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ERIC Number: ED411818
Record Type: Non-Journal
Publication Date: 1996
Pages: 7
Abstractor: N/A
Reference Count: N/A
Creating a Global Stock Exchange: Does the Present National System Have a Future?
Warner-Allen, Charles
Sovereignty and national pride throw up potentially the biggest obstacles in the path of a global stock exchange, being all the more insurmountable because of their bases in emotional politics as opposed to economic logic. A global stock exchange could come about if New York, London and Tokyo could consolidate their current baton-passing activity into a more formal, integrated arrangement--possibly creating a new super exchange on top of their existing domestic operations. There would need to be a single regulatory regime, with one set of trading rules dominating over those of individual nations. One of the Big Three could come to dominate globally. Thirdly, an existing smaller exchange could start to compete aggressively in the international market, taking advantage of technological developments, its existing domestic expertise and a supportive regulatory environment. Finally, then, businesses could create a completely new institution, along the lines of the screen-based international currency dealing operations of Reuters or Dow Jones Telerate. Technologically, a global stock exchange could happen now; the networks and computing power are available and there is already screen-based global trading in other markets--notably currency. Institutionally, it almost does happen now, through the activities of the Big Three--although this is not a single international operation. Politically, the trend towards the necessary relinquishment of national sovereignty that would be a prerequisite for a supra-national market is detectable. All three of these prerequisites--the technology, the institution and the political will--would need to be firmly in place before a global stock exchange actually came about. (AEF)
Publication Type: Reports - Evaluative; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A