... so that financial orientated entities can compete effectively in global financial markets. Two sorts of deregulation, market deregulation and institutional deregulation have led to increased integration of global financial markets. Market deregulation refers to deregulation of the basic structure of the market; major national financial markets has taken the form of eliminating interest rate ceilings and fixed commissions on security transactions. Institutional deregulation measures to open up a country's financial market to global market participants which includes eliminating foreign exchange controls, reducing or eliminating withholding taxes or transfers taxes imposed on foreign investors and relaxing restrictions on: - the purchase of domestic securities by foreign investors - the issuance of bonds by foreign borrowers and allowing the - foreign commercial banks' to participate in local loan market. This is followed by technological advances, which have increased the integration of the markets and the efficiency of it. Advances in the telecommunication systems link dealers throughout ...

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