CH AP T E R 2 0 - E M ER GI NG I SS U E S

DEVELOPMENTS IN WORLD FINANCIAL MARKETS

Global financial crisis

Dark pool trading

Removal of barriers to the movement of capital

International regulations on money laundering

FINANCIAL CRISIS

Lehman Brothers (Sept 2008)

Northern Rock (2007)

SOVEREIGN DEBT CRISIS

Greece

Ireland

Spain

Portugal

DARK POOL TRADING

Dark pool liquidity

Upstairs market

Dark liquidity

Dark pool

Electronic platforms that allow buyers and sellers to conceal large orders of shares from the public
but which should be publicised to make trading more fair for all parties

Used by institutional investors

OTC transactions

Unavailable to the general public

No identifier of the trader or the price

CH AP T E R 2 0 - E M ER GI NG I SS U E S

REMOVAL OF BARRIERS TO THE MOVEMENT OF CAPITAL

Financial institutions

High Street banks

Merchant banks

Insurance companies

Significance for companies

Mergers/acquisitions

Risk

Customers

Employees

Finance
CH AP T E R 2 0 - E M ER GI NG I SS U E S

INTERNATIONAL REGULATIONS ON MONEY LAUNDERING

Money laundering

Any financial transaction where the purpose is to conceal the identity of the parties to the
transaction or to make tracing the transaction difficult.

Clean money

Avoid tax

Distort accounting information

Companies at risk

Cash businesses

Luxury goods

Significance to companies

Assess the risk

Take action to reduce the risk

Risk process

Identify the risk

Assess the risk

Profile the risk

Manage the risk

Monitor the risk

Record the process