Sociology of Finance Research Papers (original) (raw)
In the late 1990s and early 2000s a wave of Ponzi schemes swept through Papua New Guinea, Australia, and the Solomon Islands. U-Vistract, the most notorious scheme, along with other fast money schemes, attracted 300,000 investors,... more
In the late 1990s and early 2000s a wave of Ponzi schemes swept through Papua New Guinea, Australia, and the Solomon Islands. U-Vistract, the most notorious scheme, along with other fast money schemes, attracted 300,000 investors, enticing them with promises of 100 percent interest to be paid monthly. Its founder, Noah Musingku, was a charismatic leader who promoted the scheme as a form of Christian mission and as the basis for establishing an independent kingdom.
Fast Money Schemes uses in-depth interviews with investors, newspaper accounts, and participant observation to understand the scheme’s appeal from the point of view of those who invested and lost, showing that organizers and investors alike understood the scheme as a way of accessing and participating in a global economy. John Cox delivers a “post-village” ethnography that gives insight into the lives of urban, middle-class Papua New Guineans, a group that is not familiar to US readers and that has seldom been a focus of anthropological interest. The book’s concern with understanding the interweaving of morality, finance, and aspirations shared by a global cosmopolitan middle class has wide resonance beyond studies of Papua New Guinea and anthropology.
Despite calls for reform of the credit rating industry and the argued need to reduce the influence of ratings on financial markets following the 2007/8 financial crisis, the major rating agencies continue to occupy a prominent place in... more
Despite calls for reform of the credit rating industry and the argued need to reduce the influence of ratings on financial markets following the 2007/8 financial crisis, the major rating agencies continue to occupy a prominent place in the global financial architecture. Instead of focusing on the technical or legal aspects of the ratings industry, this dissertation provides a sociological analysis of the role of the credit rating agencies in contemporary financial markets. By taking the social nature of markets as a starting point, and situating the emergence of the rating agencies within wider politico-economic developments over the last four decades, an analysis of the rating agencies is arrived at which places them at the heart of a regime of financial value-generation that revolves around the transformation of uncertainty into measurable risks. After outlining how the agencies, by contributing to a collective belief in the technical possibility of managing credit risk, formed part of the cognitive and social framework underpinning the expansion of the complex subprime credit market, the implications of the near-collapse of global credit markets in 2008 are discussed.
En un peu moins de 150 pages, cet ouvrage entend défendre une thèse pour le moins ambitieuse : le Brexit, tout comme les élections de Trump et Bolsonaro, marque l’avènement d’un nouveau régime politique (« libertarien-autoritaire »)... more
En un peu moins de 150 pages, cet ouvrage entend défendre une thèse pour le moins ambitieuse : le Brexit, tout comme les élections de Trump et Bolsonaro, marque l’avènement d’un nouveau régime politique (« libertarien-autoritaire ») soutenu par les acteurs d’un nouveau mode d’accumulation (la « seconde financiarisation »). À partir du relevé des dons versés en faveur du leave et du remain, d’articles de presse et des biographies des principaux acteurs, les deux auteurs, sociologues de la finance, proposent ainsi une analyse matérialiste originale, s’écartant du récit habituel de la « fracture sociale » : selon eux, ce ne sont pas les laissés-pour-compte de la mondialisation qui ont permis le Brexit, mais une fraction du patronat financier. Les trois parties de l’ouvrage s’attèlent assez logiquement à démontrer 1) l’émergence d’un nouveau mode d’accumulation et de son groupe social, 2) les raisons et canaux de la prise de position de ce dernier en faveur du leave, 3) le projet politico-économique plus large qui en découle… et qui nous attend.
Title: Last Sessions at the Palais Brongniart (1988 and 1998) The disappearance of the public auction market is viewed as resulting from the modernization of the Parisian financial sector by the mid-1980s. Two markets are concerned:... more
Title: Last Sessions at the Palais Brongniart (1988 and 1998)
The disappearance of the public auction market is viewed as resulting from the modernization of the Parisian financial sector by the mid-1980s. Two markets are concerned: first, the stock market that closed in 1988, which is studied on the basis of filmed archive documents centered on a symbolic action staged as a funeral; second, the derivatives market that disappeared in 1998. It is studied on the basis of ethnographic surveys carried out at Palais Brongniart during a period marked by strikes of salaried and independent employees. These social and symbolic actions are responses to the destructive and re-founding events that these closures represent. They are largely determined by the all-encompassing frameworks and socio-institutional histories. They depict a specific social period and have in common the fact of being unique in each of these local histories. Be they peaceful or conflictual, these actions must be regarded as counter-events rather than rituals or simple strikes. They are also the premise of enchanting accounts that will construct the past in a regretful mode and an institution golden age in memories and accounts of post-closure days.
