Stock Exchange Alliances in Organization of Islamic Conferences (OIC) Countries
Networks Financial institute Working Paper, 2007-WP-18
30 Pages Posted: 1 Nov 2018
Date Written: July 2007
This paper examines the feasibility and economic benefits of stock exchanges alliances among OIC countries. Despite common Islamic culture, OIC local capital market conditions are heterogeneous depending on legal jurisdictions, income level and the maturity of stock market development. Therefore, in this paper, we suggest a set of internationally acceptable standards that aim to provide guidance for the development and implementation of policy irrespective of local differences so that they can form the basis for the development of sound stock exchanges in OIC countries. For the future development of OIC stock exchanges, we propose a bifurcated or two-tier system for blue-chips and small / medium-sized firms. That is, although small and locally operating firms will list shares at local exchanges, larger firms will rely on regional financial centers within Asian, Europe and MENA regions in the long term or a pan-OIC exchange irrespective of where this market will be located in OIC countries.
Keywords: Stock Exchanges Alliances, OIC Capital Markets, Cross-Border Mergers
JEL Classification: F36, G15, G38
Suggested Citation: Suggested Citation