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In this chapter we review practice-based studies that have examined the ontological and epistemological conditions for producing strategy research that proves relevant to management practice. Drawing on these works, we argue that researchers inevitably adopt a scholastic point of view, which makes it impossible to capture directly the logic of strategy practice. However, scholars can increase the practical relevance of their research by developing theories based on practical logic. We have outlined three approaches to capture the logic of management practice (1) theorizing through practical rationality, (2) the application of ‘participant objectivation’, and (3) the consideration of the dissociation process. We argue that if strategy-as-practice research builds on these insights, it can prove a particularly fruitful approach to generate knowledge that is of conceptual relevance to strategy practice.

We analyze the impact of foreign bank presence on foreign direct investment (FDI) in China. The connection between the two could be particularly relevant for an emerging economy like China because the supply of financial services provided by banks may act as a constraining factor. Foreign bank presence may then enable and foster FDI and not simply result from it. Our estimates demonstrate that FDI across regions in China is increasing in the existing network of regional branches of foreign banks, which itself is driven (and, therefore, instrumented) by the timing of the regional phasing out of the local limits for foreign banks on local currency business. The effect of foreign bank presence on FDI is particularly strong for some specific sectors (farming, manufacturing, construction, transportation, wholesale/retail trade and real estate) if those sectors are strongly represented in the source economies.Data source: Almanac of China's Finance and Banking

Because of the changes in the media industry over the last years, brand management has become a key issue. Media brands fulfill important functions to compensate media product characteristics, one of those being the need to address the audience as well as the advertising market. Accordingly, branding strategies have to be developed from the brand identity for both groups of customers while being considerate about the match of the evolving images. This approach offers benefits not only in the audience market, but to media companies and advertisers alike. Through laying emphasis on a brand’s exceptional contents, audiences and services, media companies can build up brand equity and differentiate themselves from competitors. Advertisers on the other hand profit from media brand activation and context leading to involvement of a distinct target group with the advertisement. Associations with the media brand are transferred to the commercial message, making it more credible and effective.

In recent years, Strategy as Practice has emerged as a distinctive approach for studying strategic management, organizational decision-making and managerial work (Whittington 1996 ; Johnson et al . 2003 ; Jarzabkowski et al . 2007 ). It focuses on the micro-level social activities, processes and practices that characterize organizational strategy and strategizing. This provides not only an organizational perspective into strategy but also a strategic angle for examining the process of organizing, and thereby serves as a useful research programme and social movement for connecting contemporary strategic management research with practiceoriented organizational studies. Strategy as Practice can be regarded as an alternative to the mainstream strategy research via its attempt to shift attention away from merely a focus on the effects of strategies on performance alone to a more comprehensive, in-depth analysis of what actually takes place in strategic planning, strategy implementation and other activities that deal with strategy. In other words, Strategy as Practice research is interested in the ‘black box’ of strategy work that once led the research agenda in strategic management research (Mintzberg 1973 ; Mintzberg and Waters 1985 ; Pettigrew 1973 ), but has thereafter been replaced by other issues, not least because of the increasing dominance of the micro-economic approach and a methodological preoccupation with statistical analysis. Because of its micro-level focus, studies following the Strategy as Practice agenda tend to draw on theories and apply methods that differ from the common practices of strategy scholars. In this way, Strategy as Practice research can contribute to the evolution of strategic management as a discipline and body of knowledge with new theories and methodological choices. It would, however, be a mistake not to link Strategy as Practice research to the broader ‘practice turn’ in contemporary social sciences. In fact, ‘practice’ has emerged as a key concept for understanding central questions about how agency and structure, and individual action and institutions are linked in social systems, cultures and organizations (Bourdieu 1990 ; Foucault 1977 ; Giddens 1984 ; de Certeau 1984 ; Sztompka 1991 ; Schatzki 2002 ). This practice turn is visible in many areas of the social sciences today, including organizational research (Brown and Duguid 1991 ; Orlikowski 2000 ; Nicolini et al . 2003 ). It is about time that we utilized this paradigm to enrich our understanding of organizational strategizing. ‘Practice’ is a very special concept in that it allows researchers to engage in a direct dialogue with practitioners. Studying practices enables one to examine issues that are directly relevant to those who are dealing with strategy, either as strategists engaged in strategic planning or other activities linked with strategy, or as those who have to cope with the strategies and their implications. By so doing, studies under this broad umbrella promise to accomplish something which is rare in contemporary management and organization research: to advance our theoretical understanding in a way that has practical relevance for managers and other organizational members. Like any emergent research approach, Strategy as Practice can either develop into a clearly defi ned but narrow theoretico-methodological perspective, or it can grow into an open and versatile research programme that is constantly stretching its boundaries. A key motivation behind this handbook is to

