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

Abstract

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.     

Space,scale and jurisdiction in health service provision for drug users: the legal geography of a supervised injecting facility

Sydney's Medically Supervised Injecting Centre delivers the significant benefits of harm reduction, but has been controversial regards the law. Its contested history is examined here through the lens of legal geography. Narrative analysis reveals that the arguments for and against the centre's establishment referenced matters ranging from international treaties through to municipal governance. These arguments and their outcome were variously shaped by the different spaces and scales of jurisdiction but not simply in a zero sum game of law played out through the hierarchically ordered nesting of container-like territories. The implications for legal geography and for public health are discussed.     

Online collaboration as a pedagogical approach to learning and teaching undergraduate legal education

Legal education is in a period of rapid development driven by changing industry demands and developing technologies. This paper will describe an innovative pilot study which utilises new technologies to provide an alternative mode of teaching and learning to meet growing industry demands for graduates who are technologically savvy and have strong communication and collaboration skills. The pilot study redesigns a law unit combining a more traditional approach with an approach in which online collaboration is critical to student learning as a teaching and assessment tool. After completing an online collaborative activity as part of their assessment for the unit, students completed an online survey to identify their perspectives of the online collaborative experience. The online survey data was analysed to identify common themes and the experiences of students are shared in this paper. The paper provides an example of how instructors might take advantage of a learning design process, online tools and infrastructure to develop educational experiences which promote communication and collaboration within the law discipline. It will also include five recommendations to consider when including online collaboration in unit design for law students.     

Selling stolen goods on the online markets: an explorative study

Historically, criminologists studied theft from different perspectives, but only a few focused their attention on the reselling of stolen items. The advent of the Internet has boosted stolen good markets by facilitating interactions between vendors (thieves and receivers) and buyers. This study, based on 227 cases reported by news sites in 2015 and 2016, focuses on the markets and methods used to sell stolen goods online. The results suggest that the online selling methods are quite independent from existing offline methods. The findings innovate with respect to the typology provided by Sutton. The online markets for stolen goods are rather a new environment where perpetrators may choose among several methods of disposal. The results reflect a preference for resale through classified ads sites (44.24%), auction sale sites (28.11%) and social media (19.35%). In the light of this study, more research is needed to understand online stolen goods markets and their mechanisms.     

Understanding markers of trust within the online stolen data market: An examination of vendors’ signaling behaviors relative to product price point

Research Summary

The current study examined 1055 stolen data products across 40 vendors on the Open and Dark Web to determine whether different product- and vendor-level behaviors predicted vendors’ trustworthiness as reflected in their product price point. Understanding the mechanisms that convey trust in the underground marketplace is crucial as it could help law enforcement target serious actors and disrupt the larger marketplace. Findings suggest the online stolen data market may resemble an uninformative cost condition where buyers are unable to accurately differentiate credible sellers due to the obscure nature of signaling behaviors.

Policy Implications

Law enforcement would benefit from designing fake shops and deceptive forum posts that transmit mixed signals to complicate market participants’ process of interpreting trust signals as intended. These interventions would generate high levels of risk that encourage both buyers and sellers to exit the online illicit marketplace without needing law enforcement arrests. Law enforcement could also target prominent market facilitators to generate a larger disruption that prevents actors from continuing their illicit behavior.