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The Future Prospects for National Financial Markets and Trading Centres

Author

Listed:
  • Charles Gaa
  • Stephen Lumpkin
  • Robert Ogrodnick
  • Peter Thurlow

Abstract

This paper investigates the effects of the continuation of globalization and technological developments on the future of national-level financial markets and trading centres, particularly in smaller countries such as Canada. We foresee the development of a single global market in the most-liquid assets based on equity-market linkages. Thus, we see this global market being accessed by national-level trading centres. Moreover, we see a remaining role for national-level intermediated markets for less-liquid products. This could pose some problems as the scale of the latter could diminish over time.

Suggested Citation

  • 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.
    • Handle: RePEc:bca:bocawp:01-10
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    References listed on IDEAS

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    1. Hancock, Diana & Humphrey, David B. & Wilcox, James A., 1999. "Cost reductions in electronic payments: The roles of consolidation, economies of scale, and technical change," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 391-421, February.
    2. Berger, Allen N. & Demsetz, Rebecca S. & Strahan, Philip E., 1999. "The consolidation of the financial services industry: Causes, consequences, and implications for the future," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 135-194, February.
    3. William R. White, 2000. "What have we learned from recent financial crises and policy responses?," BIS Working Papers 84, Bank for International Settlements.
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    Cited by:

    1. Jens Köke & Michael Schröder, 2003. "The Prospects of Capital Markets in Central and Eastern Europe," Eastern European Economics, Taylor & Francis Journals, vol. 41(4), pages 5-37, July.
    2. Iftekhar Hasan & Heiko Schmiedel, 2004. "Do networks in the stock exchange industry pay off? European evidence," International Finance 0405002, University Library of Munich, Germany.
    3. 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.
    4. Cécile Carpentier & Jean-François L'Her & Jean-Marc Suret, 2007. "Competition and Survival of Stock Exchanges: Lessons From Canada," CIRANO Working Papers 2007s-26, CIRANO.
    5. Helen Allen & John Hawkins & Setsuya Sato, 2001. "Electronic trading and its implications for financial systems," BIS Papers chapters, in: Bank for International Settlements (ed.), Electronic finance: a new perspective and challenges, volume 7, pages 30-52, Bank for International Settlements.

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    More about this item

    Keywords

    Financial markets;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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