The author deals with developments relating to the regulation of financial markets against the background of the globalisation processes observed in them. In his view, globalisation is a natural response to the opportunities created by the market. J.J. Wajszczuk concurs with those who, like Peter Jay, consider these processes reflective of the very nature of the world economy today - an economy of highly liberalised flows of goods, capital, technology and management. Seen in this perspective, globalisation is an inevitable consequence of developments such as the growth of the world trade, liberalisation of payments and settlements, establishment of internal and external currency convertibility, gradual abolition of barriers to currency exchange and easier methods of capital transfer.

Obviously, globalisation affects business practices. Whether a company or country succeeds in the global market depends on its explicit decision to compete globally (M. Porter). The strategy of competitive advantage, whereby capital is raised chiefly in the financial markets, has determined the evolution of those on an international scale. The financial sector is as much subject to the universal rules of competition as any other business. Thus the competitive strength of American investment banks has forced considerable changes in the global banking sector - both with relating to structure and product distribution.

Against this background, the author presents the problems of regulation and deregulation of the financial markets. The laws introduced to those markets give rise to changes in agents' mode of operation. On the other hand, international financial institutions (such as the IMF, World Bank, EBRD, OECD, G7, conventions of leaders of the most developed countries) and international regulatory bodies (the Basle Committee) emphasize the importance of financial and macroeconomic stability on the global scale. Recent regulatory changes focus on issues such as the accounting standards (transparency), the M&A market, off-shore markets (taxes, money laundering) as well as risk areas directly relating to management practices in the international financial markets.

Current activities by the Basle Committee focus on constructing risk models for the respective segments of the dynamically developing markets, including private and state-owned entities which constitute them. Therefore the new Capital Adequacy Rules are directed at not only internationally active banks, but also financial institutions, conglomerates and investment companies. Referring to the Committee's activities and the debate around proposals for regulation, the author points to the emerging dilemma - that is, whether effective regulation of the financial markets is at all possible under the present circumstances. The regulators seem to share the doubts, as can be inferred from the Committee's realistic assessment of the situation today and from their utterances to the effect that the discipline imposed by the market, coupled with increased transparency of operation, provide the best sense of security for all parties involved.