ofSecuritiesMarkets中文4证券市场组织与运作

ofSecuritiesMarkets中文4证券市场组织与运作2024/3/27ofSecuritiesMarkets中文4证券市场组织与运作Chapter4

OrganizationandFunctioningofSecuritiesMarketsQuestionstobeanswered:Whatisthepurposeandfunctionofamarket?Whatarethecharacteristicsthatdeterminethequalityofamarket?Whatisthedifferencebetweenaprimaryandsecondarycapitalmarketandhowdothesemarketssupporteachother?ofSecuritiesMarkets中文4证券市场组织与运作Chapter4

OrganizationandFunctioningofSecuritiesMarketsWhatarethenationalexchangesandhowarethemajorsecuritymarketsbecominglinked(whatismeantby“passingthebook”)?Whataretheregionalstockexchangesandtheover-the-counter(OTC)market?Whatarethealternativemarket-makingarrangementsavailableontheexchangesandtheOCTmarket?ofSecuritiesMarkets中文4证券市场组织与运作Chapter4

OrganizationandFunctioningofSecuritiesMarketsWhatarethemajortypesofordersavailabletoinvestorsandmarketmakers?WhatarethemajorfunctionsofaspecialistontheNYSEandhowdoesthespecialistdifferfromthecentralmarketmakeronotherexchanges?Whatarethemajorfactorsthathavecausedthesignificantchangesinmarketsaroundtheworldinthepast10to15years?ofSecuritiesMarkets中文4证券市场组织与运作Chapter4

OrganizationandFunctioningofSecuritiesMarketsWhataresomeofthemajorchangesinworldcapitalmarketsexpectedoverthenextdecade?ofSecuritiesMarkets中文4证券市场组织与运作Whatisamarket?BringsbuyersandsellerstogethertoaidinthetransferofgoodsandservicesDoesnotrequireaphysicallocationBothbuyersandsellersbenefitfromthemarketofSecuritiesMarkets中文4证券市场组织与运作CharacteristicsofaGoodMarketAvailabilityofpasttransactioninformationmustbetimelyandaccurateLiquiditymarketabilitypricecontinuitydepthLowTransactioncostsRapidadjustmentofpricestonewinformationofSecuritiesMarkets中文4证券市场组织与运作OrganizationoftheSecuritiesMarketPrimarymarketsMarketwherenewsecuritiesaresoldandfundsgotoissuingunit

SecondarymarketsMarketwhereoutstandingsecuritiesareboughtandsoldbyinvestors.TheissuingunitdoesnotreceiveanyfundsinasecondarymarkettransactionofSecuritiesMarkets中文4证券市场组织与运作GovernmentBondIssues1.TreasuryBills–negotiable,non-interestbearingsecuritieswithoriginalmaturitiesofoneyearorless2.TreasuryNotes–originalmaturitiesof2to10years3.TreasuryBonds–originalmaturitiesofmorethan10yearsofSecuritiesMarkets中文4证券市场组织与运作MunicipalBondIssuesSoldbythreemethodsCompetitivebidNegotiationPrivateplacementUnderwriterssellthebondstoinvestorsOriginationRisk-bearingDistributionofSecuritiesMarkets中文4证券市场组织与运作TheUnderwritingFunctionTheinvestmentbankerpurchasestheentireissuefromtheissuerandresellsthesecuritytotheinvestingpublic.Thefirmchargesacommissionforprovidingthisservice.Formunicipalbonds,theunderwritingfunctionisperformedbybothinvestmentbankingfirmsandcommercialbanks

