In addition, countries, especially those with small markets, should encourage that
their local trading systems are linked tightly or merged with global markets. Furthermore,
as Steil (2001) highlights, countries' governments should encourage foreign trading
systems and clearing and settlement operators to provide services locally, whether in
collaboration with local institutions or on their own, and if necessary, remove any
impediments against foreign participation. Finally, to avoid domestic institutional
investors being held captive to an increasingly illiquid and untransparent local market,
portfolio restrictions that require investment in local instrumnents only should be avoided.