You'll all come flooding back

Author: | Published: 1 Nov 2007

Over the past few years, the attraction of US public capital markets for non-US securities issuers has plummeted. This has largely been the result of a confluence of events: the passage of the Sarbanes-Oxley Act in the US, the growth of London's Aim market during the otherwise lean post-9/11 years, and the developing maturity of local capital markets around the world. Some think that the US has lost its attraction for non-US issuers forever.

But that attraction could return faster and more strongly than many overseas stock markets, market participants and observers realise. It will probably not return as the result of US tinkering with Sarbanes-Oxley, or even through a wholesale gutting or repeal of that law. It may not return as a result of SEC efforts to coax back foreign issuers; these include the Commission's steps toward the acceptance of International Financial Reporting Standards and its plans to...