ofSecuritiesMarkets中文4证券市场组织与运作CorporateBondandStockIssuesNewissuesaredividedintotwogroupsSeasonednewissues-newsharesofferedbyfirmsthatalreadyhavestockoutstandingInitialpublicofferings(IPOs)-afirmsellingitscommonstocktothepublicforthefirsttimeofSecuritiesMarkets中文4证券市场组织与运作UnderwritingRelationshipswithInvestmentBankers1.NegotiatedMostcommonFullservicesofunderwriter2.CompetitivebidsCorporationspecifiessecuritiesofferedLowercostsReducedservicesofunderwriter3.Best-effortsInvestmentbankeractsasbrokerofSecuritiesMarkets中文4证券市场组织与运作IntroductionofRule415AllowsfirmstoregistersecuritiesandsellthempiecemealoverthenexttwoyearsReferredtoasshelfregistrationsGreatflexibilityReducesregistrationfeesandexpensesAllowsrequestingcompetitivebidsfromseveralinvestmentbankingfirmsMostlyusedforbondsalesofSecuritiesMarkets中文4证券市场组织与运作PrivatePlacementsandRule144AFirmssellstoasmallgroupofinstitutionalinvestorswithoutextensiveregistrationLowerissuingcoststhanpublicofferingofSecuritiesMarkets中文4证券市场组织与运作WhySecondaryFinancialMarketsAreImportantProvidesliquiditytoinvestorswhoacquiresecuritiesintheprimarymarketResultsinlowerrequiredreturnsthanifissuershadtocompensateforlowerliquidityHelpsdeterminemarketpricingfornewissuesofSecuritiesMarkets中文4证券市场组织与运作SecondaryBondMarketSecondarymarketforU.S.governmentandmunicipalbondsU.S.governmentbondstradedbybonddealersBanksandinvestmentfirmsmakeupmunicipalmarketmakersSecondarycorporatebondmarketTradedthroughanOTCmarketofSecuritiesMarkets中文4证券市场组织与运作FinancialFuturesBondfuturesaretradedinChicagoBoardofTrade(CBOT)ChicagoMercantileExchange(CME)ofSecuritiesMarkets中文4证券市场组织与运作SecondaryEquityMarkets1.MajornationalstockexchangesNewYork,American,Tokyo,andLondonstockexchanges2.RegionalstockexchangesChicago,SanFrancisco,Boston,Osaka,Nagoya,Dublin,Cincinnati3.Over-the-counter(OTC)marketStocksnotlistedonorganizedexchangeofSecuritiesMarkets中文4证券市场组织与运作TradingSystemsPureauctionmarketBuyersandsellersarematchedbyabrokeratacentrallocationPrice-drivenmarketDealermarketDealersprovideliquiditybybuyingandsellingsharesDealersmaycompeteagainstotherdealersofSecuritiesMarkets中文4证券市场组织与运作CallVersusContinuousMarketsCallmarketstradeindividualstocksatspecifiedtimestogatherallordersanddetermineasinglepricetosatisfythemostordersUsedforopeningpricesonNYSEifordersbuildupovernightoraftertradingissuspendedInacontinuousmarket,tradesoccuratanytimethemarketisopenofSecuritiesMarkets中文4证券市场组织与运作NationalStockExchangesLargenumberoflistedsecuritiesPrestigeoffirmslistedWidegeographicdispersionoflistedfirmsDiverseclienteleofbuyersandsellersofSecuritiesMarkets中文4证券市场组织与运作NewYorkStockExchange(NYSE)LargestorganizedsecuritiesmarketinUnitedStatesEstablishedin1817,butdatesbacktothe1792ButtonwoodAgreementby24brokersOver3,000companieswithsecuritieslistedTotalmarketvalueover$13trillionofSecuritiesMarkets中文4证券市场组织与运作AmericanStockExchange(AMEX)StartedbyagroupwhotradedunlistedstocksatthecornerofWallandHanoverStreetsinNewYorkastheOutdoorCurbMarketEmphasisonforeignsecuritiesDoesn’ttradestockslistedonNYSEMergedwiththeNASDAQIN1998althoughtheycontinuedtooperateasseparatemarketsWarrantstradedonAMEXyearsbeforeNYSElistedanyofSecuritiesMarkets中文4证券市场组织与运作TokyoStockExchange(TSE)LargestoftheeightexchangesinJapanDominatestheJapanesemarketEstablishedin1878andreorganizedin1943,1947,and1949Price-drivesystemDomesticandforeignstockslistedApproximately1700stockslistedwithatotalmarketvalueof$2.4trillionMostactive150stocksaretradedonfloor,othersbycomputerofSecuritiesMarkets中文4证券市场组织与运作LondonStockExchange(LSE)LargestsecuritiesmarketintheUnitedKingdomTradeslistedandunlistedsecuritiesMorethan2,600companieslistedLargestlistingofforeignstocksonanyexchangeTotalmarketvalueofmorethan$561billionPricingsystembycompetingdealersviacomputerssimilartoNASDAQsysteminU.S.ofSecuritiesMarkets中文4证券市场组织与运作TrendsNewexchangesinemergingeconomiessuchasRussia,Poland,China,Hungary,Peru,SriLankaConsolidationofexistingexchangesindevelopedcountriesGlobaltwenty-four-hourmarket–madepossiblebyadvancesintechnologyofSecuritiesMarkets中文4证券市场组织与运作RecentConsolidationsIn1995,Germany’sthreelargestexchangesmergedintotheoneinFrankfurtNASDmergedwithAMEXPhiladelphiaStockExchangemergedwithNASD/AMEXCBOEmergedwithPacificExchangeTheAmsterdam,BrusselsandParisexchangesformedanallianceTheStockholm,Copenhagen,andOsloexchangesformedanalliancecalledtheNordicCountryAllianceofSecuritiesMarkets中文4证券市场组织与运作TheGlobalTwenty-fourHourMarketInvestmentfirms“passthebook”aroundtheworldtomaintainnearlycontinuoustradingbyutilizingmarketsatTokyo,London,andNewYorkTHETRADINGDAY LocalTime ESTTSE 09:00-11:00 23:00-01:00 13:00-15:00 03:00-05:00LSE 08:15-16:15 02:15-10:15NYSE 09:30-16:00 09:30-16:00ofSecuritiesMarkets中文4证券市场组织与运作RegionalExchangesStocksnotlistedonaformalexchangeListingrequirementsvaryListedstocksAllowbrokersthatarenotmembersofanationalexchangeaccesstosecuritiesRegionalExchangesinUnitedStatesChicago,Boston,Cincinnati,Pacific,PhiladelphiaofSecuritiesMarkets中文4证券市场组织与运作Over-the-Counter(OTC)MarketNotaformalorganizationLargestsegmentoftheU.S.secondarymarketUnlistedstocksandlistedstocks(thirdmarket)LenientrequirementsforlistingonOTC5,000issuesactivelytradedonNASDAQNMS(NationalAssociationofSecuritiesDealersAutomatedQuotationsNationalMarketSystem)