Leadership has been deemed, by some earlier scholars, to be less necessary in organizations that are knowledge-intensive. It has been assumed that because experts and professionals are driven largely by intrinsic motivation, extrinsic management and leadership factors are less important. We believe this assumption is wrong. Leaders have been shown in recent studies to have a considerable influence on organizational performance in universities, research institutes, hospitals and in high-skill sports settings. What matters, we argue, is the kind of leader. Experts and professionals need to be led by other experts and professionals, those who have a deep understanding of and high ability in the core-business of their organization. Our contribution will summarize the literature on the relationship between expert leaders and organizational performance, and then we will present a theory of expert leadership in a new model that outlines the possible transfer processes through which expert leaders generate better organizational performance.

Credit rating agencies are frequently criticized for producing sovereign ratings that do not accurately reflect the economic and political fundamentals of rated countries. This article discusses how the home country of rating agencies could affect rating decisions as a result of political economy influences and culture. Using data from nine agencies based in six countries, we investigate empirically if there is systematic evidence for a home bias in sovereign ratings. Specifically, we use dyadic panel data to test whether, all else being equal, agencies assign better ratings to their home countries, as well as to countries economically, politically and culturally aligned with them. While most of the variation in ratings is explained by the fundamentals of rated countries, our results provide empirical support for the existence of a home bias in sovereign ratings. We find that the bias becomes more accentuated following the onset of the Global Financial Crisis and appears to be driven by economic and cultural ties, not geopolitics.

This chapter discusses the question of whether audience members become loyal toward a media brand when sharing, liking or commenting on online media content—or are loyal readers more inclined to write comments on online articles or to like and share them? The aim is to answer this chicken-egg causality dilemma of the audience integration-loyalty relationship on a theoretical basis. Therefore, the concept of attitude-behavior consistency, the theories of reasoned action and planned behavior, involvement theory, uses and gratifications theory, and current research are reviewed. In conclusion, audience integration can be defined as behavioral dimension of loyalty and affects gratifications obtained that determine satisfaction, which in turn determines loyalty and future gratifications sought.

Over the last decade multi bi financing has become a significant source of funding for international development organizations. This paper first provides an overview of the underlying reasons of multi bi financing its underlying opportunities and challenges. For the first time the paper also makes use of a new multi bi aid dataset in order to provide a systemic view of multi bi aid trends. In addition the paper conducts the first statistical tests to assess in how far some problems typically discussed in the context of multi bi aid are empirically relevant. The findings of the paper are that multi bi aid can support harmonization among bilateral donors mobilizes additional donor resources and complements existing multilateral activities. However earmarked funds burden the multilateral system with additional transaction costs and risk a ``bilateralization'' of multilateral aid.

During the past decades business firms have started to engage in activities that have traditionally been regarded as actual governmental activities (Margolis & Walsh, 2003; Matten & Crane, 2005; Scherer & Palazzo, 2008a). This is especially true for multinational corporations (MNCs). They engage in public health, education, social security, and protection of human rights while often operating in countries with failed state agencies (Matten & Crane, 2005); address social ills such as AIDS, malnutrition, homelessness, and illiteracy (Margolis & Walsh, 2003; Rosen et al., 2003); define ethics codes (Cragg, 2005); protect the natural environment (Hart, 2005; Marcus & Fremeth, 2009); engage in self-regulation to fill global gaps in legal regulation and moral orientation (Scherer & Smid, 2000); and promote societal peace and stability (Fort & Schipani, 2004).

Elicitation methods in decision-making under risk allow us to infer the utilities of outcomes as well as the probability weights from the observed preferences of an individual. An optimally efficient elicitation method is proposed, which takes the inevitable distortion of preferences by random errors into account and minimizes the effect of such errors on the inferred utility and probability weighting functions. Under mild assumptions, the optimally efficient method for eliciting utilities and probability weights is the following three-stage procedure. First, a probability is elicited whose subjective weight is one half. Second, the utility function is elicited through the midpoint chaining certainty equivalent method using the probability elicited at the first stage. Finally, the probability weighting function is elicited through the probability equivalent method.

