Saturday, April 30, 2005
AIM
Thursday, April 28, 2005
Allied Domecq
Saturday, April 23, 2005
General
Nasdaq acquisition
Exchange News
Friday, April 22, 2005
Company Law Reform and Dematerialisation of Share - Proshare News letter
Back in July 2002 ProShare produced recommendations
with regard to the Dematerialisation of Share Certificates.
The thrust of our recommendation is to issue all
certificated shareholders with a pin number relating to
their shareholding, and at the same time make the share
certificate invalid.
Also embedded in the proposal is the abolition of the
distinction between legal and beneficial shareholders,
enabling all shareholders to be treated equally in their
ability to receive shareholder communications as well as
vote.
Much of the original ProShare paper has now been
included within draft legislation forming part of the
proposed Company Law Reform bill, now in consultation.
Clearly this is a big win for the fair treatment of private
shareholders, many of whom have been disenfranchised
via nominees accounts. It also shows the important work
ProShare can perform in bridging the gap between
companies and their private shareholders.
It is expected that the Bill will be enacted during 2006
with implementation in 2007.
The consultation group is being coordinated under the
aegis of the European Securities Forum and is being led by
UBS with representation from brokers, the LSE, registrars,
Crestco and industry associations. More information can
be obtained from Werner Frey at the European Securities
Forum by calling 020 7478 4210.
with regard to the Dematerialisation of Share Certificates.
The thrust of our recommendation is to issue all
certificated shareholders with a pin number relating to
their shareholding, and at the same time make the share
certificate invalid.
Also embedded in the proposal is the abolition of the
distinction between legal and beneficial shareholders,
enabling all shareholders to be treated equally in their
ability to receive shareholder communications as well as
vote.
Much of the original ProShare paper has now been
included within draft legislation forming part of the
proposed Company Law Reform bill, now in consultation.
Clearly this is a big win for the fair treatment of private
shareholders, many of whom have been disenfranchised
via nominees accounts. It also shows the important work
ProShare can perform in bridging the gap between
companies and their private shareholders.
It is expected that the Bill will be enacted during 2006
with implementation in 2007.
The consultation group is being coordinated under the
aegis of the European Securities Forum and is being led by
UBS with representation from brokers, the LSE, registrars,
Crestco and industry associations. More information can
be obtained from Werner Frey at the European Securities
Forum by calling 020 7478 4210.
Shareholder Transparency
Thursday, April 21, 2005
Exchange News
Pernod Ricard SA to acquire Allied Domecq Plc
NYSE to become Plc by merger
Friday, April 15, 2005
Dixons in to Russia
Russia
Clearstream
DTCC gets J P Morgan as Corporate Actions data client
Ex LSE staff set up in business
Russia
NYSE
Wednesday, April 13, 2005
Exchange News
Exchange News
Irish rival for AIM
China's struggling capital markets
Russian IPO pulled
Russia
Sunday, April 10, 2005
Chinese deal?
Centrica going Global?
General
Saturday, April 09, 2005
Exchange News
US Company criticised for holding AGM in UK
Friday, April 08, 2005
General
Wednesday, April 06, 2005
Exchange News
Russia
Tuesday, April 05, 2005
General
TSX and Montreal
More re Montreal
Re Deutsche Borse execs re LSE bid
UK dual listing onto Nasdaq
ditto small co - AU/Canada
Re ASX
Snippet re SA registrars
More re Montreal
Re Deutsche Borse execs re LSE bid
UK dual listing onto Nasdaq
ditto small co - AU/Canada
Re ASX
Snippet re SA registrars
Cross border deal
Competitor to AIM
Monday, April 04, 2005
General
US Delisting not an issue?
Sunday, April 03, 2005
China
China and LSE (correct link)
Chinese IPOs
China Life Overseas IPO
General re A and H share listings
gcm
Chinese IPOs
China Life Overseas IPO
General re A and H share listings
gcm
gcm
HSBC to bid for Morgan Stanley
General News
M&A activity in US and EU - Q1
LSE and exchange bids
London market
New Irish Market.... and AIM
UK Company Law Reform
NYMEX and IPE competition
China - market performance & governance
International markets and China listings
ArcaEx - February trade data
Argentina debt restructure
Debt restructure - delays
Latin America
LSE and exchange bids
London market
New Irish Market.... and AIM
UK Company Law Reform
NYMEX and IPE competition
China - market performance & governance
International markets and China listings
ArcaEx - February trade data
Argentina debt restructure
Debt restructure - delays
Latin America
Saturday, April 02, 2005
Other items of interest
Friday, April 01, 2005
Exchange News
Russian CSD
Russia set to embrace central securities depository, says expert
Alex Davidson
Russia is moving rapidly towards the adoption of a central securities depository, according to Bruce Lawrence, managing director of HBL Consultancy Services. The move will eliminate the risks that custodians run when dealing with several depository organisations, he noted.
The main existing depository service providers are the Depository Clearing Company, set up in 1993 — serving RTS, the Russian trading system, and National Depository Centre, set up in 1997 — serving MICEX, the currency exchange trading system. A third depository service, Vneshtorgbank, is for dollar denominated eurobonds, and there are some other small providers.
Their ownership has some overlap. NDC is 49.55 per cent owned by MICEX and 41.15 per cent by the Central Bank of Russia, with the balance owned by smaller shareholders. DCC has 19 parties holding a combined 52 per cent stake, as well as NDC holding 30 per cent, and RTS owning 4.3 per cent.