1,000issuesonNASDAQapartfromNMS1,000issuesnotonNASDAQofSecuritiesMarkets中文4证券市场组织与运作OperationoftheOTCAnystockmaybetradedaslongasithasawillingmarketmakertoactadealerOTCisanegotiatedmarketofSecuritiesMarkets中文4证券市场组织与运作TheNASDAQSystemAutomatedelectronicquotationsystemDealersmayelecttomakemarketsinstocksAlldealerquotesareavailableimmediatelyThreelevelsofquotationsprovidedLevel1providesasinglemedianrepresentativequoteforthestocksonNASDAQLevel2showsquotesbyallmarketmakersLevel3isforOTCmarketmakerstochangetheirquotesshownofSecuritiesMarkets中文4证券市场组织与运作ListingRequirementsforNASDAQTwolistsNationalMarketSystem(NMS)RegularNASDAQFoursetsofrequirementsInitiallisting-leaststringentAutomaticNMSinclusion-uptotheminuteAlternative1forprofitablecompanieswithlimitedassetsAlternative2forlargebutlessprofitableofSecuritiesMarkets中文4证券市场组织与运作ThirdMarketOTCtradingofshareslistedonanexchangeMostlywellknownstocksGM,IBM,AT&T,XeroxCompeteswithtradesonexchangeMaybeopenwhenexchangeisclosedortradingsuspendedofSecuritiesMarkets中文4证券市场组织与运作FourthMarketDirecttradingofsecuritiesbetweentwopartieswithnobrokerintermediaryUsuallybothpartiesareinstitutionsCansavetransactioncostsNodataareavailableregardingitsspecificsizeandgrowthofSecuritiesMarkets中文4证券市场组织与运作DetailedAnalysisof