If speech can—in the famous argument of J. L. Austin—not only be true or false, but also do things, what about economic models? And what about when models go wrong, or actually undermine their own assumptions? Black–Scholes, gamma traps... more
If speech can—in the famous argument of J. L. Austin—not only be true or false, but also do things, what about economic models? And what about when models go wrong, or actually undermine their own assumptions? Black–Scholes, gamma traps and gaming—a typology of the perverse effects of some key financial tools.
The emerging field of token engineering aims to open “economy itself as design space,” using blockchains and other distributed ledger and smart contract tech- nologies in combination with game theory and behavioral economics. This paper... more
The emerging field of token engineering aims to open “economy itself as design space,” using blockchains and other distributed ledger and smart contract tech- nologies in combination with game theory and behavioral economics. This paper describes the emergence of the Ethereum network as the principle site for the development of a cryptographically tokenized mode of economic life, and the re- construction of human economic agency along game-theoretic lines in the figure of Homo cryptoeconomicus. The paper draws together questions from the econo- mization and marketization, materiality and human/non-human agency programs in economic sociology: token engineering represents both a new field of practice for a self-consciously performative economics, and a potential point of intervention for a practice-oriented mode of social studies of finance.
This chapter describes and problematizes the specific turn to assetization that patents have taken, more specifically, the transfiguration of patents into speculative financial assets. Whereas intellectual property rights are commonly... more
This chapter describes and problematizes the specific turn to assetization that patents have taken, more specifically, the transfiguration of patents into speculative financial assets. Whereas intellectual property rights are commonly presumed to be key assets in the so-called knowledge economy, the mechanisms by which they are transformed and performed as assets are less examined. This chapter takes a closer look into the ways in which patents are turned into assets by practices and specific knowledge techniques both in and outside of law. With an emphasis on the processes of legal and financial abstractions, it identifies and discusses the modes and practices in which patents act and are transacted as assets that go beyond practices of commodification and monopoly rent-seeking: in patent portfolios, as real options and as instruments of financial hedging. Whereas law has enabled the creation of a market in patents as assets, the argument is that it has now become a financialized market object itself.
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities... more
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately.
Bingo is a distinct, enduring but understudied form of gambling. It provides comfort and pleasure to many of its players while also causing harm to some. While traditionally seen as low harm, it is being reshaped by technological and... more
Bingo is a distinct, enduring but understudied form of gambling. It provides comfort and pleasure to many of its players while also causing harm to some. While traditionally seen as low harm, it is being reshaped by technological and regulatory change. Despite this, there is no recent overview of the literature on bingo. In response, this narrative review explores the development of literature on bingo since the 1980s, first providing a chronological overview of writing on bingo and then a brief account of major themes in the literature. The literature reviewed was primarily identified through searches of academic databases using search terms such as betting, bingo, electronic and gambling. We find that bingo research makes a number of important contributions: it allows better understanding of groups of overlooked gamblers, corrects biases in gambling literature against bingo as a site of study, highlights the importance of social and structural factors in understanding gambling and employs methodological approaches that are congruent with the people and practices being studied. Additionally, it provides new perspectives on gambling in terms of skill, affect, harm and control and offers a distinct viewpoint to analyse gambling and other phenomena.
- by John Cox and +1
- •
- Gambling Studies, Bingo, History of Gambling, Women and Gender Studies
The article radically challenges the conventional view of modern banking as financial intermediation and rejects the mutually-related notion, firmly entrenched in both the mainstream and alternative imaginary, of fractional reserve... more
The article radically challenges the conventional view of modern banking as financial intermediation and rejects the mutually-related notion, firmly entrenched in both the mainstream and alternative imaginary, of fractional reserve banking. By contrast, it argues that modern banks are peculiar financiers which, far from banking other people's money, are originally and primarily involved with making money by creating a most fundamental institution of capitalism: liquidity. Crucially, central to the bank-engendered creation of liquidity is a negotiation of value that does not involve any formal lending of cash by a creditor - in fact, it does not require a creditor at all. Instead, it relies on a quid pro quo of debts performed by means of discounting whereby a regime of fluid property relations of mutual indebtedness, commonly known as debt finance, is established. In this regime of liquidity money is constructed as entirely a debtors' money: it is the outcome of a process of monetisation of bank debts entangled with a capitalisation of other people's debts.
