Globalization of financial markets

Abstract

This paper examines the incentives for and impediments to globalization of financial markets. First, incentives for an optimal ownership structure, its implications for geographic dispersion of owners, and the implications for the derived demand for global trading in the firm's shares are analyzed. After a brief survey of the operating procedures and regulatory environments of the New York, London and Tokyo exchanges, various exchange rules, regulatory and tax parameters are analyzed from the perspective of contributing successful competition in a global market.