Investors have a preference for the larger markets, where there is greater liquidity. This is not to our advantage. Equity markets are least advanced in terms of integration. For many stocks, national considerations are still important. In time, however, trading may become concentrated in a small number of larger centres and the existence of small equity markets may be put in doubt.
In this context, the ability of national markets to be competitive, especially in terms of transaction costs, will be a very important factor. EMU has brought these issues of competition to the fore and increased the urgency of resolving them successfully. These developments are a source of concern to us because of the tendency towards centralisation.