The financialization of art merits the attention of social scientists studying finance for a number of reasons. First of all, in spite of the fact that the investment potential of art has long been recognized (section one), its recent... more
The financialization of art merits the attention of social scientists studying finance for a number of reasons. First of all, in spite of the fact that the investment potential of art has long been recognized (section one), its recent financialization has been resisted by both members of the art world and of the financial markets. Members of the art world have opposed the definition of art as an asset class and the commensuration efforts which this definition entails (see second section). Members of the financial community, in contrast, have hesitated to recognize art as a valid asset class because of the art market's lack of liquidity, transparency, and standardization. Their opposition has, however, gradually eroded in a three-stage process of increasing rationalization and scientization of the market. As part of this process, art investment has been legitimated by adopting role models, organizational blueprints, and market devices from the world of finance (section three). Economists have played a key role in this process of rationalization and scientization: they have developed art price indexes that, by rendering art recognizable as an asset class, function as boundary objects (see fourth section). But in spite of the market-making efforts of economists and other "institutional entrepreneurs" (c.f., Battilana, Leca, and Boxenbaum 2009), the financialization of art is hardly complete. This is predominantly caused by continuing information asymmetries and failure to construct liquidity in art markets (section five). [Excerpt]
Title: France’s Open Outcry on Nicknames and Their Use on Financial Futures Markets: Social Control, Fluid Relations, and Collective Representations. The starting point of this article was an ethnographic study conducted in 1997-1998 on... more
Title: France’s Open Outcry on Nicknames and Their Use on Financial Futures Markets: Social Control, Fluid Relations, and Collective Representations.
The starting point of this article was an ethnographic study conducted in 1997-1998 on the open outcry markets of the Matif (International term markets of France) located at the Brongniart Palace, the site of the Paris stock exchange. The idea arose that the systematic study of nicknames and their use might contribute to assessing the affect of social factors on operating of this type of market as well as the degree of social and cultural autonomy of the people directly involved in running them. An examination of motives and lexical fields brought to light local collective representations focused on professional practices as well as a generational social imagination through numerous references to “media culture”. In conclusion, the author emphasises the ease of interpersonal relations suggested by nicknames as well as the creativity involved in their use for the people working in the physical and social setting of these markets.
À la différence de son précédent ouvrage1, ce petit livre du sociologue Benjamin Lemoine se présente davantage comme une intervention très documentée dans le débat public que comme une contribution scientifique. Pamphlet aux tonalités... more
À la différence de son précédent ouvrage1, ce petit livre du sociologue Benjamin Lemoine se présente davantage comme une intervention très documentée dans le débat public que comme une contribution scientifique. Pamphlet aux tonalités marxistes, il invite à déverrouiller le champ des possibles en matière de financement de l’État. Sa principale cible est donc le discours dominant selon lequel seule la mise en marché de la dette publique est capable d’informer sur la valeur d’un État et de le responsabiliser (en lui imposant le « vrai coût » de ses dépenses). Les importantes interventions publiques lors de la crise sanitaire ont fragilisé ce discours, dévoilant des brèches que ses partisans aspirent à refermer au plus vite et que ce livre entend exploiter pour dénaturaliser « l’ordre de la dette » et ouvrir la voie à des alternatives.
This chapter focuses on the client–operator relationship in a Bank of the Credito Cooperativo system (BCC; Mutual Bank thereafter), a bank characterized by a strong link with the territorial identity, interlocked with a particular... more
This chapter focuses on the client–operator relationship in a Bank of the Credito Cooperativo system (BCC; Mutual Bank thereafter), a bank characterized by a strong link with the territorial identity, interlocked with a particular activation of trust in the face-to-face client–operator interaction in the branches. Following the mutuality rules, all the BCC banks have to respect territorial boundaries. Moreover, they have few decisional levels and a simple organizational structure. These elements facilitate the ‘embeddedness’ of operators in the social and economic context in which they operate. The possibility for clients to become members, a low standardisation, a contained use of ITC in risk assessment and in sharing information on financial products, are the main features that configure the situated interactions between client and operator.
