Elgar original reference
Edited by Geoffrey Poitras
Introduction: Stock Market Globalization, Past and Present
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...