Do we have a global stock market as we have a global foreign exchange market?

Question

What will be an ideal response?

Answer 1

In the global foreign exchange markets, it is possible to trade any currency almost anywhere in the world at any time in the day. This is not true in the stock market, even though globalization has had profound effects on stock market trading. First, there has been increased cross listing of firms on exchanges throughout the world, with London and the U.S. as important listing markets. Second, exchanges have extended their trading hours to make their markets more accessible to foreign traders located in other time zones. In addition, stock exchanges have merged or created alliances with foreign exchanges to automatically cross-list their stocks.
In 2000, the stock exchanges of Amsterdam, Brussels, and Paris merged to form Euronext. Euronext then absorbed the Lisbon exchange and LIFFE, the London derivatives market. Euronext became a company listed in Paris. Its goal was to provide a pool of liquidity through a common order book, one set of clearing hours, a single settlement procedure, and one screen-based electronic system for any company listed with one of the exchanges that are part of Euronext. In March 2007, the NYSE and Euronext merged to form NYSE Euronext, Inc. The NASDAQ (National Association of Securities Dealers Automated Quotations) also expanded by forming the NASDAQ-OMX group, which operates 7 stock exchanges in Europe (Finland, Sweden, Denmark, Iceland, Latvia, Lithuania, and Estonia) and has a stake in the Dubai stock exchange. More mergers are in the works. In early 2011, after the London and Toronto stock exchanges announced their merger, Deutsche Börse and NYSE Euronext announced a plan to merge. Deutsche Börse owns the Frankfurt stock exchange, and together with the Swiss stock exchange operator (SWX), is co-owner of Eurex, a large derivatives exchange. Almost simultaneously, the Singapore stock exchange declared its plans to buy the Australian stock exchange, but the Australian Treasury vetoed the purchase. Since January 2010, the exchanges of Budapest (Hungary), Ljubljana (Slovenia), Prague (the Czech Republic) and Vienna (Austria) became equal subsidiaries of a holding company called CEESEG (Central and Eastern Europe Stock Exchange Group). While the exchanges continue to operate separately with the holding company providing financial and administrative support, it seems likely that they will eventually merge.