1. What key challenges face regulators resulting from the merger of financial exchanges in different countries? How do you see these challenges being resolved?
2. In what way are these regulatory issues similar to or different from those confronting the SEC and state regulators and the European Union and individual country regulators?
3. Who should or could regulate global financial markets? Explain your answer.
4. In your opinion, would the merging of financial exchanges increase or decrease international financial stability?

The year 2010 marked a turnaround for the NYSE Group, the world’s largest stock and derivatives exchange measured by market capitalization. A product of the combination of the New York Stock Exchange and Euronext NV (the European exchange operator), the NYSE Group reversed the three-year slide in both its U.S. and European market share. Albeit modest, the improvement in market share was attributable largely to the decision to increase information technology spending rather than to any significant change in the regulatory environment. The key to unlocking the full potential of the international exchange remained the willingness of countries to harmonize the international regulatory environment for trading stocks and derivatives.