In binary choice between discrete outcome lotteries, an individual may prefer lottery L1 to lottery L2 when the probability that L1 delivers a better outcome than L2 is higher than the probability that L2 delivers a better outcome than L1. Such a preference can be rationalized by three standard axioms (solvability, convexity and symmetry) and one less standard axiom (a fanning-in). A preference for the most probable winner can be represented by a skew-symmetric bilinear utility function. Such a utility function has the structure of a regret theory when lottery outcomes are perceived as ordinal and the assumption of regret aversion is replaced with a preference for a win. The empirical evidence supporting the proposed system of axioms is discussed.

The article discusses a study that investigates the conditions under which corporate venture capital (CVC) investments promote the exploitive and explorative organizational learning of incumbents. The article argues that a program of CVC investments allows incumbents to learn different things than they would otherwise from studying single CVC transactions. The article hypothesizes that there is an inverted U-shaped relationship between the volume of the incumbent's CVC investments and exploitative and explorative organizational learning. The article also discusses core business relatedness, the autonomy of the CVC unit, and the absorptive capacity of the incumbent.

In empirical research on direct investments, Dunning's eclectic paradigm is widely accepted. While this paradigm serves as a theoretical basis for selecting possible explanatory variables, econometric specification usually is ad hoc. This paper shows the implications of the eclectic paradigm for the econometric estimation of investment determinants using firm-level data. The assumptions on the eclectic paradigm lead to a multiplicative model, which calls for a particular estimation strategy. In this way, the empirical analysis is coherently linked to the theoretical base. Furthermore, it becomes possible to systematically test the assumptions of the eclectic paradigm.

We study the relation of financial contracting and the pace of technological advance in a dynamic agency theoretic model. A firm which is financed by outside shareholders but run by managers has the prospect of a process innovation which arrives stochastically. Adopting the innovation requires firing old management and hiring new with skills appropriate for the new technique. We show that subgame perfect equilibria in this game can be of two types. In "entrenchment" equilibrium once the new technique has been announced old style management raises their dividend payout sufficiently to preempt the innovation. In "maximum rent extraction" equilibrium' managers are unable or unwilling to match the impending productivity improvement and instead respond by increasing their perquisites for the remaining time of their tenure. We show that both equilibria involve several types of inefficiencies and can resuit in underinvestment in positive NPV projects. We discuss the role of financial innovation in reducing the inefficiencies identified.

Over the last 20–30 years, many European governments have implemented reforms to improve the efficiency and competitiveness of their national higher education and research systems. They have granted universities more autonomy while introducing new accountability tools and fostering competition through performance-based funding schemes. The growing emphasis on productivity and efficiency has led to the diffusion of a variety of performance indicators, including publication and citation counts, and university rankings. Another approach increasingly applied in the higher education sector is frontier efficiency analysis. Similarly to university rankings, efficiency analyses include several indicators for research and teaching in order to assess the performance of a university or a university department. However, as opposed to most rankings, they relate the outputs to the inputs used and do not necessarily favor larger or richer institutions. Moreover, estimation techniques such as Data Envelopment Analysis (DEA) do not require any assumption about the form of the production function and allow for different factor combinations to achieve efficiency. The method thus accounts for the diversity among universities and does not necessarily penalize more teaching-oriented institutions as compared to research-oriented ones. In this contribution we present the frontier efficiency approach and its application to higher education, highlighting the main estimation techniques and methodological specifications. We provide an overview of studies that have applied DEA to the higher education sector and discuss their results, methodological contributions, and shortcomings. We conclude by identifying the advantages and limitations of frontier efficiency approaches as compared to other performance measures in higher education and delineating possible areas for further research.

