Survey_CJ_2008

Abstract

The data in this paper are derived from questionnaires sent to seventy-five jurisdictions around the world.12 One limitation to obtaining data through a survey is the possibility of sample selection and response bias. While we acknowledge that this is a possibility, we believe from a detailed analysis of the responses received and the data obtained from the responses that this concern does not arise in this exercise. First, the jurisdictions were identified from various sources including the membership of The World Federation of Exchanges, the trade association of the exchange industry, which comprises fifty-four exchanges that account for over 97 percent of global stock market capitalization, and the affiliate and correspondent organizations of the federation (another fifty-five organizations).13 Potential respondents were also identified from the International Organization of Securities Commissions’ (IOSCO) membership, which comprises one hundred and ten securities commissions.14 Of the potential respondents, however, thirty-five transitional or frontier markets with more negligible market capitalization have been excluded because we believe that the possibility of sample selection bias is mitigated by the extent of total global market capitalization of the exchanges/jurisdictions that were sent survey questionnaires. Second, survey data were gathered for a final sample of twenty-five jurisdictions, which we believe to be an extremely good response rate in view of the very detailed confidential information required of the respondents. The jurisdictions participating in the study comprise sixteen exchanges and nine securities commissions from North, Central, and South America, Western and Eastern Europe, Africa, and Asia. There were no overlaps of exchanges and securities commissions. For reasons of confidentiality, we do not identify any particular jurisdiction due to the sensitive nature of some of the data collected and the potential for readers to identify specific organizations based on location. The geographic distribution of the exchanges is, however, presented in table 2, panel A. Finally, the survey questionnaires we designed were also vetted by Regulation Services, Inc. (Canada), SMARTS, Inc. (Australia), the Singapore Stock Exchange, and the Australian Stock Exchange to ensure that the possibility of sample selection bias is further mitigated by the breadth of information obtained. The questionnaires were directed toward the Head of the Surveillance Departments in the exchange and/or securities regulators in the jurisdiction.