ABSTRACT
This chapter begins with a profile of New York, America's historic financial center, in order to identify the present basis for its leadership in domestic financial activities and the factors which will tend to heighten competitive pressures in the future. It examines competition for front office activity by contrasting the rise of two major financial centers, Los Angeles and Chicago. The chapter identifies a number of issues which point to the likelihood of intensifying competition among domestic centers in the future and the implications for traditional financial centers like New York, setting the stage for consideration of public policy options. Convergence and globalization in financial markets are forcing a redefinition of New York's position in relation to other domestic and international financial centers. New York's technological edge as a financial center is tied to the development and sophistication of technologies for payments settlement.
