Despite its goal of a fully integrated national market, the SEC was not prepared to make fundamental choices about trading systems. Indeed, the SEC left the initiative to the exchanges. The EU has a poor track record on its many initiatives, which often collapsed when a member exchange withdrew to protect its competitive interests. The SEC did not go far enough in 1976, allowing instead a system that limits competition. Once such constraints to integration as official barriers and monopolistic practices are removed, trading systems constitute the principle hindrance.
Government can play a role facilitating or prodding the private sector.
The U.S. stock exchanges are much more integrated than those of other regions because of SEC policy 20 years ago. The SEC prodded the exchanges through threats of more extreme action. The EU s most recent modest initiatives look promising. Finally, India s NSE has integrated the Indian market, though not fully, at the initiative of SEBI and with its help. This is a very different approach from the others we saw.