The global equities market is here to stay, by almost all accounts. But its future depends to a large extent on the development of new and better procedures for settling transaction. Trading itself is only half the story. Making sure that execution, payment and delivery take place smoothly and promptly is the main challenge, given the widely differing systems that currently exist around the world and the long delays for which some markets are notorious. As Jonathan Paine, director of Enskilda Securities, told a recent Euromoney conference: "The most serious difficulty in any market is undoubtedly settlement delays, as any of you who have tried to buy Spanish or Italian shares will readily appreciate. No institutional investor will buy a publicly quoted share if the simple market mechanisms necessary to trade that share do riot exist." But if investors can be assured that they can place an order for any international stock, have it executed without problems and receive the shares in exchange for payment without delay and at low cost, maily in the industry believe that international equities trading will rapidly expand. Indeed, lower
costs might also bring in small investors, adding a retall dimension to the market.