Introduction

Abstract

The object of this book is to give the reader an insight into the operation of some of the world’s major capital markets. It goes almost without saying that financial markets of every kind have been transformed out of all recognition in the past 25 years and furthermore the pace of change shows no signs of slackening. In the 1950s and 60s capital markets were highly protected, insular, almost ossified structures whereas what we now see is a landscape in which distinctions between financial institutions are rapidly disappearing. Previously cartelised equity and bond markets are opening up to competition, a range of markets based on derived instruments such as futures and options have emerged in many centres and a torrent of new financial instruments is being proffered to all manner of potential users. It is by no means clear therefore how capital markets will look even three or four years from now.