This essay identifies two approaches to theorizing the relationship between financialization and contemporary art. The first departs from an analysis of how market logics in non-financial spheres are being transformed to facilitate... more
This essay identifies two approaches to theorizing the relationship between financialization and contemporary art. The first departs from an analysis of how market logics in non-financial spheres are being transformed to facilitate financial circulation; the other considers valuation practices in financial markets (and those related to derivative instruments in particular) from a socio-cultural perspective. According to the first approach, the contemporary art market is in theory a hostile environment for financialization, although new practices are emerging that are increasing its integration with the financial sphere. The second approach identifies socio-cultural similarities between the logics by which value is extracted, amplified, and distributed through derivative instruments and contemporary art. The two approaches present a discrepancy: on the one hand, contemporary art functions as an impediment to outright financialization because of market opacity; on the other, contemporary art represents a socio-cultural analog to derivative instruments. The essay concludes by setting out the terms for a more holistic understanding of contemporary art's relationship to financialization, which would enable an integration of its economic and socio-cultural dimensions.
Bilder über die eigene Zukunft können zerstörerisch sein. Entlang der Konzepte der selbsterfüllenden und der selbstzerstörenden Prophezeiung zeigt der Beitrag auf, wie Organisationen aufgrund von Vorhersagen aus der Ordnung geraten und... more
Bilder über die eigene Zukunft können zerstörerisch sein. Entlang der Konzepte der selbsterfüllenden und der selbstzerstörenden Prophezeiung zeigt der Beitrag auf, wie
Organisationen aufgrund von Vorhersagen aus der Ordnung geraten und scheitern können. Zentrales Element in seiner Argumentation ist das aus der Religionssoziologie entlehnte Konzept der Realitätsverdopplung. Prophezeiungen stellen
dabei eine konkurrierende Realität zu der zunächst vorherrschenden Sicht auf eine Organisation dar. Welche zerstörerische Kraft in diesen Alternativordnungen von Wirklichkeiten liegen können, wird entlang zwei konkreter Fallstudien dargestellt: Die Fusion von DaimlerChrysler und der "bank run" auf Northern Rock.
La financiarisation, en fractionnant le salariat, en généralisant l'endettement et en laissant à penser que la propriété s’était universalisée, a modifiéles rapports entre groupes sociaux, transformé les formes de conflits, ainsi... more
La financiarisation, en fractionnant le salariat, en généralisant l'endettement et en laissant à penser que la propriété s’était universalisée, a modifiéles rapports entre groupes sociaux, transformé les formes de conflits, ainsi que les modes de représentation politique. L’objectif de cette introduction est de suggérer, à partir d’enquêtes empiriques, des pistes de réflexion sur ce que fait la financiarisation aux modes de division du monde social. L’analyse de la société en termes de classes antagonistes, longtemps centrale en sciences humaines, s’est estompée. Or, depuis la crise économique, la question de la dette – sa marchandisation par le capital financier tout comme les formes d’ascension sociale ou de surendettement populaire qu’elle engendre – ravive le vieux problème de la définition des classes sociales et permet de comprendre comment les rapports entre les classes ont évolué sous l’action du capital financier. Il s’agit d’analyser les dynamiques de formation des groupes sociaux mais aussi les jeux de consolidation et de déstabilisation de ces groupes. Mais cet exercice réflexif sur les catégories en jeu s’accompagne, dans le même mouvement, d’une visée descriptive réaliste, c’est-à-dire capable de distinguer les degres de réalité pris par tel ou tel groupe, d’évaluer les asymétries, et d’analyser les rapports de force entre groupes et catégories sociales. Les conditions d’existence des populations, brouillées par le recours massif au crédit dans de nombreux pays, ont largement été transformées par la financiarisation de l’économie. Celle-ci donne une consistance, temporaire et fragile, à l’idéal politique – porté notamment par les gouvernements successifs de centre-gauche et de centre-droite – d’une société sans classes, dont l’un des centres de gravité serait la petite propriété et la classe moyenne étendue à tout le corps social.
