The decision of OM Group and Morgan Stanley Dean Witter (MSDW)
together to invest ?100 million in a screen-based, electronic,
cross-border stock market called Jiway is yet another indication of
the huge potential growth of online retail stock trading in Europe.
Private client stockbrokers in Europe have seen huge growth in
volumes of retail orders through the internet in recent months. So
far, much of this has been in domestic markets. Yet there is no
logical reason why retail investors in the UK should not invest
with equal enthusiasm in German shares, or even American shares.
The obstacles are fragmented national stock market structures and
all the associated costs. Private client stockbrokers which may be
very active in one European market, are often fearful of the
expensive infrastructure required to set up membership in eight
more exchanges, each with different clearing and settlement
systems.
"On the retail side, the...
