102 p.According to the law of one price, homogeneous goods quoted in different currencies will be traded at the same price after adjustment for the exchange rate. Studies by researchers have shown that where the homogeneous assets may be traded freely across international borders, arbitrage trading by
investors will ensure that such asset prices will not differ by more than the transaction costs involved. Since the setup of CLOB International, Malaysian counters traded on both KLSE and CLOB have often attracted arbitrage trading. This is in spite of scripless settlement and clearing system adopted by KLSE.ACCOUNTANC