The challenge is always to work within the law, which is easier and faster than trying to change it.
— Bruce Lawrence,
HBL Consultancy Services
These services have a reputation for reliability, according to Lawrence. "Risks arise because these depository services are not highly capitalised, however, and they do not enter into legal agreements with global custodians. When parties involved in a securities transfer are not using the same depository service, there is a time delay, which creates further risk," he said.
The only satisfactory solution is to have a CSD because it offers delivery versus payment capabilities, according to Lawrence. "CREST in the UK shows how it may be done but there is no perfect model because Russia has its own circumstances," he said.
Sparing the expense
A main stumbling block has been the cost, but there has been progress, Lawrence said. The IBRD has issued a loan of $55.25m through the World Bank for developing the Russian capital markets, which explicitly includes addressing the case for a CSD, he noted.
The Federal Services on the Financial Markets, which is closely linked to the Russian Government, has introduced draft legislation on a Central Securities Depository, which working groups are examining. This is one of six pieces of legislation in the pipeline; the others are on securitisation, corporate mergers, derivatives and financial investments, exchange trade regulation; and insider dealing/market manipulation. Laws could be passed within a year, according to Lawrence.
In 1993, Russian financial services market legislation had too much flexibility giving rise to too many possible interpretations of meaning, according to Lawrence. "The market was created rapidly and without plan, and it was tailored to market participants," he said.
Russian laws have since become less flexible, according to Lawrence. "The challenge is always to work within the law, which is easier and faster than trying to change it," he said. As in the UK — where more than 20 registrars have been reduced to four or five — in Russia more than 1,000 registrars have been reduced to 77, and the market is likely to consolidate further, Lawrence noted.
Lawrence is a keynote speaker at the Russian Securities Infrastructure and Operations Forum on 8 and 9 June at Le Royal Meridien National, Moscow, with a separately bookable session on equity offering structures on 10 June. He is running a workshop on client relationship management at the same location on 7 June.
There are still some spaces left; details are available at www.iirconferences.com/russiansecurities. Contact IIR, the organiser, on +44-20-7915-5103, by fax on +44-20-7915-5101, or by e-mail at info@icbi.co.uk.
Delegates who register by 15 April, quoting the VIP code 'KP4012COMP', will save £100 on the conference fee.
Alex Davidson
Russia is moving rapidly towards the adoption of a central securities depository, according to Bruce Lawrence, managing director of HBL Consultancy Services. The move will eliminate the risks that custodians run when dealing with several depository organisations, he noted.
The main existing depository service providers are the Depository Clearing Company, set up in 1993 — serving RTS, the Russian trading system, and National Depository Centre, set up in 1997 — serving MICEX, the currency exchange trading system. A third depository service, Vneshtorgbank, is for dollar denominated eurobonds, and there are some other small providers.
Their ownership has some overlap. NDC is 49.55 per cent owned by MICEX and 41.15 per cent by the Central Bank of Russia, with the balance owned by smaller shareholders. DCC has 19 parties holding a combined 52 per cent stake, as well as NDC holding 30 per cent, and RTS owning 4.3 per cent.
The challenge is always to work within the law, which is easier and faster than trying to change it.
— Bruce Lawrence,
HBL Consultancy Services
These services have a reputation for reliability, according to Lawrence. "Risks arise because these depository services are not highly capitalised, however, and they do not enter into legal agreements with global custodians. When parties involved in a securities transfer are not using the same depository service, there is a time delay, which creates further risk," he said.
The only satisfactory solution is to have a CSD because it offers delivery versus payment capabilities, according to Lawrence. "CREST in the UK shows how it may be done but there is no perfect model because Russia has its own circumstances," he said.
Sparing the expense
A main stumbling block has been the cost, but there has been progress, Lawrence said. The IBRD has issued a loan of $55.25m through the World Bank for developing the Russian capital markets, which explicitly includes addressing the case for a CSD, he noted.
The Federal Services on the Financial Markets, which is closely linked to the Russian Government, has introduced draft legislation on a Central Securities Depository, which working groups are examining. This is one of six pieces of legislation in the pipeline; the others are on securitisation, corporate mergers, derivatives and financial investments, exchange trade regulation; and insider dealing/market manipulation. Laws could be passed within a year, according to Lawrence.
In 1993, Russian financial services market legislation had too much flexibility giving rise to too many possible interpretations of meaning, according to Lawrence. "The market was created rapidly and without plan, and it was tailored to market participants," he said.
Russian laws have since become less flexible, according to Lawrence. "The challenge is always to work within the law, which is easier and faster than trying to change it," he said. As in the UK — where more than 20 registrars have been reduced to four or five — in Russia more than 1,000 registrars have been reduced to 77, and the market is likely to consolidate further, Lawrence noted.
Lawrence is a keynote speaker at the Russian Securities Infrastructure and Operations Forum on 8 and 9 June at Le Royal Meridien National, Moscow, with a separately bookable session on equity offering structures on 10 June. He is running a workshop on client relationship management at the same location on 7 June.
There are still some spaces left; details are available at www.iirconferences.com/russiansecurities. Contact IIR, the organiser, on +44-20-7915-5103, by fax on +44-20-7915-5101, or by e-mail at info@icbi.co.uk.
Delegates who register by 15 April, quoting the VIP code 'KP4012COMP', will save £100 on the conference fee.
Chinese Expansion
