The “End of Geography” in Financial Services? Local Embeddedness and Territorialization in the Interest Rate Swaps IndustryFootnote

* I am thankful for helpful comments by John Langdale, Maritta Driguez and interviewees at several Australian banks on an earlier draft. The comments of one reviewer in particular were exceptional in substantially improving the quality of the paper. Thanks also to Judy Davis for assistance with the figures.

References

• Agnes, P. L. 1997. Global-localisation in the organisation of wholesale financial services: Sydney as an international financial services city. Ph.D. thesis, Macquarie University, Sydney, Australia.
   Google Scholar
• Amin, A., and Thrift, N. 1992. Neo-Marshallian nodes in global networks. International Journal of Urban and Regional Research 16:571–87.
   Web of Science ®Google Scholar
• Amin, A., and Thrift, N. 1993. Globalization, institutional thickness and local prospects. Revue d’Economie Regionale et Urbaine 3:405–27.
   Google Scholar
• Amin, A., and Thrift, N. 1994. Living in the global. In Globalization, institutions, and regional development in Europe, ed. A. Amin and N. Thrift, 1–22. Oxford: Oxford University Press.
   Google Scholar
• Beaverstock, J. V. 1994. Re-thinking skilled international labour migration: World cities and banking organisations. Geoforum 25:323–38.
   PubMed Web of Science ®Google Scholar
• Blanden, M. 1996. Make way for mergers. The Banker, March, 44, 45.
   Google Scholar
• Boden, D., and Molotch, H. L. 1994. The compulsion of proximity. In NowHere space, time and modernity, ed. R. Friedland and D. Boden, 257–86. Berkeley: University of California Press.
   Google Scholar
• Celarier, M. 1993. The biggest banks in derivatives. Global Finance 7 (8):27–34.
   Google Scholar
• Cerny, P. G. 1994. The dynamics of financial globalization: Technology, market structure, and policy response. Policy Sciences 27:319–42.
   Web of Science ®Google Scholar
• Clark, G. L., and O’Connor, K. 1997. The informational content of financial products and the spatial structure of the global finance industry. In Spaces of globalization reasserting the power of the local, ed. K. R. Cox, 89–114. New York: Guilford Press.
   Google Scholar
• Cohen, B. J. 1996. Phoenix risen: The resurrection of global finance. World Politics 48:269–96.
   Google Scholar
• Das, S. 1994. Swaps and financial derivatives: The global reference to products, pricing, applications and markets. 2d ed. Sydney: Law Book Co.
   Google Scholar
• Fairlamb, D. 1995. Can anyone get globalization right Institutional Investor 29 (8):40–48.
   Google Scholar
• Fleck, J. 1996. Informal information flow and the nature of expertise in financial services. International Journal of Technology Management 11:104–28.
   Web of Science ®Google Scholar
• Gertler, M. S. 1997. Between the global and the local: The spatial limits to productive capital. In Spaces of globalization: Reasserting the power of the local, ed. K. R. Cox, 45–63. New York: Guilford Press.
   Google Scholar
• Global distribution of derivatives activity varies greatly by instrument. 1996. Swaps Monitor, 26 February.
   Google Scholar
• Grabher, G. 1993. Rediscovering the social in the economics of interfirm relations. In The embedded firm: On the socioeconomics of industrial networks, ed. G. Grabher, 1–31. London: Routledge.
   Google Scholar
• Granovetter, M. 1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology 91:481–510.
   Web of Science ®Google Scholar
• Greenwald, J. 1994. The secret money machine. Time, 11 April, 28–31.
   Google Scholar
• Group of Thirty. 1993. Derivatives: Practices and principles. Washington, D.C.: Group of Thirty.
   Google Scholar
• Healey, M. J., and Rawlinson, M. B. 1993. Interviewing business owners and managers: A review of methods and techniques. Geoforum 24:339–55.
   Web of Science ®Google Scholar
• Hepworth, M. 1991. Information technology and the global restructuring of capital markets. In Collapsing space and time: Geographical aspects of communications and information, ed. S. Brunn and T. R. Leinbach, 132–48. London: HarperCollinsAcademic.
   Google Scholar
