Economics of Technology, Securities and Capital Markets

In this survey, I focus on the economic implications of FinTech innovation for securities and capital markets. I outline the key economic issues that have emerged in this area, review the literature that has studied these issues, and discuss open questions. The survey is structured around the key technological developments that affect capital market infrastructure and data analytics. The topics include electronic trading venues and high-frequency trading, blockchain technology, cloud computing, and machine learning and artificial intelligence. We further discuss new investment and financing tools, which were enabled by recent technological advances, such as exchange-traded funds and blockchain-based assets.