Question

what factors are holding back the creation of a truly global capital market

How might a global capital market function differently from present day international market

can you reference specific examples website?  

Answer 1

The question talks about what factors are holding back the creation of truly Global capital market.
Creation of truly Global capital market is a hypothetical concept, however since long time we are having a lot of development in this area. There has been lot of centres which we can call as a global market such as New York London Singapore Hong Kong Tokyo. But are there in truly sense Global capital market the answer is no.

A true global market would have essence of free capital mobility stable exchange rate and stable monetary policy. As per United states paper Global capital market would deal with corporate Bonds, equities, credit derivatives, mortgage finance, commodities in both developed and emerging market economies.

But what blocks countries to create a truly capital market number one is a market determined exchange rate. Investors who would invest in the Global capital market would like to have a stable exchange rate it should neither be pegged currency nor very volatile.
Another important factor to create a global capital market is a full freedom of cross-border capital movements.
If capital moments is blocked then it can have impact on the exchange rate. Thought and very important factor which blocks to create a global market is a independent monetary policy towards creation of internationally acclaimed and integrated capital market.
I think monetary policy is the most powerful tool to create and to achieve a goal which can which can either achieve internationally integrated capital market.