ExchangeMarketsExchangeMembershipMajorTypesofOrdersExchangeMarketMakersofSecuritiesMarkets中文4证券市场组织与运作ExchangeMembershipSpecialistCommissionbrokersEmployeesofamemberfirmwhobuyorsellforthecustomersofthefirmFloorbrokersIndependentmembersofanexchangewhoactasbrokerforothermembersRegisteredtradersUsetheirmembershiptobuyandsellfortheirownaccountsofSecuritiesMarkets中文4证券市场组织与运作MajorTypesofOrdersMarketordersBuyorsellatthebestcurrentpriceProvidesimmediateliquidityLimitordersOrderspecifiesthebuyorsellpriceTimespecificationsforordermayvaryInstantaneous-“fillorkill”,partofaday,afullday,severaldays,aweek,amonth,orgooduntilcanceled(GTC)ofSecuritiesMarkets中文4证券市场组织与运作MajorTypesofOrdersShortsalesSelloverpricedstockthatyoudon’townandpurchaseitbacklater(atalowerprice)Borrowthestockfromanotherinvestor(throughyourbroker)CanonlybemadeonanupticktradeMustpayanydividendstolenderMarginrequirementsapplyofSecuritiesMarkets中文4证券市场组织与运作MajorTypesofOrdersSpecialOrdersStoplossConditionalordertosellstockifitdropstoagivenpriceDoesnotguaranteepriceyouwillgetuponsaleMarketdisruptionscancancelsuchordersStopbuyorderInvestorwhosoldshortmaywanttolimitlossifstockincreasesinpriceofSecuritiesMarkets中文4证券市场组织与运作MarginTransactionsOnanytypeorder,insteadofpaying100%cash,borrowaportionofthetransaction,usingthestockascollateralInterestrateonmargincreditmaybebelowprimerateRegulationslimitproportionborrowedMarginrequirementsarefrom50%upChangesinpriceaffectinvestor’sequityofSecuritiesMarkets中文4证券市场组织与运作MarginTransactionsBuy200sharesat$50=$10,000positionBorrow50%,investmentof$5,000Ifpriceincreasesto$60,positionValueis$12,000Less-$5,000borrowedLeaves$7,000equityfora$7,000/$12,000=58%equitypositionofSecuritiesMarkets中文4证券市场组织与运作MarginTransactionsBuy200sharesat$50=$10,000positionBorrow50%,investmentof$5,000Ifpricedecreasesto$40,positionValueis$8,000Less-$5,000borrowedLeaves$3,000equityfora$3,000/$8,000=37.5%equitypositionofSecuritiesMarkets中文4证券市场组织与运作MarginTransactionsInitialmarginrequirementatleast50%.SetupbytheFed.MaintenancemarginRequirementproportionofequitytostockProtectsbrokerifstockpricedeclinesMinimumrequirementis25%MargincallonundermarginedaccounttomeetmarginrequirementIfmargincallnotmet,stockwillbesoldtopayofftheloanofSecuritiesMarkets中文4证券市场组织与运作ExchangeMarketMakers

U.S.MarketsSpecialistisexchangememberassignedtohandleparticularstocksHastworoles:BrokertomatchbuyersandsellersDealertomaintainfairandorderlymarketSpecialisthastwoincomesourcesBrokercommission,withoutriskDealertradingincomefromprofit,withriskofSecuritiesMarkets中文4证券市场组织与运作ExchangeMarketMakers

