The Hindu Business Line : `Markets of future will be cross-border in nature'

The Chief Economist and Head of Research department, New York Stock Exchange (NYSE), Mr Paul Bennett, has said that markets of the future are going to be much more cross-border and global in nature.

Admitting that the NYSE was in talks with Euronext for a merger, Mr Bennett said, "While we can have common branding across markets, it is important to maintain a sense of the regional market as it has distinct regulations. Europe is an ideal example of regional regulations."

Mr Bennett was speaking on Future of World Stock Exchanges, as a part of the Winter Research Conference 2006, organised by the Centre for Analytical Finance, at the Indian School of Business.

Speaking on Evolving Nature of World Stock Exchanges: What Does the Future Hold?' panellists deliberated on changes, demutualisation, consolidation, specialist entities, sweeping stock exchanges around the world.

According to a statement from the ISB, the Head, International Monetary Fund, India office, Mr Josh Felman, pointed out that it is not surprising that exchanges are thinking of mergers during this phase of sweeping globalisation. However, a number of alliances and mergers were proposed, but failed in 90s and around 2000. This was because of a need to link the IT platforms and lack of unified trading and listing roles and also due to governance problems.

Mr Felman concluded that though mergers seem to be the flavour of the month, globalisation and jurisdiction shopping would pose major problem for regulators. `Is regulatory cooperation possible?,' he asked.

The Managing Director, National Stock Exchange of India Ltd, Mr Ravi Narain, said, "Technology has allowed us to think of new products and service streams. Exchange is one of the most heavily regulated businesses."

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`Markets of future will be cross-border in nature'