Abstract
The trend towards securities market globalization is clear with issuers and investors demanding global options for raising and investing funds. Easier and faster access to information and trading platforms due to the advances in technology have added to the trading volumes by facilitating the trading of securities across time zones and continents. Though cross border trading volumes are on the increase, the barriers and challenges are many ranging from high costs and multi channel trade processing to local regulatory and legal procedures. The securities industry has been focusing on the development of efficient and consistent infrastructures for the regulation, trading, and processing of cross border trades.

The three major trends led by the popularity of cross border trading can be narrowed down to the consolidation of exchanges beyond national boundaries, global straight through processing and integrated central counterparty. Of these the most promising is the international co-operation on exploring the possibility and clearing the way for creating a single central counterparty. This white paper explains the cross border trading environment, challenges, initiatives taken by market participants to facilitate it, the institutions involved, and the related technological developments.

Author Anu Beri

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