Competition and Survival of Stock Exchanges: Lessons from Canada
38 Pages Posted: 6 Dec 2007
Date Written: August 20, 2007
We analyze the competition between two developed stock exchanges. Their development rests mainly on their capacity to attract securities and trades. The U.S. 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 U.S. market is a huge challenge for Canadian policy makers, while the efforts to compete with the U.S. 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.
Keywords: securities exchange, competition, cross-listed securities
JEL Classification: G12, G18, F36
Suggested Citation: Suggested Citation