IV. Recent Developments in Financial Regulation and Market Structures
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International Monetary Fund
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Abstract

This section reviews recent institutional changes in financial markets, looking in turn at developments relating to the regulation of the banking and securities industries and at the reform of market structures. Liberalization of financial markets has continued at a rapid pace and has involved reduced separation of functions between institutions, increased integration of markets, and a sustained rate of financial innovation. These developments have required the adaptation of regulatory structures, and in particular have spurred efforts at international harmonization of standards. Further impetus for reform has emerged in the wake of the market break of October 1987 and other events that have raised awareness of systemic risk, and this has led to attempts to improve market safeguards and establish more rigorous codes of conduct.

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