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Listings From The Emerging Economies: An Opportunity For Reputable Stock Exchanges, Nicholas Tay, Reza Olati

Finance

We provide current evidence to show that the numbers of sponsored depositary receipts created and cross‐listed have increased by more than two‐fold over the last decade and a substantial proportion of this growth came from the emerging and developing economies. We argue that the needs of this clientele and the inadequacies of existing legal and financial system create an opportunity for reputable stock exchanges to play the role of an information and reputation intermediary and in so doing allow exchanges to leverage on their reputation capital to compete more effectively for the growing business from the emerging and developing economies. …