ICT technologies and financial innovations: The case of exchange traded funds in Brazil, Japan, Mexico, South Korea and the United States

Lechman, Ewa; Marszk, Adam

doi:10.1016/j.techfore.2015.01.006

Cited by 71 publications

(44 citation statements)

References 36 publications

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“…The first three all provide insights into the companies transforming capital markets and the new electronic 'market infrastructure' 4 that is emerging (Ernkvist, 2015;Essendorfer et al, 2015;Panourgias, 2015). The last two contributions focus on two important and relatively recent innovations in finance that have been enabled by the new market infrastructure, namely High Frequency Trading (HFT) (Kauffman et al, 2015) and Exchange Traded Funds (ETFs) (Lechman and Marszk, 2015). Though only a small Special Issue, contributions come from a diverse range of disciplines, approaches and methodologies reflecting TFSC's open ethos in this respect.…”

Section: The Technological Transformation Of Capital Marketsmentioning

confidence: 99%

“…Panourgias 2015 Lechman and Marszk (2015) highlight that ETFs are enabled by the use of ICTs both on the demand side (by those that buy the funds) and the supply side (by the firms that create the funds). This hypothesised relationship is empirically verified in their analysis, since they find a positive relationship between ICT diffusion and ETF market development.…”

Section: Summary Of Contributionsmentioning

confidence: 99%

“…From all five contributions it is clear that the preponderance of this transformation is simply driven by the application of ICT technologies in a capital market context. This combination of software and ICT hardware results in the redefinition of 'place' to an electronic dimension (Ernkvist, 2015;Essendorfer et al, 2015;Panourgias 2015), often leading to patents (Essendorfer et al 2015) and/or the development of new financial innovations (Kauffman et al, 2015;Lechman and Marszk, 2015). Thus for technologists this is not necessarily a particular exciting transformation, however, some examples of the application of leading-edge technologies is apparent from Kauffman et al, (2015) who note that in their quest for speed (low latency) HFTs are experimenting with microwave data transmission technology and using microchips that can execute trades in nanoseconds.…”

Section: Technology Competition and The New Market Infrastructurementioning

confidence: 99%

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The technological transformation of capital markets

Diaz‐Rainey

Ibikunle

Mention

2015

Technological Forecasting and Social Change

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Technology has dramatically altered capital markets over the past few decades. Technologically induced innovations such as electronic exchanges, high frequency trading (HFT) and exchange traded funds (ETFs) have made trading in capital markets faster, cheaper and more integrated, yet at the same time market liquidity has become more fragmented and opaque. Further, there are concerns that this new paradigm leads to greater volatility and myopia in the core function of finance (raising capital for entrepreneurial activity). Capital markets are clearly complex adaptive techno-social systems that are undergoing dramatic changes yet they are rarely researched from an innovation research or technological change perspective. In this editorial, we introduce the themes and issues highlighted by the papers in this Special Issue that addresses this gap in the literature. The contributions illuminate the technologies and related innovations that are changing the nature of capital markets. However, technology cannot be seen in isolation from other forces, most notably regulation, organisational innovation and new entrants. Moreover, technology is not only changing existing markets, it is expanding the scope of markets. Thus we conclude that that financialization (the process by which financial markets become increasingly important in the economy and society) is a technology enabled phenomenon-something hitherto largely overlooked by the financialization literature.

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Section: The Technological Transformation Of Capital Marketsmentioning

confidence: 99%

Section: Summary Of Contributionsmentioning

confidence: 99%

Section: Technology Competition and The New Market Infrastructurementioning

confidence: 99%

See 1 more Smart Citation

The technological transformation of capital markets

Diaz‐Rainey

Ibikunle

Mention

2015

Technological Forecasting and Social Change

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“…This subsection will ETFs can be most broadly defined as financial products with shares listed and traded on the stock exchanges (similar to e.g. equities) whose prices track the prices of selected assets, usually equity or fixed income indices (Agapova, 2011;Abner, 2016;Gastineau, 2010;Lechman & Marszk 2015). In recent years many new types of ETFs have been introduced on the markets, e.g.…”

Section: Exchange Traded Commodities and Exchange Traded Funds: Compamentioning

confidence: 99%

Exchange traded commodities as a category of innovative products on European financial markets

Marszk

2017

E-Finanse

Self Cite

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The article presents the main features of one category of innovative financial products -exchange traded commodities (ETCs) and results of the analysis of the European market for ETCs. ETCs are products listed and traded on the stock exchanges and they offer investors returns based on various assets (commodities or currencies). In contrast with the most widely recognized exchange traded funds (ETFs), ETCs are structured as debt instruments due to legal requirements regarding investment funds in the European Union. The European ETCs market is the largest in the world (in terms of assets its share in the global market in 2015 was close to 98%). It had developed rapidly until 2012 when total assets reached the record-high value of ca. 26,6 billion EUR (i.e. 9,5% of total assets of all exchange traded products listed in Europe). Over the next few years both the value of assets and market share of ETCs decreased significantly, mostly due to decline of the tracked assets' prices (especially commodities) -during the analyzed time periodthe average flows to commodity or currency ETCs were close to 0. An important feature of the European market is its high concentration level, both in terms of companies launching ETCs and locations of the trade in the share of ETCs. Four ETC providers manage most of the assets (with the cumulated market share of over 94%). Three exchanges -in London, Milan and Frankfurt am Main account for almost the entire regulated market turnover of ETCs in Europe.

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“…The growing literature on the macroeconomic impact of the Internet has also shown that a rise in Internet use is positively associated with international trade, notably export of goods (e.g., Clarke & Wallsten, 2006;Freund & Weinhold, 2004;Gnangnon & Iyer, 2017;Lin, 2015) and export of services (e.g., Choi, 2010;Freund & Weinhold, 2002). Internet use could also help reduce inflation (e.g., Yi & Choi, 2005), exert a positive impact on economic growth (e.g., Choi and Yi, 2009), exert a reducing impact on corruption (e.g., Lio, Liu, & Ou, 2011), and positively influence exchange traded funds (ETF) (e.g., Lechman & Marszk, 2015).…”

Section: Introductionmentioning

confidence: 99%

Does Aid for Information and Communications Technology Help Reduce the Global Digital Divide?

Gnangnon¹

2019

Policy & Internet

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The Aid for Trade (AfT) initiative was launched at the 2005 World Trade Organization Ministerial Conference with the aim of helping developing countries develop their trade capacity and better integrate into the global trade system. This article examines the impact of Aid for Information and Communications Technology (ICT) (a component of AfT) on the global digital divide of recipient countries, measured by the Internet penetration rate (i.e., the proportion of individuals using the Internet in a given country) and the Internet penetration distance (i.e., the difference between a country's Internet penetration rate and the world average). The analysis was conducted on a sample of 119 countries, spanning the period 2004–2015. We find empirical evidence that higher AfT inflows for ICT are conducive to both higher Internet penetration rate and higher Internet penetration distance for recipient countries. However, more advanced AfT recipient‐countries experience a higher positive effect of AfT for ICT than do relatively less advanced countries. These findings suggest that scaling up of AfT for ICT for developing countries (but particularly the poorest countries) is necessary to help them build the Internet‐related infrastructure necessary to benefit from the growing digital economy.

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ICT technologies and financial innovations: The case of exchange traded funds in Brazil, Japan, Mexico, South Korea and the United States

Cited by 71 publications

References 36 publications

The technological transformation of capital markets

The technological transformation of capital markets

Exchange traded commodities as a category of innovative products on European financial markets

Does Aid for Information and Communications Technology Help Reduce the Global Digital Divide?

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