THE REVIVAL OF THE NATION-STATE - STOCK-E XCHANGE REGULATION IN AN ERA OF INTERNATIONALIZED FINANCIAL-MARKETS

The debate on economic ''globalization'' suggests that the blurring of territorial boundaries shifts the power relations between nation-stat es and domestic market constituencies in favour of the latter. States have lost autonomy since policies are increasingly formulated in supra national or global. arenas. Market actors may use their wider choice o f geographic location in order to lobby for low regulated market envir onments. The paper seeks to differentiate this common view considerabl y. It argues that economic internationalization weakens the capacity o f domestic market actors to engage in self-binding agreements that for merly had solved regulatory problems. Networks of inter-state collabor ation in turn lack the ability to monitor and enforce negotiated agree ments. Both developments impose new duties of market supervision on th e nation-state. Empirical reference is drawn from the stock exchange s ector that went through a process of transformation which has led to a n enhanced role of the nation-state in the model of sectoral governanc e.