The new requirements have impacted the capital raising process globally and the choice of listing venue. These developments have in turn intensified competition among exchanges and may lead to a wave of cross-border consolidations. Globalization of exchanges will create challenges for nation-based regulation and we offer some suggestions for resolving the regulatory impediments.

Published in

Published in: 
Exchanges: Challenges and Implications, Euromoney, 2007 | Harvard Law and Economics Discussion Paper No. 569


Real name:
Jonathan Katz