ABSTRACT
It is often said that with the computerization and the internationalization of the activity, competition between exchanges became tough. This might be true, but it is important to understand the nature of this competition. On the primary market, exchanges are supposed to compete for listings. In fact, this competition only concerns a marginal number of cases. Most of the IPOs in Europe take place on the domestic market, even for big global-sized companies. This strong national bias can be explained by two reasons. The first one is regulation. Given regulatory discrepancies (IPO regulation, ongoing transparency obligations, accounting standards) it remains more natural for a company to get listed in its jurisdiction of registration. The second reason has more economic ground: it is the home market factor which remains important for the equity market. This is particularly, though not exclusively, true for small and mid caps. Issuers are indeed keen to tap the domestic investor pool where they benefit from a natural notoriety, in a sort of informational hinterland.
