Rest of the World

Beginning around 1980, most of the developed markets and a large fraction of developing markets began to push to expand their financial markets. Most adopted the basic premises of the ’75 Amendments: a regulated exchange(s), a central counterparty or clearing corporation, a depository, and transparency in financial transactions.

The exact form of regulation has been a blend of the U.K. and U.S. approaches to regulation. Several nations termed these changes “Big Bang” as well. Although most markets have experienced unique local events, economic conditions, and political pressures that shape their unique regulations, the result has been that many markets in the world employ many similar regulatory principles (see Figure 4.5.5).