Measuring market integrity: a proposed Canadian approach

Abstract

Purpose

The purpose of this paper is to provide a conceptual viewpoint of the appropriate theoretical framework for measuring the integrity of capital markets from a regulatory/law‐enforcement perspective.

Design/methodology/approach

This paper discusses the metrics involved with the abstract concept of measuring the integrity of capital markets. References include measurement tools and measurement principles issued by academic institutions and relevant international organizations. Primary research was conducted by way of the Royal Canadian Mounted Police's Market Integrity Index research project.

Findings

The paper finds that there is an interplay of forces that determine the relative integrity of a given market over time.

Originality/value

This paper suggests that critiques of the efficacy of systemic market structure can be evaluated on a quantitative basis.

Citation

Fodor, B. (2008), "Measuring market integrity: a proposed Canadian approach", Journal of Financial Crime, Vol. 15 No. 3, pp. 261-268. https://doi.org/10.1108/13590790810882856