One way to begin approaching the question of whether U.S. regulatory requirements for foreign firms are appropriate is to review some trends in the data. As shown in Figure 1 below, the London Stock Exchange has already made significant strides in becoming a transnational equity market for Europe. What remains back in the home country – in Milan or Madrid – is primarily the retail business. On average, London accounts for 30% of the trading in Continental European equities.
James L. Cochrane