The impact of regulation on European equities markets

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This study investigates the impact of regulation on European equities markets from different perspectives and by using various methodologies. Four research questions aim to shed light on how regulatory objectives impact on securities trading and post-trading. While the a priori perspective hints at the danger of imminent order flow fragmentation and potential negative effects of competition induced by regulation, we find empirical evidence for the legislators' success in fostering competition between European equities markets. Moreover, we introduce a new measure for a systematic comparison of market quality other than the long-established liquidity measures.