Equity markets and financial stability : regulatory issues

This article provides an overview of the specific features of equity markets in terms of the consequences of stock market crises, the structural developments underway in these markets, and the importance of regulations for financial stability. It sets out by discussing the difficulties involved in defining the concept of financial stability, and then analyses the regulatory authorities’ responses to the main stock market crises. It then examines, against this backdrop, the issues raised by the growing globalisation of markets and the changes in the transaction process brought about by the dynamics of consolidation and competition among exchanges. JEL classification : G18, G28, G38