Indeed, liquidity in this bench mark security as represented by the bid-ask spread is impressive, and according to a recent BIS study, among the best amongst emerging markets. Liquidity, however, almost completely dries off in other off-benchmark securities, which does not reflect well on the market. 2. The corporate debt market has registered impressive growth.
These developments might eventually also lead to a closer coordination of trading practices and technology among stock exchanges, and the planned link-up of eight exchanges in Europe appears to point in this direction. Yet at the same time, the use of advanced information technology renders the physical location of stock exchanges less relevant.