Essay代写：Stock market reform in the United States－r51due

下面为大家整理一篇优秀的essay代写范文- Stock market reform in the United States，供大家参考学习，这篇论文讨论了美国的股票市场改革。经过长达一年半的艰苦努力，美国证监会主席威廉·唐纳森推行的美国股票市场改革终于通过了，新的全国市场系统监管条例反映了证监会寻求更加积极主动进行市场监管、推进股票交易进一步电子化的努力。新监管规则核心是，市场要给股票投资者提供全部市场上的最佳价格，或使交易转移到能提供更好价格的市场上完成。

After a year and a half of hard work, William Donaldson, chairman of the securities and exchange commission, has finally begun to reform the American stock market.

On April 7th the securities and exchange commission (SEC) voted 3-2 to approve the national market system regulation bill introduced last February. The new rules reflect the CSRC's efforts to take a more proactive approach to market regulation and push stock trading further electronic.

At the heart of the new rules is a market that offers stock investors the best prices in all markets, or moves trades to markets that offer better prices. Currently, only the New York stock exchange offers trading protection, neither nasdaq nor insider trading - trades made by brokers among their own clients.

The CSRC's market regulator estimates that one in 40 trades on the nasdaq were made at sub-optimal prices; One in 30 insider trades. That means 98,000 trades a day at sub-optimal prices on nasdaq alone.

The passage of the new rules is considered the "most profound" change to the national market system in the 30 years since congress created it.

In his comments to the SFC meeting that day, donaldson called on people not to "adopt a resistance approach" to reform. He stresses that inaction and reform are easiest for the SEC, nyse and nasdaq; But the only victims are investors.

The SFC reform will be implemented gradually and will also provide guidance to stock exchanges. Implementation of the rules began on April 10, 2006. The move will involve 100 stocks on the nyse and nasdaq, and 50 on the American stock exchange. The pilot will run until June 9, 2006, and full implementation will begin on June 12, 2006.

Passing the reform will not be easy. Many large institutional investors, including fidelity investment funds, have strongly objected. They claim this regulatory approach prevents them from completing large and complex transactions more quickly. Many large investors worry that forcing them to trade in markets that offer the best prices will slow down big deals significantly.

In the face of these concerns, the CSRC in its final revision limited trading protection to electronic trading and did not include manual trading in the new system. That means trading won't be shifted to the nyse's slow manual trading system because of price.

Typically, a human transaction can take 30 seconds to complete. Since market prices can change at any time between the issuance of trading orders and the closing of transactions, the CSRC does not require the implementation of trade protection in manual trading.

Even within the SEC, opposition to reform was once strong, involving two of its five commissioners. Among them, Paul Atkins said at a conference on April 6th: "most people at the SEC, in the name of retail investors, decided to sacrifice market efficiency in order to regulate competition and set prices."

Opponents argue that the reform focuses too much on price and ignores the importance of the non-monetary form of competition-speed competition. Because there are large, complex transactions that want to be done quickly, the search for the best price slows down the speed and efficiency. Mr Atkins argues that forcing investors to pursue only the best prices leads to a centralised market structure that is "detrimental to the forces of competition and innovation".

He cited the previous commission's reluctance to move towards a more centralised system, adding that "the present commission will certainly learn from its own mistakes".

Republicans in congress, including Richard baker, chairman of the house subcommittee on capital markets, also strongly oppose the reforms. Baker called the reforms "horrible steps to make our free market system less free." He and several other members of congress have threatened to introduce a bill in congress to repeal the new reforms.

Mr Donaldson, chairman of the securities and exchange commission, is an advocate and staunch supporter of reform. 'the main goal of regulation is to help smaller investors,' he said. Big institutional investors have the means to trade in their chosen markets, while small investors may be forced to accept second-best prices from their brokers.

Mr Donaldson worries that smaller investors often have problems with "how to monitor their traders"; there is enough incentive for traders to trade at the best price against the interests of their investors.

This is a legitimate concern, especially for small investors, who have an incentive to build better relationships with other traders rather than small investors, since they interact less often than with other traders. "The interests of agents and their clients are often in conflict. Brokers can have a strong financial incentive to complete orders in a particular market, even if prices are lower there." Donaldson says,

Brokers are now bound by best practice duties. That means they should act in the best interests of their customers. But monitoring such individual trades in a market of tens of millions of dollars a day is actually extremely difficult. Mr Donaldson believes the new rules will support the same principle at the macro market level.

Many in the market also welcomed the change, including the investment company institute. This is an institution that represents 95% of mutual fund assets in the United States.

According to the SEC, the benefits of this reform are clear. The one-time cost of setting up the policies and procedures is $144 million, with annual fees estimated at $22 million, while investors will gain $321 million a year from the reforms -- $209 million from nasdaq and $112 million from nyse, estimates market regulation director anai natzaris.

In the end, the reform was carried out largely because of the necessary technical conditions provided by electronic transactions. The new rules, in turn, will boost electronic trading.

The securities and exchange commission's reforms in recent years have forced an increasing share of stock trading to go electronic. At a public hearing in April 2004, both the New York stock exchange and the American stock exchange announced plans to significantly increase their electronic trading volumes.

Under pressure and incentives from the SEC and new trading rules, the nyse is already preparing to increase its share of electronic trading. This may be the most important long-term impact of the reform - the transition to a fully electronic trading system.

For now, the nyse insists it will keep trading by hand, but that old practice seems to be fading. But it is still too early to go entirely electronic. The New York stock exchange, which now accounts for 80 per cent of trading volume in the us, has gone electronic only 10 per cent of the time.

The nyse has changed the original intention of against the new rule, and vote in the securities and futures commission, said in a statement soon after the reform "for investors and the market is a big step forward, for all the people in a fair and impartial platform, for the securities market in the United States, competition and maintain the growth of the world's best provides a reasonable framework."

The nyse plans to expand its "direct+" trading system to promote more electronic transactions to take advantage of new trading rules. Nyse has more trading volume than nasdaq, making it more likely that its shares will trade at a higher price than nasdaq's share price, allowing it to attract more trading volume and further expand its market share.

A nasdaq spokesman told the magazine: "although we have a highly effective electronic market, the nasdaq didn't feel the need to apply the new trading rules, but we are very glad to see that the new rules will force artificial market follows the rise since 1971, the nasdaq automation market road." In any case, the impact on the structure of the market is already being felt.

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