This paper explores the effects of capital controls and policies regulating interest rates and the exchange rate in a model of economic transition applied to China. It builds on Song, Storesletten, and Zilibotti (2011) who construct a growth model consistent with salient features of the recent Chinese growth experience: high output growth, sustained returns on capital investment, extensive reallocation within the manufacturing sector, sluggish wage growth, and accumulation of a large trade surplus. The salient features of the theory are asymmetric financial imperfections and heterogeneous productivity across private and state-owned firms. Capital controls and regulation of banks’ deposit rates stifle competition in the banking sector and hamper the lending to productive private firms. Removing such regulation would accelerate the growth in productivity and output. A temporarily undervalued exchange rate reduces real wages and consumption, stimulating investments in the high-productivity entrepreneurial sector. This fosters productivity growth and a trade surplus. A high interest rate mitigates the disadvantage of financially constrained firms, reduces wages, and increases the speed of transition from low- to high-productivity firms.

Happiness research is one of the most vivid and fruitful parts of modern economics. The focus is on empirical findings. In contrast, theoretical work has been rather neglected. The paper deals with three areas needing more analytical work: the choice or imposition of comparison or reference groups; and the extent, speed and symmetry of adaptation to positive and negative shocks on happiness. In both areas, theoretical propositions are derived which can in the future be empirically tested. The third area relates to the political economy of happiness. Many governments intend to take the happiness index as a criterion of how successful their policies are. As a consequence, survey respondents get an incentive to misrepresent their happiness level, and governments to manipulate the aggregate happiness indicator in their favor. A country’s constitution must induce governments to carefully observe human rights, democracy, the decentralization of political decision making, and market institutions and provide people with the possibility to acquire a good education and find a suitable job.

This paper analyzes Pareto optimal non-linear taxation of profits and labor income in a private information economy with endogenous firm formation. Individuals differ in both their skill and their cost of setting up a firm, and choose between becoming workers and entrepreneurs. I show that a tax system in which entrepreneurial profits and labor income must be subject to the same non-linear tax schedule makes use of general equilibrium (or "trickle down'') effects through wages to indirectly achieve redistribution between entrepreneurs and workers. As a result, constrained Pareto optimal policies can involve low marginal tax rates at the top and, if available, input taxes that distort the firms' input choices. However, these properties disappear when a differential tax treatment of profits and labor income is possible. In this case, redistribution is achieved directly through the tax system rather than "trickle down'' effects, and production efficiency is always optimal.

Fifteen years of experience with the commercial cultivation of genetically modified (GM) corps and countless national and international risk assessments of genetically modified organisms (GMOs) suggest that the risks related to this new technology are not any different from those already known in conventional agriculture. Despite these reassuring findings, public distrust toward GMOs has not decreased. Europe has even further tightened its de facto ban on genetic engineering in agriculture and most African countries continue to be reluctant to approve any GM corps for commercial cultivation, even if they may prove to be particularly beneficial for small-scale farmers. In order to understand this puzzling situation, we have to look at the global controversy on GMOs in the larger historical context. Professional pressure groups against GMOs have their roots in the environmental movement of the 1970s. At that time they criticized the negative environmental consequences of the Green Revolution. By assuming that the current Gene Revolution would largely represent a repetition of the mistakes of the Green Revolution, they were able to shape the risk narrative of genetic engineering in agriculture to a great extent. As an alternative to GMOs, they advocate the concept of ‘food sovereignty’ which envisions a type of agricultural system that helps countries to ensure food security without having to rely on agricultural trade and the use of new technologies in agriculture. In this chapter we argue that this kind of bipolar world view of good and evil agriculture is unlikely to be helpful in addressing the multiple sustainability challenges of the twenty-first century because it tends to burn rather that build bridges between the actors that would be most suitable to join forces in the fight against hunger and climate change.

The article discusses the role of the UN Global Compact (UNGC) in the emerging global corporate social responsibility infrastructure. It evaluates the debate around the effectiveness and legitimacy of the UNGC alongside the arguments of its supporters and critics and thereby introduces the Thematic Symposium contributions. The article further identifies three theoretical perspectives that are used by scholars to discuss the performance of the UNGC: economic, socio-historical, and normative. It proposes that these perspectives can serve as generic distinctions with direct relevance for the evaluation of the UNGC. Once the perspective is chosen, it drives towards a certain purpose which implies assumptions and design features with regard to the UNGC. Finally, the article offers a future research agenda, emphasising the research needed on the UNGC in four areas: the identification of processes and influence mechanisms; legitimacy and effectiveness; local networks and regional development; and the interface of the UNGC and responsible leadership. Refereed/Peer-reviewed

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed life time. We use stochastic stability to identify the networks to which the network formation process converges and find that they are nested split graphs. We completely determine the topological properties of the stochastically stable networks and show that they match features exhibited by real-world networks. Using four different network datasets, we empirically test our model and show that it fits well the observed networks.

