Capital Markets and E-fraud Policy Note and Concept Paper for Future Study
The technological dependency of securities exchanges on internet-based (IP) platforms has dramatically increased the industry's exposure to reputation, market, and operational risks. In addition, the convergence of several innovations in the market are adding stress to these systems. These inno...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/05/5800517/capital-markets-e-fraud-policy-note-concept-paper-future-study http://hdl.handle.net/10986/8952 |
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okr-10986-89522021-04-23T14:02:42Z Capital Markets and E-fraud Policy Note and Concept Paper for Future Study Kellermann, Tom McNevin, Valerie AGENTS ANNUITIES APPLICATIONS AUDITS BAHAMAS BENEFIT ANALYSIS BROKERS BROKERS/TRADERS CAPITAL MARKETS COMMISSIONERS COMMISSIONS COMPUTER SYSTEMS CONSUMERS COVERAGE DEBT DECISION MAKING DEPOSIT INSURANCE E-BUSINESS E-COMMERCE EMERGING MARKETS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL REPORTING FINANCIAL SYSTEMS FRAUD GOVERNMENT SECURITIES INNOVATIONS INSIDER TRADING INSIDER TRADING DEALING INSURANCE INSURANCE COMPANIES INTEGRITY INTERNAL CONTROLS INVESTIGATIONS MARKET RISK MEDIA NEGATIVE EXTERNALITIES OIL PATENTS PAYMENT SYSTEMS POLICY MAKERS PORTFOLIOS PROGRAMS RATES REGULATORY FRAMEWORK RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SECURITIES TRADING STOCK EXCHANGES STOCK PRICES TELECOMMUNICATIONS THE TRADER/BROKERS TRANSACTION COSTS The technological dependency of securities exchanges on internet-based (IP) platforms has dramatically increased the industry's exposure to reputation, market, and operational risks. In addition, the convergence of several innovations in the market are adding stress to these systems. These innovations affect everything from software to system design and architecture. These include the use of XML (extensible markup language) as the industry IP language, STP or straight through processing of data, pervasive or diffuse computing and grid computing, as well as the increased use of Internet and wireless. The fraud is not new, rather, the magnitude and speed by which fraud can be committed has grown exponentially due to the convergence of once private networks on-line. It is imperative that senior management of securities markets and brokerage houses be properly informed of the negative externalities associated with e-brokerage and the possible critical points of failure that exist in today's digitized financial sector as they grow into tomorrow's exchanges. The overwhelming issue regarding e-finance is to determine the true level of understanding that senior management has about on-line platforms, including the inherent risks and the depth of the need to use it wisely. Kellermann and McNevin attempt to highlight the various risks that have been magnified by the increasing digitalization of processes within the brokerage arena and explain the need for concerted research and analysis of these as well as the profound consequences that may entail without proper planning. An effective legal, regulatory, and enforcement framework is essential for creating the right incentive structure for market participants. The legal and regulatory framework should focus on the improvement of internal monitoring of risks and vulnerabilities, greater information sharing about these risks and vulnerabilities, education and training on the care and use of these technologies, and better reporting of risks and responses. Public/private partnerships and collaborations also are needed to create an electronic commerce (e-commerce) environment that is safe and sound. 2012-06-25T17:40:42Z 2012-06-25T17:40:42Z 2005-05 http://documents.worldbank.org/curated/en/2005/05/5800517/capital-markets-e-fraud-policy-note-concept-paper-future-study http://hdl.handle.net/10986/8952 English Policy Research Working Paper; No. 3586 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGENTS ANNUITIES APPLICATIONS AUDITS BAHAMAS BENEFIT ANALYSIS BROKERS BROKERS/TRADERS CAPITAL MARKETS COMMISSIONERS COMMISSIONS COMPUTER SYSTEMS CONSUMERS COVERAGE DEBT DECISION MAKING DEPOSIT INSURANCE E-BUSINESS E-COMMERCE EMERGING MARKETS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL REPORTING FINANCIAL SYSTEMS FRAUD GOVERNMENT SECURITIES INNOVATIONS INSIDER TRADING INSIDER TRADING DEALING INSURANCE INSURANCE COMPANIES INTEGRITY INTERNAL CONTROLS INVESTIGATIONS MARKET RISK MEDIA NEGATIVE EXTERNALITIES OIL PATENTS PAYMENT SYSTEMS POLICY MAKERS PORTFOLIOS PROGRAMS RATES REGULATORY FRAMEWORK RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SECURITIES TRADING STOCK EXCHANGES STOCK PRICES TELECOMMUNICATIONS THE TRADER/BROKERS TRANSACTION COSTS |
