While the process of cross-listing facilitates better pricing, it is no replacement for an integrated regional exchange. A truly regional stock exchange is a harmonized system whereby all member states are linked electronically for the conduct of trading in equities, with no controls on cross-border capital flows and easy access to information.
A fully integrated regional exchange would allow firms to have a wider market for raising needed capital  BIS Review 107/2006  5  at competitive rates, thus allowing the productive sectors to become more competitive both regionally and internationally. For a truly effective regional stock exchange, several preconditions that do not now exist must be met.