Horizontal and Vertical Integration in Securities Trading and Settlement
用两国模型分析证券交易与结算基础设施整合的福利影响，发现横向整合优于纵向整合，但纵向整合仍优于不整合，对欧洲碎片化市场有政策启示。
This paper addresses a very European issue, the consolidation of securities trading and settlement infrastructures. In a two-country model, we analyze welfare implications of different types of consolidation. We find that in our model, full technical horizontal integration of settlement systems is better than vertical integration of exchanges and settlement systems, but vertical integration is still better than no consolidation. These findings have clear policy implications with regards to the highly fragmented European securities infrastructure.