New technology changes the game | The Union Journal

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Economists, pundits, institutions and investors often talk about the global financial system. When stocks go up and trade thrives, they applaud its contributions to prosperity; when the markets crash and stocks dip, they blame its inhuman scale or its untrustworthy manipulators. But anyone who has attempted to diversify their portfolio with foreign stocks or acquire another nation’s bonds quickly comes to the same conclusion: The global financial system isn’t a single entity. “The system,” singular, is really “The systems,” plural.How do the pieces of the global financial system interact? Not always as well as might be hoped, as exemplified by the economic uncertainty brought about by the COVID-19 pandemic. In times of flux, investors diversify their portfolios across different asset classes to protect their investments. However, access to these diverse asset classes is often stymied by the barriers that exist across markets.Complex regulation is a constant theme and, as a result, the global marketplace is really a fragmented mosaic of different marketplaces. The complexity, time and costs involved with transacting across these different jurisdictions are some of the most significant sources of friction in global markets.Much of today’s trading infrastructure is decades old, with …

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