Handbook of Research on Stock Market Globalization

Handbook of Research on Stock Market Globalization

Elgar original reference

Edited by Geoffrey Poitras

The stock market globalization process has produced historic changes in the structure of stock markets, the effects of which are evident throughout the world. Despite these transformations, there are relatively few sources examining the connections between the globalization process currently under way and previous periods of stock market globalization. This seminal volume fills that gap.

Introduction: Stock Market Globalization, Past and Present

Geoffrey Poitras

Subjects: economics and finance, economic psychology, financial economics and regulation, money and banking


Geoffrey Poitras THE CURRENT STATE OF STOCK MARKET GLOBALIZATION The first decade of the twenty-first century has witnessed historic changes in the stock market. From the nineteenth century until near the end of the twentieth century, stock exchanges were organized nationally and featured mutual ownership by exchange members.1 In conjunction with a technological revolution in trading systems and communications, stock exchanges have also demutualized, that is, converted from mutual to corporate organization with publicly traded common stock. Following demutualization, various exchanges have engaged in an ongoing series of international mergers and acquisitions involving other exchanges, electronic communications networks (ECNs) and multilateral trading platforms (MTFs), derivatives exchanges, alternative trading systems and clearing organizations. In addition, the stock trading business has become increasingly competitive and a range of new products, such as exchange traded funds, have been introduced. New electronic trading platforms have emerged that are making the exchange trading floor obsolete for all but a small number of large block trades. The changes that have taken place in the organizational structure of stock exchanges are illustrated in the 2009 10-K audited financial statements for the largest global exchange group, NYSE Euronext: NYSE Euronext is a leading global operator of financial markets and provider of innovative trading strategies. We offer a broad and growing array of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, market data and commercial technology solutions, all designed to meet the evolving needs of issuers, investors, financial institutions and market participants. We are also...