Análisis de la importancia que tienen los proyectos de inversión, como un instrumento básico, en a implantación del sistema y en la ejecución de los planes, tanto en la obtención de resultados económicos, como sociales satisfactorios, de... more
Análisis de la importancia que tienen los proyectos de inversión, como un instrumento básico, en a implantación del sistema y en la ejecución de los planes, tanto en la obtención de resultados económicos, como sociales satisfactorios, de acuerdo con los propósitos de la planeación.
La materialización de los planes demanda el gasto de recursos y la canalización de éstos acorde con los objetivos previstos. Destinar recursos para la ejecución, depende de la cantidad de recursos que el estado genera o pueda conseguir interna y/o externamente y, además, de la movilización que pueda lograr de los recursos privados. En segundo termino, una vez contando con los recursos, la distribución que se haga de ellos presupuestalmente a los diversos sectores o áreas, debe responder a los objetivos y estrategias de los planes. Pero... ¿Cómo lograr esto? Ese es el quid del estudio conducente a tesis, que aquí se presenta.
Although new technologies of information and communication allow the emergence of new kinds of anonymous transactions that presumably do not need social ties to be performed, social ties are still relevant in financial markets even when... more
Although new technologies of information and communication allow the emergence of new kinds of anonymous transactions that presumably do not need social ties to be performed, social ties are still relevant in financial markets even when computerised trading seems more efficient. Need of getting first hand information about assets before the competitors and getting additional elements that allow framing public data seem to be factors that explain why ties survive in financial markets in the era of electronic trading.
‘@AP: Breaking: Two Explosions in the White House and Barack Obama is injured’. So read a tweet sent from a hacked Associated Press Twitter account @AP, which affected financial markets, wiping out $136.5 billion of the Standard & Poor’s... more
‘@AP: Breaking: Two Explosions in the White House and Barack Obama is injured’. So read a tweet sent from a hacked Associated Press Twitter account @AP, which affected financial markets, wiping out $136.5 billion of the Standard & Poor’s 500 Index’s value. While the speed of the Associated Press hack crash event and the proprietary nature of the algorithms involved make it difficult to make causal claims about the relationship between social media and trading algorithms, we argue that it helps us to critically examine the volatile connections between social media, financial markets, and third parties offering human and algorithmic analysis. By analyzing the commentaries of this event, we highlight two particular currents: one formed by computational processes that mine and analyze Twitter data, and the other being financial algorithms that make automated trades and steer the stock market. We build on sociology of finance together with media theory and focus on the work of Christian Marazzi, Gabriel Tarde and Tony Sampson to analyze the relationship between social media and financial markets. We argue that Twitter and social media are becoming more powerful forces, not just because they connect people or generate new modes of participation, but because they are connecting human communicative spaces to automated computational spaces in ways that are affectively contagious and highly volatile.
In this article, I examine how artifacts of social-science research were incorporated into survival strategies of poor residents of the global South in the 1990s under neoliberalism. I draw on ethnographic research in Cairo among bankers,... more
In this article, I examine how artifacts of social-science research were incorporated into survival strategies of poor residents of the global South in the 1990s under neoliberalism. I draw on ethnographic research in Cairo among bankers, borrowers, and nongovernmental-organization (NGO) members to engage recent debates in anthropology about finance and knowledge practices. I argue that the incorporation of “best practices” and microenterprise lending into banking in Egypt helped create a new kind of “multiplier effect” related to the one made famous by John Maynard Keynes in economics and to the conviction among some Egyptians that research artifacts held the key to improvement of their life chances.
