THE REGULATION OF TRADE IN FINANCIAL SERVICES

Although much of the debate about financial regulation tends to be focused at product, firm or market level, international trade agreements are of growing importance. This paper explains why these ‘macro’ rides have come into existence and examines some of the more important at a multilateral and at a regional level. Recent trade agreements have major consequences for trade in financial services, the rights of establishment and the way financial markets will develop. They provide a framework for nation states to affect both the pace and nature of linkages between domestic and international markets. As such this design of the rules for financial services is, in part at least, the design of markets by regulators. The paper examines some of the more important rides and comments on linkages to other areas of regulatory activity.