The Future of Stock Exchanges in

Financial markets, and especially stock markets, have grown considerably in developed and developing countries over the past two decades. Better fundamentals (higher economic growth, more macro sta-bility), structural reforms (notably privatization of state-owned enter-prises), and specific policy changes (notably domestic financial reform and capital account liberalization) have aided in their growth. Globalization has also advanced, with increased cross-border capital flows, tighter links among financial markets, and greater commercial presence of foreign financial firms around the world. An element of the globalization trend has been the migration of stock exchange activities abroad, particularly from emerging markets. Many firms from emerging economies now cross-list on international exchanges. Depository receipts (DRs), for example, are increasingly popular instru-ments.1 According to data provided by the Bank of New York, $533 billio