This paper analyzes the arguments that fixed exchange rates and financial markets can provide strong discipline over domestic macroeconomic policies. We conclude that such discipline works only under a rather limited set of circumstances. A key aspect of our analysis is the distinction between actual constraints and effects on incentive structures. Fixed exchange rates provide actual constraints only over monetary policy and only for hard fixes like common currencies, not adjustable pegs. With adjustable pegs the long run costs of excessive stimulus are increased, but the short run effects can often be more favorable as inflation is initially reduced due to the failure of traded goods prices to rise. The net effects on incentives would depend strongly on the government's discount rate. A low rate would be needed for positive discipline effects, but it is the high discount rate generated by short time political pressures that generate much of the incentive for inflationary surprises in the first place. Financial markets influence only incentive structures. Where markets also operate with short time horizons this can help loosen fiscal discipline in the short run by providing easy financing of deficits. Thus the effects on discipline depend heavily on the degree to which financial markets behave according to rational expectations. Arguments from behavioral finance suggest that this will not always be the case. An informal model is presented in which financial markets are too forgiving in the short run, but become more rational after the outbreak of crises serve as a wake up call. On this view financial markets provide strong discipline after crises break out, but not before. A number of episodes are examined that seem to fit with this story.

We model capital flows among Chinese provinces using a theory-based variance decomposition that allows us to gauge the importance of various channels of external adjustments at the regional level: variation in intertemporal prices—domestic and international interest rates and the real exchange rate—and intertemporal variation in quantities (cash flows of output, investment and government spending). We find that our simple framework can account for around 85 percent of the variation in regional capital flows over the 1985-2010 period. Our results suggest that the relative importance of private and state-owned enterprises, a province’s level of integration into the world economy and its sectoral composition play an important role for external adjustment vis-à-vis the rest of China and the world. Specifically, we find strong empirical support for the view that differential access of private and state-owned enterprises to finance is a key driver of China’s surpluses. We discuss implications of our results for global imbalances in capital flows.

In a model where banks play an active role in monitoring borrowers, we analyze the impact of securitization on bankers’ incentives across different macroeconomic scenarios. We show that securitization can be part of the optimal financing scheme for banks, provided banks retain an equity tranche in the sold loans to maintain proper incentives. In economic downturns however securitization should be restricted. The implementation of the optimal solvency scheme is achieved by setting appropriate capital charges through a form of capital insurance, protecting the value of bank capital in downturns, while providing additional liquidity in upturns.

In this paper, I discuss the interpretation of qualification related income differentials from income functions that control for age rather than the theoretically more appropriate variable years of labour market experience. I reestimate income functions for New Zealand that were originally reported by Maani (1997) with changed specification, and I update her results by also estimating an income function with data from the 1996 census.

Cultural heritage is a complex and elusive concept, constantly evolving through time, and combining cultural, aesthetic, symbolic, spiritual, historical and economic values. The Handbook on the Economics of Cultural Heritage outlines the contribution of economics to the design and analysis of cultural heritage policies and to addressing issues related to the conservation, management and enhancement of heritage.

Policy makers around the world seek to encourage generic substitution. In this paper, the importance of prescribing physicians' imperfect agency is tested using the fact that some Swiss jurisdictions allow physicians to dispense drugs on their own account (physician dispensing, PD) while others disallow it. We estimate a model of physician drug choice with the help of drug claim data, finding a significant positive association between PD and the use of generics. While this points to imperfect agency, generics are prescribed more often to patients with high copayments or low incomes. Policy makers around the world seek to encourage generic substitution. In this paper, the importance of prescribing physicians’ imperfect agency is tested using the fact that some Swiss jurisdictions allow physicians to dispense drugs on their own account (physician dispensing, PD) while others disallow it. We estimate a model of physician drug choice with the help of drug claim data, finding a significant positive association between PD and the use of generics. While this points to imperfect agency, generics are prescribed more often to patients with high copayments or low incomes.