In this chapter, I describe the role of storytelling as a framing device for helping to manage information flows in financial markets. In doing so, I draw on Michel Callon’s conceptual discussion of the importance of framing to the... more
In this chapter, I describe the role of storytelling as a framing device for helping to manage information flows in financial markets. In doing so, I draw on Michel Callon’s conceptual discussion of the importance of framing to the success of market-based exchange relationships. Callon has argued that frames imposed on phenomena and their relationships can disentangle things and render them calculable. To summarize his arguments, I begin with Callon’s discussion on framing in financial markets (1998b, 1999), in order to highlight the neglected role of storytelling in the framing of market phenomena and overflow management in financial markets. I then take this theoretical conversation with Callon to Istanbul, where I have conducted fieldwork research on the ways in which investors and brokerage firms have made sense of financial markets. I thereby demonstrate how storytelling has served to manage flows of information by generating and maintaining shared frames and interpretive templates (Czarniawska, 2008), and how these frames were subjected to occasional overflows. Callon has suggested that a market is a coordination device by which individuals can enter and leave the economic exchange as strangers (1998b, 1999). Frames, a notion Callon borrowed from Goffman (1974), can be seen as brackets or stabilizing devices which create ‘a clear and precise boundary’ (Callon, 1999: 187) among connections to be considered, and connections which can be ignored by actors in their calculations on market exchanges.
One thesis tends to prevail: we are all concerned with sovereign debt. A failure to repay sovereign debt would constitute a sanction and a prejudice to the entirety of the nation. Inclusive, social relations deployed around sovereign... more
One thesis tends to prevail: we are all concerned with sovereign debt. A failure to repay sovereign debt would constitute a sanction and a prejudice to the entirety of the nation. Inclusive, social relations deployed around sovereign debt—that is, its sale, distribution, trans- action, repayment or cancelation—engage all individuals through their savings. Debt holds society together as a whole, from the asset manager to “the grandmother” whose modest pension is invested in states bonds.
But are we really all equally concerned with sovereign debt products and problems? Sandy Brian Hager’s short and efficient book confronts this crucial democratic issue by describing the unequal social distribution of US sovereign bond ownership by corporations and individuals.
This paper analyzes the decision-making process in financial institutions through a case study of a cooperative bank in the Canary Islands facing a merger. Following the fictional expectations approach (Beckert, 2013), we studied the... more
This paper analyzes the decision-making process in financial institutions through a case study of a cooperative bank in the Canary Islands facing a merger. Following the fictional expectations approach (Beckert, 2013), we studied the published information and a participant observation of one of the decision-making assemblies. The results suggest that in conditions of uncertainty, when it is not possible to foreknow all the options, or to precisely estimate their probability, decisions
are made on the basis of their contribution to building a fiction which is consistent with the reference frameworks. In order to gain further knowledge of these processes it is suggested that the sources of credibility of the reference frameworks should
be further analyzed.
Si l’économiste s’intéresse à la valeur et si le sociologue se focalise sur les valeurs, un économiste financier et un sociologue analysant un même marché doivent en produire des descriptions très différentes. C’est ce qu’ont pu vérifier... more
Si l’économiste s’intéresse à la valeur et si le sociologue se focalise sur les valeurs, un économiste financier et un sociologue analysant un même marché doivent en produire des descriptions très différentes. C’est ce qu’ont pu vérifier les deux auteurs de cet article en prenant le cas des ETF (Exchange Traded Funds), un marché financier né récemment et en pleine expansion. Deux descriptions contrastées de ce marché ont été ainsi produites et ont donné lieu à une tentative de dialogue. Le financier voit le marché comme un ensemble de produits et de règlements qui ne sont que de simples réponses fonctionnelles aux besoins des investisseurs. Le sociologue voit, quant à lui, le marché comme une arène sociale. Dans le premier type de description, les acteurs sont réduits à leur rôle fonctionnel. La description sociologique semble plus riche, plus compréhensive, mais elle opère elle aussi des réductions et requiert au préalable une description financière.
This paper - based on a comparative study that investigated recruiting, integrating, and organizing mechanisms in financial services firms in the UK and Chile- argues that the notion of complexity contributes to the understanding of how... more
This paper - based on a comparative study that investigated recruiting, integrating, and organizing mechanisms in financial services firms in the UK and Chile- argues that the notion of complexity contributes to the understanding of how the embeddedness relationship between financial markets and social environments works. Three statements are developed:
Financial firms are embedded in social complexity: Elements involved in social complexity, such as uncertainty, number of competitors, modes of connection in global scale, anonymity, social diversity and mobility, stimulate more sophisticated methods of recruitment, organizational diversity, and standardization.
Financial firms are embedded in financial complexity: Organizational change is strongly related to change in the nature of financial products and evolution of financial analysis and trading.
Social and financial complexity are related: A less complex social environment, like that of Chile, prevents emergence of more complex financial services and products, such as most derivatives.