As globalization continues to open up overseas opportunities for U.S. investors, it is also encouraging investment in U.S. capital markets by foreign individuals and firms, as well as governments, noted Securities and Exchange Commission chairman Christopher Cox, speaking before the American Enterprise Institute for Public Policy Research on Dec. 5. The growth of state-owned, publicly traded companies and investment funds operated by governments that may not share the U.S. understanding of free markets will present increasing challenges for his agency, said Cox, adding, "When the government becomes both referee and player, the game changes rather dramatically for every other participant." His speech is excerpted here; the full text is in the speeches and public statements section at www.sec.gov.
The pace of events in the world's capital markets has placed global consolidation at the top of everyone's list of what is important for the future. The combination of the New York Stock Exchange and Euronext, Nasdaq's bid to acquire the OMX exchange in Stockholm, Borse Dubai's investments in Nasdaq and in the London Stock Exchange, Eurex Frankfurt's acquisition of the U.S.-based International Securities Exchange, and the London Stock Exchange's recently completed merger with Borsa Italiana are also significant manifestations of this shrinking world. In the next few years, the world's capital markets will become even more integrated as public companies increasingly raise capital beyond their geographic boundaries.
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