Date Issued
2018
Description
This chapter examines the interactions of transnational business governance schemes regulating the global derivatives markets with multiple levels of interactions. The chapter describes the process of interactions via the theory of isomorphism. First, after examining the interactions of futures exchanges, we identify that governance techniques among futures exchanges are rather similar, illustrating the forces of mimetic and normative isomorphism. Second, the monopoly of the International Swaps and Derivatives Association (ISDA) scheme in the over-the-counter (OTC) market provides signs of mimetic isomorphism. Third, through imparity of market power and major market dealers, the ISDA scheme became the only governance scheme for the over-the-counter (OTC) market . This shows some signs of coercive isomorphism, though there may also exist a certain degree of divergence of development for certain rules.
Subject
Derivatives, financial regulations, ISDA, isomorphism, convergence
Disciplines
Asian Studies | Business Law, Public Responsibility, and Ethics | Business Organizations Law | Finance and Financial Management | Transnational Law
Document Type
Working Paper
Recommended Citation
Gao, Simin and Chen, Christopher, "Transnational Business Governance Interactions and Financial Regulation Change: A Case of Asian Financial Markets" (2018). Transnational Business Governance Interactions Working Papers. 29.
https://commons.allard.ubc.ca/tbgi/29
Included in
Asian Studies Commons, Business Law, Public Responsibility, and Ethics Commons, Business Organizations Law Commons, Finance and Financial Management Commons, Transnational Law Commons