Struggle and Survival on Wall Street: The Economics of Competition among Securities Firms

by John O. Matthews

Overview

U.S. securities firms are the most competitive in the world and are now facing challenges posed by the internationalization of securities markets. Struggle and Survival on Wall Street provides a comprehensive economic analysis of competition among securities firms. John Matthews analyzes the interaction of the industry's structure, conduct and performance. To meet the competition and the needs of their customers, he argues, firms develop new financial products, some of which become new lines of business. The most important decisions firms make concern the methods of entry into these lines of business. Those firms that successfully innovate and adapt their organizations are in the best position to deal with both domestic and international competition. The regulatory framework of the industry is vital to its growth and Matthews makes policy recommendations which urge regulators, particularly the Securities and Exchange Commission, to provide for a framework in which organizational change can take place.

Product Details

ISBN-13:	9780195050639
Publisher:	Oxford University Press
Publication date:	03/03/1994
Pages:	288
Product dimensions:	6.31(w) x 9.56(h) x 1.13(d)
Lexile:	1470L (what's this?)

About the Author

John Matthews is an Associate Professor of Economics at Villanova University.

Table of Contents

I. Introduction to the Securities Industry1. Introduction2. Accelerating Change, 1980-19923. An Overview of the Securities IndustryII. The Legislative and Regulatory Framework4. The Legislative Framework5. The Safety and Soundness of Broker-Dealers: The Net Capital Rule6. Principal-Agent Problems in the Securities IndustryIII. Elements of Securities Industry Structure7. Characteristics of Demand8. Costs and Entry Barriers in the Securities Industry9. Mergers, Concentration, and Multiproduct Economics of Scale and ScopeIV. Conduct10. Securities Brokerage Pricing11. Market Making, Proprietary Trading, and Derivatives12. Investment Banking13. Competition Through Innovation14. Diversification by Securities FirmsV. Performance and Public Policy15. Merrill Lynch, Morgan Stanley, and Salomon Brothers Adapt16. Competition in the International Securities Markets17. Performance of the Securities Industry18. Policy Implications and RecommendationsReferencesAuthor IndexSubject Index

Editorial Reviews

"Rich in institutional detail, yet analytical in focus, this book provides a comprehensive look at the securities industry in the 1980s. Anyone interested in the changing structure of the industry, in product innovation, in regulatory issues, in market making and in a host of other topics will find this an interesting and rewarding book."—Hans R. Stoll, Vanderbilt University

"Struggle and Survival on Wall Street: The Economics of Competition Among Securities Firms is required reading for those wanting to understand the economic motivations and workings of securities firms and the securities markets that they serve. Matthews' analysis of industry structure changes and institutional arrangements makes for particularly interesting reading."—Gene L. Finn, Vice-President and Chief Economist, National Association of Securities Dealers, Inc.

"An imaginative, up to date application of the lessons of modern industrial organization and competitive analysis to the rapidly evolving, highly competitive U.S. securities industry."—Ingo Walter, New York University

"John Matthews' Struggle and Survival on Wall Street is an insightful analysis of broker-dealer competition as it developed in the '80s and continues even today. His focus on the innovation and adaptation of broker-dealers operating in a highly regulated environment, while satisfying customer demand and providing niche market opportunities, is well taken. Professor Matthews' significant policy recommendation that regulators provide an appropriately flexible framework for accommodating innovation is particularly on point."—Nicholas A. Giordano, President and Chief Executive Officer, Philadelphia Stock Exchange

"A thoroughly researched book on an important and fascinating industry...Struggle and Survival on Wall Street provides a comprehensive study of securities firms. It should be of great interest to economists, as well as to practitioners who work in or with the securities industry."—Journal of Economic Literature

From the Publisher