Achieving Market Integration

Best Execution, Fragmentation and the Free Flow of Capital


  • Scott McCleskey, virt-x Exchange Limited, UK

Best execution, market integration, and other major financial market issues have traditionally been dealt with as separate matters requiring individual solutions. In Achieving Market Integration the author demonstrates the interrelated nature of these and other imperative problems, and sensibly reduces them to their common fundamental principles. Beginning with an in-depth examination of best execution in today's multiple-market environment, the book moves logically into an examination of market structure and the problems of achieving genuine integration. The book makes the case that order interaction is fundamental to addressing each of these issues, and develops a unified regulatory approach to achieve true market integration based on intermarket linkages and a cross-market best execution policy. This unique approach culminates in a coherent set of policy recommendations and an innovative framework for assessing the effectiveness of future policy proposals.
View full description


Investment bank brokers; Operations managers; Graduate trainees; Business analysts; Finance managers; Regulatory bodies- policy experts; Clearing houses and central securities depositories;


Book information

  • Published: November 2003
  • ISBN: 978-0-7506-5745-7


"A thorough and robust critique of the challenges facing European financial services policy makers as they pursue their mission for an integrated securities market." Lee Hodgkinson, Member of the Management Board, SWX Swiss Exchange

Table of Contents

Best Execution: Is this regulation necessary?; Fundamental issues; Putting it together- Elements of a sound best execution policy; Comparing approaches; A legal approach; Technological considerations; Market Integration: Liquidity, Market Fragmentation and Price Formation; Fragmentation and Concentration; Clearing and Settlement; Old Solutions to New Problems- Historical Attempts to Integrate Markets; Making Integration Work- The European Case; Making Market Integration Work: State vs. Market- Who regulates the integrated market?; Conclusions.