This paper explores how extended unemployment insurance (UI) benefits targeted to older workers affect early retirement and social welfare. We argue that the analysis of UI's tradeoff between consumption smoothing and moral hazard needs to consider the entire early retirement system, which often consists of extended UI and relaxed access to disability insurance (DI). We argue that extended UI generates program complementarity (higher future take-up of DI and/or regular retirement benefits) or program substitution (lower contemporaneous take-up of DI benefits). Exploiting Austria's regional extended benefit program, which extended regular UI benefits to up to 4 years, we find: (i) program complementarity is quantitatively important for workers aged 50+; and (ii) program substitution is quantitatively relevant for workers aged 55+. We derive an optimal UI formula in the spirit of Baily (1978) and Chetty (2006) that features program complementarity and program substitution. Using the sufficient statistics approach, we conclude that UI for older workers was too generous and the regional extended benefit program was a suboptimal policy.

This chapter reviews research in which economic laboratory experiments are used to shed light on the processes that influence organizational formation and change. An organization, in these experiments, is represented by an abstract collective production activity that takes place in a controlled laboratory setting with incentivized human subjects. The studies typically attempt to identify factors that enhance efficient production and coordination. Our review focuses on studies that explore key features of how organizations originate, grow, and implement change, and the roles of communication and leadership in managing these processes. Our survey concludes that laboratory experiments of this type present a useful way to identify important factors that influence the relationship between individual behaviors and organizational performance at critical stages, which might otherwise be difficult to isolate outside the laboratory. Moreover, this research presents a valuable complement to traditional approaches in organizational research.

We develop a model that captures, at the same time, the temporal dynamics of single-firm credit risk and the contagion across banks via a network of obligations and common assets. In particular, we enrich the continuous-time modelling approach of default by accounting explicitly for the procyclical loop between asset prices and leverage. Contagion can spread well before any default occurs, through the value of the obligations held by counterparties. Moreover, the extent of procyclicality effects depends explicitly on the structure of both the interbank network and the asset bank network. We analyse the model in a simplified scenario of a densely connected core of banks and we carry out a systematic investigation of how procyclicality emerges from the multiplicative interplay of market illiquidity and tightness of capital requirements.

A number of OECD countries aim to encourage work integration of disabled persons using quota policies. For instance, Austrian firms must provide at least one job to a disabled worker per 25 nondisabled workers and are subject to a tax if they do not. This “threshold design” provides causal estimates of the noncompliance tax on disabled employment if firms do not manipulate nondisabled employment; a lower and upper bound on the causal effect can be constructed if they do. Results indicate that firms with 25 nondisabled workers employ about 0.04 (or 12%) more disabled workers than without the tax; firms do manipulate employment of nondisabled workers but the lower bound on the employment effect of the quota remains positive; employment effects are stronger in low-wage firms than in high-wage firms; and firms subject to the quota of two disabled workers or more hire 0.08 more disabled workers per additional quota job. Moreover, increasing the noncompliance tax increases excess disabled employment, whereas paying a bonus to overcomplying firms slightly dampens the employment effects of the tax.

Global games with endogenous information often exhibit multiple equilibria. In this paper we show how one can nevertheless identify useful predictions that are robust across all equilibria and that could not have been delivered in the common-knowledge counterparts of these games. Our analysis is conducted within a flexible family of games of regime change, which have been used to model, inter alia, speculative currency attacks, debt crises, and political change. The endogeneity of information originates in the signaling role of policy choices. A novel procedure of iterated elimination of non-equilibrium strategies is used to deliver probabilistic predictions that an outside observer - an econometrician - can form under arbitrary equilibrium selections. The sharpness of these predictions improves as the noise gets smaller, but disappears in the complete-information version of the model.

The chapter analyzes how certain technological advances in securities and derivatives trading have escaped European Union market abuse and trade execution regulation. It analyzes how algorithmic trading and high-frequency trading can undermine market integrity and financial stability. Specifically, it discusses how the European Union and United Kingdom legislation and regulation has been inadequate to address these risks. It reviews proposed EU legislative reforms that will bring greater transparency to the trading of securities and derivatives with a view to reducing market abuse and exposing trading behavior that can lead to systemic shocks. The chapter argues however for a wider application of the transparency requirements to cover trading in most all financial instruments – on and off exchange – and for stricter oversight of algorithmic trading and other alternative trading systems.