Latin American Capital Markets

526 FOCUS ON CAPITALenforcement of market rules (continued)globalization, 67-68harmonization problems, 169importance of, 19-20Internet trading, 74-75in Latin America, 116,426oversight of markets, 379regulation, 53, 167, 303shareholder protection, 494See also regulationEnron Corp., 213-14,221entrepreneurs and financial access for SMEs, 389equity marketsalliances and partnerships, 109,247Brazil, 94capitalization levels, 9-10corporate governance, 4current status of emerging, 39—41vs. debt markets, 93,97-102, 106, 114,127derivatives markets, 341^47, 348, 355economic growth, 3,6, 165globalization, 38,41 -48,59-61, 109,256India, 102-3, 115Internet impact, 65-66, 68-75market development role, 502-3productivity issue, 165rating agencies, 19-20regulation issues, 53-59, 61-62, 66-68,74-87,98safekeeping of securities, 23SMEs, 8, 396-98, 399,405technology developments, 48-53, 61trade activity, 12U.S., 138See also capital markets; exchanges,securitiesERISA (Employee Retirement Income SecurityAct of 1974) (US), 134ethical issuescapital market applicability, 415-16framework for market profession, 419-21fraud, 74,83-86, 101-2, 103, 167Latin American/Caribbean markets,425-31and law, 419,423-25manipulation of market, 83-86, 346, 347,355, 385moral development process, 418n3moral hazard problem, 101-2, 314,424role in markets, 416-19and self-regulation, 377trust, 421-23See also conflicts of interest; transparency,marketEurex Clearing, 191 -92,247,248EUROCAC, 163Euroclean 196Eurolinks model for settlement, 197EuroList, 179Euronextalliance partners, 109andCCRI9ldemutualization of exchanges, 289-90infrastructure improvements, 264institutional investing, 139regional market integration, 187-88,198-99trading cost reductions, 251EuroJMM, III, 114, 198Europebenefrts/costs/barriers to integration,161-66capitalization levels, 9-10,42clearing and settlement, 139, 176, 190-98,248,251demutualization of exchanges, 272-73,282electronic trading, 48—49exchange trading, 185-90,410information dissemination, 179-82institutional investing, 139, 140integration issues, 46, 146, 177, 199-203,251,264and Latin American integration, 27listing, 178-79marketing of markets, 198-99mutual recognition/home country control,170-77order routing, 182-85public sector financing role, 91 -92regulation issues, 54,279SMEs, 147,389,391,392,394,401,407-10,411-12standards issues, 169,221technology, 131, 163,251trading activity, 12See also individual countriesCopyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub