Technological development and concentration of ... - Suomen Pankki

a beneficial effect on the market if they enhance efficiency improvements and
permit exchanges to take advantage of scale economies. As well, the creation of
alliances among exchanges would also enable co-operating exchanges to share
high establishment and development cost of new electronic trading technologies
which might lead to greater system efficiency. The trend towards concentration of
exchange markets in Europe is well paving its way, but considerable room for
improvement remains to attain an efficient market organisation of the European
trading landscape. In this respect, regulators are challenged to create and ensure a
stable European regulatory system that is flexible enough to adjust adequately to
future technological and market developments. First initiatives in this direction
have already been achieved by a recent agreement on a new legislative process for
the European securities market based on the reports of the Committee of Wise
Men (2001).
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