1 / 8

Transparency by Pagano comments from J ens Henriksson, President NASDAQ OMX Stockholm

Transparency by Pagano comments from J ens Henriksson, President NASDAQ OMX Stockholm. transparency What an exchange is really about!. Pre- and post-trade transparency. Issuer non-disclosure. Opaque trading. Issuer transparency.

italia
Télécharger la présentation

Transparency by Pagano comments from J ens Henriksson, President NASDAQ OMX Stockholm

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Transparency by Paganocomments fromJens Henriksson, President NASDAQ OMX Stockholm

  2. transparencyWhat an exchange is really about! • Pre- and post-tradetransparency • Issuernon-disclosure • Opaquetrading • Issuertransparency • The exchange is the place where demand and supply of capital meet in an efficient and stable way. • Support growth of companies and the economy, create jobs. • We love transparency!

  3. And so does the leaders of the world!!

  4. When should we not have full transparency? • Transparency is the starting point • - Market integrity • Sometransactionsneed to be less transparent • - Waivers from pre-tradetransparency • - Delayedpost-tradepublication • Largetransactions • - Equity. • - Non-equity Swedish bond market • BUT! Exemptionsneed to be clear and harmonised

  5. WHEN SHOULD WE QUESTION Asset Transparency ? • Focus both on INVESTOR and COMPANY perspective. Not always the same… • Issuers are diverse • - Size, complexity, maturity, business model, companygroups • - Main market + First North (equities, and bonds?) • Transparencymay be betterthandetailedlegislation •  CorporateGovernance in principles-basedcodes + comply or explain

  6. Comments onTransparency • Similarto Kay review – but it focused on effeciency; from a trading perspective and a governanceperspective. • ”A largeliterature shows thathigherliquidity is associatedwith … a lowercost of capitaltofirms” • ”Whyare markets so opaque?... in manycases [intermediaries] own the platforms… Opaqueplatformsaremoreresilienttocompetition.” • Gomber and Pieron ”However, ouranalysisof individual OTC trade size data between January 2008 and April 2010 both for high liquids (EURO STOXX 50 constituents) and a sample of less liquid securities shows that a significant share of OTC transactions are neither above SMS nor would they face market impact if concluded on open, public order books.”

  7. Comments onTransparency • ”the faster information gets impounded in market prices: betterpricediscovery.” • ”Market platforms… are not interested in making information about the trading process availablequickly and for free.” • Weareinterested! But no incomes, no speed, and in the long run: no markets. • Three reasons” for opacity: Compliance. Tax. Information processing. • Morereasons: Fraud. Business secrets. Public anger…. • ”Information processingcosts.” • Has anybody read a wholeprospect? The fine print?

  8. All in all. A VERY GOOD PAPER!

More Related