Evolution And Development Of The U.S Securities Market Stucture

The American stock market has existed for over200years and realized a spiralimprovement in a course of alternating crisis and prosperity, coupled withincreasingly complex structure and comprehensive functions. As for the evolutionarytrend of stock market, it has changed from simple to complex, from chaos to order,and from junior to senior. America stock market has developed into a giant marketsystem with a structure of multiple layers, diversified participants, abundant productsand derivatives, strict trading mechanism and organization, rigorous supervision andprotection policies for investors. As for the historical experience in the evolution ofAmerican stock market, as economy develops, the development of stock market isusually reflected in the change of its structure according to economic demand for itsfunctions. When stock market develops to a certain level, irrationality in currentstructure of stock market becomes a limiting factor for development, and the stockmarket may experience huge fluctuation. This requires the change and reorganizationof elements in structure, so as to adapt to the need for development and graduallycomplicate and rationalize its structure during constant development. The degree ofdevelopment of national stock market is reflected not only in the expansion of amountor scale, but also more importantly in the rationality of structure, and efficiency of theresulting functions. Rationality in the structure of stock market should be reflected inthe improvement of market functions and efficiency.In this dissertation, By tracing back to the historical route for the development ofAmerican securities market, the paper sorts out the logic and basic belief of modernsecurities market development, investigate the basic driving force to promotesecurities market development and market structural evolution, and analyses how thesecurities market structure realizes self improvement and self upgrading under thedriving of technical progress, institutional changes and adequate market competition. To be more specific, with the evolution and development of securities marketstructure as the basic clue, the paper carries out historical investigation and analysison the evolution and development of the American securities market structure fromthe three dimensions of macroscopic view, microscopic view and institution.According to the investigation and analysis, the paper holds that, of various factorsinfluencing the evolution and development of the American securities marketstructure, institution and technology are most important and play the decisive role. Ofcourse, the functional mechanisms of the two are different: under some circumstances,the effects of technical revolution are more direct and obvious, however, more often,the effects of institutional changes are decisive and fundamental. The standard tojudge American securities market structure is whether it can reduce transaction cost,because, as the sum of securities transaction relation, the efficiency of securitiesmarket is mainly represented at reducing costs and promoting transaction. In otherwords, during the change process of institution and technology, all improvements thatreduce transaction costs are regarded as efficient Pareto improvement, which shallgive rise to changes to the securities market structure. The paper holds that, during theevolution and development of the American securities market structure, the economicdevelopment is basis to promote the evolution and development, competition is thedriving force to promote the evolution and development, reducing transaction costs isthe objective to promote structural development, reinforcing regulations is the routeto promote securities exchange improvements, the application of modern scientifictechnology is the means to promote market evolution, and the internationalization isthe inevitable result of securities exchange evolution. As per the paper, in thesecurities market, the government should not play the role of forecasting whichinnovation will be the new development route, but constructing a basic institution tosupport market participant, and promote technical progress and innovation byprotecting competition. This is because promoting market competition is the mostimportant means to improve market efficiency and protect the benefits of investors.The three viewpoints are innovations to the theoretical perspectives of the paper. Thepaper holds that, although the national conditions of China determine that we can notcopy the structural model of American securities market, China can learn from many of its successful experience while adjusting and optimizing the securities marketstructure of China. The final chapter of the paper, that is,“evolution of Chinasecurities market and status analysis, puts forward many policy suggestions from bothmacroscopic view and microscopic view on how to construct multi-layered securitiesmarket system and promote the corporatization revolution of securities exchanges,which may have certain reference value.