With the continuous increase in regulatory oversight, many market participants raised concerns about extraterritoriality and the risks to cross-border trading early on. Despite the efforts of regulators around the globe to push equivalence and reciprocity arrangements, the risk of ‘Balkanisation’ of markets still seems very real. Considering the CME is set to open its European exchange, and GFI has stated recently that it sees no demand for a US approved European MTF, there seems to be an awful lot of focus on building parallel infrastructure in different jurisdictions. But there are also opposing signs, indicating a trend towards a more closely integrated financial world; ICAP is launching a UK based SEF, and Singapore’s UOB is the first Asian bank to connect directly to Eurex Clearing. Whether or not you believe in ‘Balkanisation’, this suggests that while regulatory equivalence and reciprocity might be necessary, these measures alone are not sufficient for global trading to flourish. More than ever, firms need access to the right infrastructure to manage regionally specific regulations and the footprint to access global trading opportunities.