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.
Journal of Financial Crime – Emerald Publishing
Published: Jul 18, 2008
Keywords: Market system; Law enforcement; Canada