Essays on the Regulation and Microstructure of Equity Markets
08 / 2006 - 03 / 2011
Essays on the Regulation and Microstructure of Equity Markets is a collection of three studies on financial markets regulation, more specifically insider trading regulation, and market microstructure, which is an area of research that deals with liquidity and information asymmetry. The first essay analyzes the information content of legal trades by corporate insiders in the Netherlands, with an emphasis on the implementation of the Market Abuse Directive (European Union Directive 2003/6/EC), which strengthens the existing regulation concerning insider trading. This new regulation is further analyzed in the second essay of this thesis (Chapter 3), where the author focuses on the impact of the Directive with respect to stock market liquidity and information asymmetry. Finally, the third essay (Chapter 4) tackles the issue of market fragmentation by analyzing the liquidity impact of block trades, which are trades in shares that use different trading rules than normal trades.