aforementioned technologies, they have been able to provide services such as in-house trading or custody services to their clients, which a decade ago they could not. (Bank of England 1999). They are able to offer low cost trading and settlement mechanisms alternatives that detract from the major markets members. With these new technologies in hand, large intermediates are able to offer cross-border services that a national service would be unable to provide. In recent years, governments have with their policies, and implementation of enquiries (Campbell 1981 and Wallis 1997), have strongly encouraged globalisation. Governments, especially from economically smaller nations, are looking toward globalisation to strengthen their own economy. With international investment made easier with new mergers and links between small markets, as previously mentioned. The missteps that have occurred in recent times have been a result of a number of structural changes that have, and still are occurring within national and international economic markets. This essay was able to discuss two of the major structural changes that have occurred in the markets in recent years, being the merger of markets and new links between markets. Examples were provided of mergers that have taken place, and are expected to happen in the future. Evidence was provided of formal recognised links between markets, and links or associations between markets in the future were also provided. A more informal link between the US markets and the LSE was shown, and how this informal link could hinder the LSE if a US downturn happened. The essay then described in detail the reasons for these changes, which included; technological advances, technology and scale economies, technology and competition, cross border investment and globalisation of financial intermediaries. Specific examples were provided of the effect of technology in the Australian Exchange Market, as well as other mar...
