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Global Competition Of Stock Exchange Term Paper

Thus, the TSX has a competitive advantage in attracting new mining issues since those types of companies find it easier to raise capital there than on most other exchanges. Another major point of competition is the investment banking sector. Firms often choose their exchange based on their ability to raise capital. This requires a strong investment banking sector, and a market in which a broad range of institutional investors participates. This increases the pool of available capital as well as overall market liquidity. For example, London Stock Exchange Chairman Chris Gibson-Smith outlined the need for European capital markets to integrate in order that their liquidity and capital-raising ability match that of the U.S.

Each of the world's major capital markets has recognized the paradigm shift from national-based markets to global capital markets that stems from free movement of global cash flows. The world's major exchanges are actively competing for capital, based on liquidity, legislative environment, exchange structure and local...

As global restrictions on capital flows continue to fall, this competition will increase in intensity.
Works Cited

Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership. Retrieved June 23, 2008 at http://schumer.senate.gov/SchumerWebsite/pressroom/special_reports/2007/NY_REPORT%20_FINAL.pdf

Gibson-Smith, Chris. (2005). Why Europe's Equity Markets Matter. Speech from FESE Convention, retrieved June 23, 2008 at http://www.londonstockexchange.com/en-gb/about/Newsroom/Media+Resources/Speeches/euroequity.htm

No author. (2008). Leadership in International Mining. TSX Group. Retrieved June 23, 2008 at http://www.tsx.com/en/pdf/Mining_Sector_Sheet.pdf

Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership.

Leadership in International Mining. TSX Group. (2008)

Gibson-Smith, Chris. (2005). Why Europe's Equity Markets Matter. Speech from FESE Convention

Sources used in this document:
Works Cited

Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership. Retrieved June 23, 2008 at http://schumer.senate.gov/SchumerWebsite/pressroom/special_reports/2007/NY_REPORT%20_FINAL.pdf

Gibson-Smith, Chris. (2005). Why Europe's Equity Markets Matter. Speech from FESE Convention, retrieved June 23, 2008 at http://www.londonstockexchange.com/en-gb/about/Newsroom/Media+Resources/Speeches/euroequity.htm

No author. (2008). Leadership in International Mining. TSX Group. Retrieved June 23, 2008 at http://www.tsx.com/en/pdf/Mining_Sector_Sheet.pdf

Bloomberg, Michael and Schumer, Charles. (2007) Sustaining New York's and the U.S.' Global Financial Leadership.
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