TokyoStockExchange(TSE)RegularmembersSeveralemployeesallowedontradingfloorTradingclerksforcustomersaccountsBuyandsellforownaccountsSaitorimemberHundredsofemployeesontradingfloorIntermediaryclerksBrokersamongmembersMaintainlimitordersofSecuritiesMarkets中文4证券市场组织与运作TSEMembershipMembershiprequirescorporatelicenseFourtypesoflicenseareavailableandmaybecombined1.Tradesecuritiesasadealer2.Tradeasabroker3.Underwritenewsecuritiesonsecondaryofferings4.HandleretaildistributionofsecuritiesCapitalrequirementsvarybylicenseofSecuritiesMarkets中文4证券市场组织与运作LondonStockExchangeBrokerstradeonbehalfoftheircustomersJobbersbuyandsellasprincipalsMembershipbasedonexperienceandcompetenceMembershipfee1%ofgrossrevenuesofSecuritiesMarkets中文4证券市场组织与运作ChangesintheSecuritiesMarketsSince1965,thegrowthoftradingbylargefinancialinstitutionshashadmanyeffectsNegotiated(competitive)commissionratesInfluenceonblocktradesImpactonstockpricevolatilityDevelopmentofNationalMarketSystem(NMS)ofSecuritiesMarkets中文4证券市场组织与运作NegotiatedCommissionRatesNYSEminimumcommissionscheduleprohibitedpricecuttingsince1792NopricebreakforlargeordersInitialreactionwas“give-ups”paidtoadesignatedfirm-softdollarspaidformarketresearchThirdmarketcompetedwithflexiblecommissionsandgrewFostereddevelopmentofthefourthmarketofSecuritiesMarkets中文4证券市场组织与运作NegotiatedCommissionRatesIn1970SECbeganphasinginnegotiatedcommissionsCommissionrateshavefallenDiscountbrokeragefirmscompeteopenlyManybrokerageandresearchfirmshavemergedorliquidatedofSecuritiesMarkets中文4证券市场组织与运作TheImpactofBlockTradesNumberandsizeofblocktradeshasincreasedThisstrainstheexchangespecialistsystemCapital-10,000shareorlargerblocksCommitment-largeriskwithlargeblocksContacts-Rule113prohibiteddirectcontacttoofferblockstoanotherinstitutionofSecuritiesMarkets中文4证券市场组织与运作TheImpactofBlockTradesBlockhousesareinvestmentfirmsthathelpinstitutionslocateotherinstitutionsinterestedinbuyingorsellingblocksofstockAgoodblockhousehasThecapitalrequiredtopositionalargeblockThewillingnesstocommitthiscapitaltoablocktransaction,andContactsamonginstitutionsofSecuritiesMarkets中文4证券市场组织与运作InstitutionsandStockPriceVolatilityEmpiricalstudieshavenotsupportedthetheorythatinstitutionaltradingincreasespricevolatilityWheretradingisdominatedbyinstitutions,activelyinvolvedinstitutionsmayprovideliquidityforoneanotherandnoninstitutionalinvestorsofSecuritiesMarkets中文4证券市场组织与运作NationalMarketSystems(NMS)NMShasbeenadvocatedbyfinancialinstitutionstoprovidegreaterefficiency,competition,andlowercostoftransactionsNMSisexpectedtohave:1.Centralizedreportingofalltransactions2.Centralizedquotationsystem3.Centralizedlimitorderbook(CLOB)4.CompetitionamongallqualifiedmarketmakersofSecuritiesMarkets中文4证券市场组织与运作1.CentralizedReportingShouldrecordalltransactionsofastock,regardlessoflocationNYSEstartedacentraltapeinJune1975coveringallNYSEstockstradedonotherexchangesandOTCofSecuritiesMarkets中文4证券市场组织与运作2.CentralizedQuotationSystemListquotesforastockfromallmarketmakersonthenationalexchanges,regionalexchanges,andOTCBrokerswouldcompletetradesonthemarketwiththebestquoteIntermarketTradingSystem(ITS)developedbyAmerican,Boston,Chicago,NewYork,Pacific,andPhiladelphiaStockExchangesandNASDofSecuritiesMarkets中文4证券市场组织与运作3.CentralizedLimitOrderBookShouldcontainalllimitordersfromallmarketsShouldbevisibletoalltradersAllmarketmakersandtraderscouldfillordersonitTechnologyexists,butNYSEspecialistsfillmostlimitordersandopposeCLOBbecausetheydonotwanttosharethislucrativebusinessofSecuritiesMarkets中文4证券市场组织与运作4.CompetitionAmongAllQualifiedMarketMakers(Rule390)MarketmakerscompeteonOTCmarketCompetitionreducesbid-askspreadNYSEopposescompetitionandarguesthatcentralauctionresultsinbestmarketandexecutionNYSERule390requiresmemberstoobtainpermissionoftheexchangebeforetradingalistedstockofftheexchange,forcingtransactionstotheexchangetocreateacentralmarketofSecuritiesMarkets中文4证券市场组织与运作NewTradingSystemsDailytradingvolumehasincreasedfrom5millionsharestooverabillionsharesNYSEroutinelyhandlesdayswithvolumeoverabillionsharesTechnologyhasallowedthemarketprocesstokeeppaceofSecuritiesMarkets中文4证券市场组织与运作SuperDOTElectronicorder-routingsystemMemberfirmstransmitmarketandlimitordersinNYSEsecuritiestotradingpostsormemberfirm’sboothReportofexecutionreturnedelectronically85%ofNYSEmarketordersenterthroughSuperDOTsystemofSecuritiesMarkets中文4证券市场组织与运作DisplayBookElectronicworkstationthatkeepstrackofalllimitordersandincomingmarketorders,includingincomingSuperDotlimitordersofSecuritiesMarkets中文4证券市场组织与运作OpeningAutomatedReportService(OARS)Pre-openingmarketordersforSuperDotsystemOARSautomaticallyandcontinuouslypairsbuyandsellordersPresentsimbalancetothespecialistpriortotheopeningofastockHelpsdetermineopeningpriceandpotentialneedforpreopeningcallmarketofSecuritiesMarkets中文4证券市场组织与运作MarketOrderProcessingSuperDot’spostopeningmarketordersystemisdesignedtoacceptmemberfirms’postopeningmarketordersupto3millionsharesRapidexecutionandreportingofmarketordersIn2000,ordersexecutedandreportedin15-16secondsonaverageofSecuritiesMarkets中文4证券市场组织与运作LimitOrderProcessingElectronicallyfilesorderstobeexecutedwhenandifaspecificpriceisreachedUpdatestheSpecialist’sDisplayBookGood-until-cancelledordersthatarenotexecutedarestoreduntilexecutedorcancelledofSecuritiesMarkets中文4证券市场组织与运作G