Introduction and Overview

Abstract

A key component of the infrastructure of global capital markets—exchanges—has undergone dramatic transformations since the start of the twenty-first century. Two are particularly notable. First, traditional floor trading and ‘market-making’ by humans have been replaced by supercomputer interactions and algorithmic high-speed trading. And, second, previously centralized domestic exchange structures have become decentralized or fragmented, with many exchanges and alternative trading platforms competing for business. This chapter introduces a unique set of chapters by leading scholars, industry insiders, and regulators shedding light on how these changes have impacted on core public policy objectives such as investor protection, reduction of systemic risk, fairness, efficiency, and transparency in markets for the benefit of society at large.