Oxera

Inspiring better decisions through economics and finance

Articles
Depiction of Payment for Order Flow and a consolidated tape: the impact on retail investors
8 minute read

Payment for Order Flow and a consolidated tape: the impact on retail investors

The European Commission is proposing to introduce a consolidated tape with data on fixed income and equity transactions to help retail (and institutional) investors achieve ‘best execution’. It is also proposing to ban the practice of Payment for Order Flow (PFOF). What is PFOF, and what are the pros… Read More

Articles
Depiction of The ups and downs of vertical merger control: what’s the current state of play?
13 minute read

The ups and downs of vertical merger control: what’s the current state of play?

Recent years have seen renewed debate around vertical merger control. Authorities have been changing their guidance and competition headlines have been dominated by vertical mergers such as AT&T/Time Warner, Facebook/Giphy and Illumina/Grail. But exactly how has our collective economic understanding of vertical mergers evolved? And what role can economics play in competition policy practice? In May 2022, the Oxera Economics Council met to discuss these questions. Read More

Articles
Depiction of REPowerEU: managing energy supply and prices in the EU
10 minute read

REPowerEU: managing energy supply and prices in the EU

The current spikes in electricity and gas prices are raising concerns at the EU and national level. To mitigate their impact, while also increasing security of supply, the European Commission has introduced a variety of measures, which have been (and are being) applied at a national level. We ask how these measures should best be implemented to ensure their success, looking in particular at the case of Italy. Read More

Articles
Depiction of Grounded? The environmental implications of modal shift from air to rail
9 minute read

Grounded? The environmental implications of modal shift from air to rail

With growing pressure on economies to decarbonise in line with the 2015 Paris Agreement, transport—and particularly air transport—has come under increased scrutiny. Moving passengers from air to rail has been proposed as one way to decarbonise the sector. To this end, the EU and national governments have invested in high-speed rail lines and discussed restrictions on short-haul flights. But does rail always trump air from an environmental perspective? Read More

Articles
Depiction of Investor compensation: seeing the wood for the trees
8 minute read

Investor compensation: seeing the wood for the trees

What is the purpose of investor compensation schemes? When, to what extent, and to whom should compensation be paid? Peter Andrews, Oxera Partner, and Jonathan Haynes, former Oxera Partner, consider a complex case in the High Court of Ireland following the failure of investment firm Custom House Capital. They look at the policy issues, and ask how economic analysis can help courts to determine which interpretations of statute best reflect the intentions of the legislators. Read More

Articles
Depiction of To tax or not to tax: will an online sales tax rebalance the retail sector?
9 minute read

To tax or not to tax: will an online sales tax rebalance the retail sector?

The growth of online sales has prompted debate around whether an online sales tax (OST) should be introduced to ‘rebalance’ the taxation of the retail sector. Indeed, the evolution of retailing in the UK has implications for several key government policy areas. We revisit the topic, which we explored in a 2020 Agenda article, in light of the recent launch of an HM Treasury consultation on the introduction of an OST. Read More

Articles
Depiction of Where next for RPI – X?
11 minute read

Where next for RPI – X?

With concerns around company outperformance and information asymmetries playing strongly on the minds of economic regulators, the UK regulatory model has moved on from the ‘fixed price’ paradigm of ‘RPI - X’. Regulators have looked to set more challenging price settlements, while also rebalancing risks within regulatory contracts to protect against windfalls. The model now resembles the rate-of-return approach it was intended to replace. Is this the right way forward? And what alternatives might there be? Read More

Articles
Depiction of Squad goals: UEFA’s new financial regulations
3 minute read

Squad goals: UEFA’s new financial regulations

Yesterday (7 April 2022), following a lengthy review, UEFA announced that it has approved new UEFA Club Licensing and Financial Sustainability Regulations, which will impose a new approach to financial regulation on football clubs competing in UEFA competitions. Read More

Articles
Depiction of Bidding for a more sustainable future: carbon trading in the EU
7 minute read

Bidding for a more sustainable future: carbon trading in the EU

In the context of a rapid increase in global energy and carbon prices since September 2021, questions have emerged around the functioning of the EU carbon market and the role of carbon prices in public policy. How can we assess whether the carbon market is functioning well? What does the evidence tell us, and is there a need for further policy intervention? Read More

Articles
Depiction of Creating a market for negative emissions
6 minute read

Creating a market for negative emissions

As the curtain dropped on last year’s COP26 summit, many were heartened by the agreements made. Yet more needs to be done to fast-track the roll-out of negative emissions technologies that will be vital in addressing irreversible global damage from carbon emissions. Oxera research for Drax found a range of market design mechanisms through which these technologies could figure in the UK’s Emissions Trading Scheme. Angela Hepworth, Innovation Commercial Director at Drax Group, looks at the role of negative emissions technologies in reaching net zero targets. Read More

What's on your mind?

Get in touch to talk to our team