• Langdale, J. V. 1991. Telecommunications and international transactions in information services. In Collapsing space and time: Geographical aspects of communications and information, ed. S. Brunn and T. R. Leinbach, 193–214. London: HarperCollins Academic.
   Google Scholar
• Lee, R., and Schmidt-Marwede, U. 1993. Interurban competition? Financial centres and the geography of financial production. International Journal of Urban and Regional Research 17:492–515.
   Web of Science ®Google Scholar
• Leyshon, A. 1996. Dissolving difference? Money, disembedding and the creation of “global financial space.” In The global economy in transition, ed. P. W. Daniels and W. F. Lever, 62–80. Harlow: Longman.
   Google Scholar
• Macdonald, S., and Williams, C. 1992. The informal information network in an age of advanced telecommunications. Human Systems Management 11:77–87.
   Google Scholar
• Markusen, A. 1994. Studying regions by studying firms. Professional Geographer 46:477–90.
   Web of Science ®Google Scholar
• Martin, R. 1994. Stateless monies, global financial integration and national economic autonomy: The end of geography? In Money, power and space, ed. S. Corbridge, N. Thrift, and R. Martin, 253–78. Oxford: Blackwell.
   Google Scholar
• O’Brien, R. 1992. Global financial integration: The end of geography. London: Royal Institute of International Affairs, and Pinter.
   Google Scholar
• Organization for Economic Cooperation and Development (OECD). 1993. World securities markets: Looking ahead. OECD Financial Market Trends 55:13–42.
   Google Scholar
• Ogden, J. 1997. The best derivatives banks in the world. Global Finance 11:39–50.
   Google Scholar
• Pryke, M., and Lee, R. 1995. Place your bets: Towards an understanding of globalisation, socio-financial engineering and competition within a financial centre. Urban Studies 32:329–44.
   Web of Science ®Google Scholar
• Quinn, L. 1994. Lessons from the losses. Corporate Finance, June:19–27.
   Google Scholar
• Remolona, E. M. 1992. The recent growth of financial derivative markets. Federal Reserve Bank of New York Quarterly Review 17:28–43.
   Google Scholar
• Schoenberger, E. 1991. The corporate interview as a research method in economic geography. Professional Geographer 43:180–89.
   Web of Science ®Google Scholar
• Schrader, S. 1991. Informal technology transfer between firms: Cooperation through information trading. Research Policy 20:153–70.
   Web of Science ®Google Scholar
• Storper, M. 1997. Territories, flows, and hierarchies in the global economy. In Spaces of globalization: Reasserting the power of the local, ed. K. R. Cox, 19–44. New York: Guilford Press.
   Google Scholar
• Ter Hart, H. W., and Piersma, J. 1990. Direct representation in international financial markets: The case of foreign banks in Amsterdam. Tijdschrift voor Economische en Sociale Geografie 81:82–92.
   Web of Science ®Google Scholar
• Thrift, N. J. 1990. The perils of the international financial system. Environment and Planning A 22:1135–37.
   Web of Science ®Google Scholar
• Thrift, N. J. 1994. On the social and cultural determinants of international financial markets: The case of the City of London. In Money, power and space, ed. S. Corbridge, R. Martin, and N. Thrift, 327–55. Oxford: Blackwell.
   Google Scholar
• Thrift, N., and Leyshon, A. 1988. “The gambling propensity”: Banks, developing country debt exposures and the new international financial system. Geoforum 19:55–69.
   Web of Science ®Google Scholar
• Thrift, N., and Leyshon, A. 1994. A phantom state? The de-traditionalization of money, the international financial system and international financial centres. Political Geography 13:299–327.
   Web of Science ®Google Scholar
• U.S. General Accounting Office (GAO). 1994. Financial derivatives actions needed to protect the financial system. Washington, D. C.: GAO.
   Google Scholar
• von Hippel, E. 1987. Cooperation between rivals: Informal know-how trading. Research Policy 16:291–302.
   Web of Science ®Google Scholar
• von Hippel, E. 1994. “Sticky information” and the locus of problem solving: Implications for innovation. Management Science 40:429–39.
   Web of Science ®Google Scholar