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Where do electronic markets come from? Regulation and the transformation of financial exchanges

Castelle, Michael, Millo, Yuval, Beunza, Daniel and Lubin, David C. (2016) Where do electronic markets come from? Regulation and the transformation of financial exchanges. Economy and Society, 45 (2). pp. 166-200. ISSN 0308-5147

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Identification Number: 10.1080/03085147.2016.1213985


The practices of high-frequency trading (HFT) are dependent on automated financial markets, especially those produced by securities exchanges electronically interconnected with competing exchanges. How did this infrastructural and organizational state of affairs come to be? Employing the conceptual distinction between fixed-role and switch-role markets, we analyse the discourse surrounding the design and eventual approval of the Securities and Exchange Commission’s Regulation of Exchanges and Alternative Trading Systems (Reg ATS). We find that the disruption of the exchange industry at the hands of automated markets was produced through an interweaving of both technological and political change. This processual redefinition of the ‘exchange’, in addition, may provide a suggestive precedent for understanding contemporary regulatory crises generated by other digital marketplace platforms.

Item Type: Article
Official URL:
Additional Information: © 2016 Informa UK Limited, trading as Taylor & Francis Group
Divisions: Management
Subjects: H Social Sciences > HG Finance
Date Deposited: 19 Dec 2016 14:57
Last Modified: 20 Oct 2021 02:26

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