The domestic capital markets of the major industrial countries have become more closely integrated over the last two decades, a by-product of regulatory and technological change. This paper considers some of the implications of those changes for Canadian public policy. While no profound implications are found for Canadian macroeconomic policies, which probably reflects a long history of close relationships between Canadian and U.S. financial markets, recent trends in international financial markets nevertheless have implications for the structure, regulation and supervision of Canadian financial markets.