Understanding Financial Market Effectiveness: New Approaches


February 19th 2016 to February 20th 2016

Venue: Room 9.04, Tower 2, LSE
Speakers: Matteo Aquilina (FCA), Guillaume Bazot (PSE), Eric Budish (Chicago), Peter Cramton (University of Maryland), Robin Finer (FCA), Kevin R. James (FCA, SRC, FMG, LSE), John Kay (FT and LSE), Akshay Kotak (Oxford), John Shim (Chicago), Joe Stiglitz (Columbia), James Sweeney (CSFB), Dimitri Tsomocos (Oxford), Diego Valiante (CEPS) and Luigi Zingales (Chicago).
Organisers: Kevin R. James (FCA, SRC, FMG, LSE), Jon Danielsson (SRC, LSE) and Charles Goodhart (SRC, FMG, LSE).

Effective financial markets - markets that work well from the perspective of people and firms in the non-financial sector - can significantly enhance the stability, prosperity, and dynamism of an economy. 
In this conference we explore four key aspects of financial market effectiveness to improve our understanding of what makes markets effective and to investigate the role that financial regulation can play in bringing effective financial markets about. 
We focus on:
  • The social cost of running efficient financial markets
  • The long run performance of the financial system (cost, stability, growth)
  • The impact of competition on market effectiveness
  • Understanding the role of market based-finance in the emerging financial system
Download the final programme.
Conference video: In this video, participants, including Nobel Laureate Joseph Stiglitz, academic and Financial Times columnist John Kay and University of Chicago Finance Professor Luigi Zingales, discuss new approaches to understanding the effectiveness of financial markets.
Presentation slides:
Eric Budish (Chicago), Peter Cramton (U. of Maryland), and John Shim (Chicago). A Market Design Approach to the HFT Debate
Kevin R. James (LSE, FCA), Akshay Kotak (Oxford), and Dimitri Tsomocos (Oxford). Corporate Governance, Financial Crises, and TFP Growth in the US: 1840 – 2014
Luigi Zingales (Chicago). Does Finance Benefit Society?

The event is jointly organised with the Financial Conduct Authority and Financial Markets Group.