The Changing Structure of the Securities Markets and the Securities Industry: Implications for International Securities Regulation

This article addresses the impact internationalization has had on the world’s securities markets with a particular focus on its role in forcing change in the structure of those markets. Part I describes the forces involved in the internationalization process, and analyzes capital movement and other phenomena that demonstrate the extent of internationalization. Next, it reviews the structural changes that securities markets and the securities industry have made in response to the internationalization process. Part II analyzes the measures regulators have taken to address the implications of those developments. Part III discusses the October Market Break and how it illustrates the interdependence and institutionalization of international securities markets. Part IV suggests that the events of last October have or should have changed our perception of the world and discusses the issues regulators will have to address in order to deal with interdependence, volatility and other characteristics of internationalized capital markets. Part V recommends that regulators respond to these issues by adopting a multilateral approach to certain international securities regulation issues.