| spellingShingle |
AGENTS ANNUITIES APPLICATIONS AUDITS BAHAMAS BENEFIT ANALYSIS BROKERS BROKERS/TRADERS CAPITAL MARKETS COMMISSIONERS COMMISSIONS COMPUTER SYSTEMS CONSUMERS COVERAGE DEBT DECISION MAKING DEPOSIT INSURANCE E-BUSINESS E-COMMERCE EMERGING MARKETS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL REPORTING FINANCIAL SYSTEMS FRAUD GOVERNMENT SECURITIES INNOVATIONS INSIDER TRADING INSIDER TRADING DEALING INSURANCE INSURANCE COMPANIES INTEGRITY INTERNAL CONTROLS INVESTIGATIONS MARKET RISK MEDIA NEGATIVE EXTERNALITIES OIL PATENTS PAYMENT SYSTEMS POLICY MAKERS PORTFOLIOS PROGRAMS RATES REGULATORY FRAMEWORK RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SECURITIES TRADING STOCK EXCHANGES STOCK PRICES TELECOMMUNICATIONS THE TRADER/BROKERS TRANSACTION COSTS Kellermann, Tom McNevin, Valerie Capital Markets and E-fraud Policy Note and Concept Paper for Future Study |
| relation |
Policy Research Working Paper; No. 3586 |
| description |
The technological dependency of securities exchanges on internet-based (IP) platforms has dramatically increased the industry's exposure to reputation, market, and operational risks. In addition, the convergence of several innovations in the market are adding stress to these systems. These innovations affect everything from software to system design and architecture. These include the use of XML (extensible markup language) as the industry IP language, STP or straight through processing of data, pervasive or diffuse computing and grid computing, as well as the increased use of Internet and wireless. The fraud is not new, rather, the magnitude and speed by which fraud can be committed has grown exponentially due to the convergence of once private networks on-line. It is imperative that senior management of securities markets and brokerage houses be properly informed of the negative externalities associated with e-brokerage and the possible critical points of failure that exist in today's digitized financial sector as they grow into tomorrow's exchanges. The overwhelming issue regarding e-finance is to determine the true level of understanding that senior management has about on-line platforms, including the inherent risks and the depth of the need to use it wisely. Kellermann and McNevin attempt to highlight the various risks that have been magnified by the increasing digitalization of processes within the brokerage arena and explain the need for concerted research and analysis of these as well as the profound consequences that may entail without proper planning. An effective legal, regulatory, and enforcement framework is essential for creating the right incentive structure for market participants. The legal and regulatory framework should focus on the improvement of internal monitoring of risks and vulnerabilities, greater information sharing about these risks and vulnerabilities, education and training on the care and use of these technologies, and better reporting of risks and responses. Public/private partnerships and collaborations also are needed to create an electronic commerce (e-commerce) environment that is safe and sound. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kellermann, Tom McNevin, Valerie |
| author_facet |
Kellermann, Tom McNevin, Valerie |
| author_sort |
Kellermann, Tom |
| title |
Capital Markets and E-fraud Policy Note and Concept Paper for Future Study |
| title_short |
Capital Markets and E-fraud Policy Note and Concept Paper for Future Study |
| title_full |
Capital Markets and E-fraud Policy Note and Concept Paper for Future Study |
| title_fullStr |
Capital Markets and E-fraud Policy Note and Concept Paper for Future Study |
| title_full_unstemmed |
Capital Markets and E-fraud Policy Note and Concept Paper for Future Study |
| title_sort |
capital markets and e-fraud policy note and concept paper for future study |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/05/5800517/capital-markets-e-fraud-policy-note-concept-paper-future-study http://hdl.handle.net/10986/8952 |
| _version_ |
1764407331393634304 |