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Competition and Survival of Stock Exchanges: Lessons from Canada

Author

Listed:
  • Cécile Carpentier

    (Laval University, School of Accountancy and Cirano, Pavilion Palasis-Prince, 2325 Terrasse Street, Québec Canada, G1V 0A6, Canada)

  • Jean-François L'Her

    (Investment Policy Research, La Caisse de dépôt et placement du Québec, 1000, place Jean-Paul Riopelle, Montréal (Québec), Canada, H2Z 2B3, Canada)

  • Jean-Marc Suret

    (Laval University, School of Accountancy and Cirano, Pavilion Palasis-Prince, 2325 Terrasse Street, Québec Canada, G1V 0A6, Canada)

Abstract

We analyze the competition between two developed stock exchanges. Their development rests mainly on their capacity to attract securities and trades. The US market is attracting a growing number of Canadian companies and is capturing a growing portion of their traded value. This slide of trading toward the US market is a huge challenge for Canadian policy makers while the efforts to compete with the US market seem to be having only limited effects. We analyze the implications of this situation for policy makers in Asia-Pacific where several markets and financial centers are attempting to emerge.

Suggested Citation

  • Cécile Carpentier & Jean-François L'Her & Jean-Marc Suret, 2008. "Competition and Survival of Stock Exchanges: Lessons from Canada," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 255-286.
    • Handle: RePEc:wsi:rpbfmp:v:11:y:2008:i:02:n:s0219091508001349
    DOI: 10.1142/S0219091508001349
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    References listed on IDEAS

    as
    1. Stijn Claessens & Daniela Kingebiel & Sergio L. Schmukler, 2002. "Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centres," WIDER Working Paper Series DP2002-94, World Institute for Development Economic Research (UNU-WIDER).
    2. Craig Doidge & G. Andrew Karolyi & Rene M. Stulz, 2007. "Has New York Become Less Competitive in Global Markets? Evaluating Foreign Listing Choices Over Time," NBER Working Papers 13079, National Bureau of Economic Research, Inc.
    3. Marano, Angelo, 2000. "Beyond The London-Frankfurt Dichothomy. What Space For The Other European Financial Centers?," ERSA conference papers ersa00p407, European Regional Science Association.
    4. Charles Gaa & Stephen Lumpkin & Robert Ogrodnick & Peter Thurlow, 2001. "The Future Prospects for National Financial Markets and Trading Centres," Staff Working Papers 01-10, Bank of Canada.
    5. Jenkinson, Tim & Ljungqvist, Alexander, 2001. "Going Public: The Theory and Evidence on How Companies Raise Equity Finance," OUP Catalogue, Oxford University Press, edition 2, number 9780198295990.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Securities exchange; competition; cross-listed securities;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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