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4 B.U. Int'l L. J. 25 (1986)
Global Trading: The Current and Future Impact of United States Markets and United States Portfolio Managers

handle is hein.journals/builj4 and id is 31 raw text is: GLOBAL TRADING: THE CURRENT AND FUTURE IMPACT ON UNITED STATES MARKETS AND UNITED STATES PORTFOLIO MANAGERS STANLEY B. SHOPKORN Stanley Shopkorn is a Managing Director of Salomon Brothers, Inc. and oversees its equity trading operations. Hejoined the firm in 1973 as a trader in the arbitrage department and became a vice president in 1975. In 1978, Mr. Shopkorn was named a general partner. Prior to joining Salomon Brothers, Mr. Shopkorn was vice president of Loab- Rhodes. He received a B.A. from City College of New York and a J.D. fr'om Brooklyn Law School. I. THE CURRENT STATUS OF GLOBAL TRADING Although the United States stock market is the largest in the world, it is not as developed with regard to equities as is the Eurobond market, which has seen significant development in recent years. The steps that are taken to work in those markets are different. No bond market is ever easy because of the wide range of rates and risks, but when dealing with equities one deals with a different component in every stock. The United States has the world's largest stock market by a wide margin. Market capitalization is almost $2 trillion. The United States market is still more than twice as large as Tokyo's, the world's second largest. In 1970 the United States accounted for two-thirds of all share value traded on the world's major exchanges. Today it accounts for only half. In 1970 Tokyo's capitalization was 5% of the world's total. Today it is 21%. Fifteen years ago Tokyo was the world's fourth largest market. Since then it has overtaken both London and Toronto. If Wall Street and Tokyo continue to grow at the same relative pace as for the past fifteen years, Tokyo could overtake Wall Street by the year 1993. Of the five largest companies in each of six major sectors, i.e., automobiles, banking, chemicals, electrical equipment, food processing, and steel, only eight of the thirty companies are American. These are reasons enough for United States investment banking firms to go global. In the past, most major New York firms have for many years been involved in trading blocks of United States equities with international ac- counts as an extension of their regular institutional block trading business. Similarly, many major United States firms have for some years been active in block trading of foreign stocks, particularly the so-called ADR issues in countries such as Japan and the United Kingdom. Indeed, there are several foreign issues for which it is generally recognized that the real market is in New York and not in the home center. In markets as far apart as Australia

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