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Title: European Capital Market Integration: What have been the obstacles and what are the remaining barriers to the achievement of a European Single Capital Market?
Author: Xyggi, Adamantia
ISNI:       0000 0001 3574 012X
Awarding Body: University of Sussex
Current Institution: University of Sussex
Date of Award: 2008
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This thesis examines the remaining barriers for regulatory and market integration through the lens of two alternative approaches: the Public Interest and the Public Choice approach. The first chapter explains the problematique of this thesis, defines the core questions and sets out the related questions. It also provides background information on the internationalisation of the financial sector and discusses the latest regulatory developments occurring in Europe focusing on the Lamfalussy Process that governs the capital market and particularly the securities markets. It goes on to define the aim of this research and its objectives and to present the outline of the thesis and the conceptual framework employed to approach the subject. Finally, this chapter reviews the literature on the subject and clarifies the contribution of this thesis to existing knowledge. The second chapter refers to the conceptual framework used in this thesis to analyse the regulatory changes and their impact on capital market. This framework builds around the comparison of public interest and public choice models and provides a considerable body of theoretical evidence that identifies and associates rationality with both public and self-interests according to which the two models are not mutually exclusive, can co-exist and even work together. Since RCT applies to both non market and market decisions, the two models, welfare and strategic, develop on two levels: the regulatory and institutional rationality level which covers legal and regulatory decisions (in this thesis EU directives) and the market rationality level, which covers market decisions (in this thesis stock exchanges' consolidation). The third chapter constitutes the primary research and empirical work, making up the first original contribution of this thesis. This chapter is based on textual analysis of the most important directives in the area (Prospectus, Market Abuse and Investment Services), including use of press clippings, published sources, classified archives and qualitative interviews. The latter are conducted with Baron Lamfalussy and with officials of the European Commission. This chapter consists of three parts. The first part refers to the directives included in the FSAP that replaced earlier directives according to the Lamfalussy Process. The second part refers to the Takeover Directive, which, while not included in the Lamfalussy Process is included in this discussion because the market for corporate control is connected with capital market since it depends on the latter's depth and liquidity, and also because it provides evidence of the involvement of domestic interest groups and the sponsoring states in the regulatory reform. The third part compares and contrasts the evidence from the .two previous different but interdependent parts and draws some preliminary concluding remarks. The fourth chapter refers to the analysis of interview material on opinions and perceptions of market and institutional actors on the issues traced in the third chapter. These interviews are conducted with senior executives of European Associations and Federations Eu , ropean regulators, and academics. The views of Baron Lamfalussy and EC officials, collected thr ough the respective interviews, are also presented in this chapter. The fifth chapter, which constitutes the market rationality level, refers to the consolidation of European exchanges, which, as seen in the third chapter, are highly affected by the new directives since the latter intensify the competition not only b~tween exchanges but also between exchanges and alternative trading systems. This chapter makes up the second original contribution of this thesis since it investigates how far the actions of the newly commercialised exchanges comply with changes in regulation and interact with integration. The sixth chapter compares and contrasts the experience from the capital market industry with the experience from banking and civil aviation industries and shows that the chosen conceptual framework can be applied to various sectors and that the cross-sectoral comparisons of regulatory and market developments add evidence to the coexistence of public interest and public choice models. The seventh chapter draws conclusions on the regulatory and market developments expected to lead to capital market integration and reviews the remaining barriers. It also discusses the impact of these developments along with those in banking and civil aviation on the whole European integration project.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available