NCJ Number
116406
Journal
Corporate Practice Commentator Volume: 30 Issue: 3 Dated: (Fall 1988) Pages: 363-394
Date Published
1988
Length
32 pages
Annotation
This article discusses the economic theory of market development, applying it to the international marketplace and attempting to understand why market linkages are being created even though there is no apparent demand for them.
Abstract
Since 1984 several financial linkages have developed: the Chicago Mercantile Exchange link with the Singapore International Monetary Exchange, Ltd.; the Boston Stock Exchange with the Montreal Stock Exchange; the American Stock Exchange with the Toronto Stock Exchange; the Midwest Stock Exchange with the Toronto Stock Exchange; the Philadelphia Stock Exchange and the Options Clearing Corporation with the London Stock Exchange; and the American Stock Exchange with the European Options Exchange in Amsterdam. The article traces the development of existing linkages and applies economic theories of market development to domestic and international market linkages. Market linkages raise regulatory issues and these, too, are discussed in the article. International linkages help to facilitate trade and increase competition, but they also must be adequately regulated. 171 footnotes.