This is a treatment of the effects of increased transparency on financial markets: an important and highly controversial issue for both traders and regulators. Focusing on three main themes - market transparency, the consolidation-fragmentation of trading systems and the scope of regulation (i.e. which markets, and which traders within those markets, should be subject to regulation) - the book highlights the importance of these issues to all markets throughout the world. The book draws on research from eight UK-based investment exchanges, Deutsche Borse in Frankfurt and documentary evidence from the US markets and their regulators, enabling the identification and documentation of the current situation and consideration of what fresh regulatory approaches are required for this new and fast evolving situation.Orderly Markets: A Summary of the Arguments Orderly Markets: Summary Summary and Conclusions The Recognised Investment Exchanges Fragmentation and Consolidation The Regulation of Transparency Over the Counter (OTC) Markets Appendix 1: RIE Results Appendix 2: Fragmentation and Consolidation Appendix 3: Trading Systems: Theoretical and Empirical Literature Appendix 4: Theory and Results of Transparency Appendix 5: Bid-Ask Spreads under Different Market Structures Appendix 6: Cross-Listing: Empirical Evidence SUMMARY AND CONCLUSIONS Introduction and Terms of Reference Objectives and Scope of Market Regulation Regulatory Risks Convergence and Divergence The UK RIEs Emergence of Contestability The Investment Chain Consequences of the Investment Chain Approach Regulatory Challenges in Fragmented Markets Specific Regulatory Challenges in Fragmented Markets New Regulatory Framework Summary of the Regime Notes