Changes in the Structure and the Functioning of the Austrian Capital Market

The increasing interdependence on international capital markets has also forced the Austrian capital market to adjust. The Stock Exchange Act of 1989 was modelled after internatinal standards. The Capital Market Act, that is likely to take effect at the beginning of 1992, will not neglect to protect investors, despite a trend towards deregulation. The auction system for bonds issued by the federal government was changed to cope with present-day requirements. Nonetheless, the bond market as well as the stock exchange market exhibit institutional weaknesses. The secondary market for securities is still far removed from an "efficient" market.