Integrity Legal

Posts Tagged ‘Singapore Stock Exchange’

17th September 2012

It recently came to this blogger’s attention that the American Secretary of Defense recently commented upon the apparent tensions arising between Tokyo and Beijing over island claims increasingly disputed between China and Japan. In order to provide further insight into these developments it is necessary to quote directly from the official website of The Japan Times, JapanTimes.co.jp:

Visiting U.S. Defense Secretary Leon Panetta on Monday urged Japan and China to peacefully resolve the intensifying territorial dispute over the Senkaku Islands, expressing concern the diplomatic row could result in a military clash over uninhabited islets in the East China Sea. ”It is extremely important that diplomatic means on both sides be used” to avoid further escalation, Panetta said… [H]e also repeated that the United States will “stand by treaty obligation” with Tokyo, which includes defending Japanese soil, based on the Japan-U.S. security treaty…The Japan-U.S. security treaty obliges the U.S. to defend Japan if an area under Japanese administration is attacked by another country. But observers say if a remote island is attacked, it would likely be up to Japan to respond first, not the U.S. military…

Readers are encouraged to visit the hyperlinks noted above to read this story in detail.

It might seem unlikely that this situation could evolve into major confrontation, there are signs that tensions between Japan and China could get worse if some sort of solution is not found. This information comes as anti-Japanese protests in China spread and claims to certain Southeast Asian islands by members of the Association of Southeast Asian Nations (ASEAN) are voiced. Hopefully, this situation will be resolved peacefully and to the benefit of all concerned.

Meanwhile, it would appear that the Malaysian and Singaporean stock exchanges are set to link up in an effort to provide more trading opportunities and capabilities on each of those respective platforms. To shed further light upon these developments it is necessary to quote from the official website of Live Trading News, LiveTradingNews.com:

The Malaysian and Singaporean stock exchanges are seeking to attract individual investors and boost volumes by offering cross-border trading, the 1st step in creating a Southeast Asian platform. Singapore Exchange Ltd. (SGX) and Bursa Malaysia Bhd. (BURSA) start offering the services Tuesday…

Readers are again asked to click upon the hyperlinks noted above to read this article in detail.

These developments could result in future interest in Southeast Asian Securities from investors abroad. Concurrently, it would appear that Thailand’s stock exchange is prepared to provide more integrated services for ASEAN investors, to quote further from the aforementioned article:

[T]he Stock Exchange of Thailand is set to join the link-up between the Association of Southeast Asian Nations members next month…The trading platform is part of a push by Asean Exchanges to boost regional capital markets and lure more investors to exchanges whose companies had a combined market value of $1.98-T at the end of March, according to the group’s website…

Although the results of these efforts remain to be seen, there is good reason to speculate that these developments could lead to further investment in Southeast Asia both by domestic investors as well as investors from outside the region.

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20th August 2011

It recently came to this blogger’s attention that the chairman of the Malaysian Securities Commission was recently noted for comments regarding the future economic prospects of the ASEAN Community. In order to provide further information regarding these developments it is necessary to quote directly from the official website of The Philippine Star, PhilStar.com

KUALA LUMPUR (Xinhua) – As global stock markets tumbled over the week in response to the US credit woes and the Europe debt crisis, Malaysia’s Securities Commission chairman, Zarinah Anwar holds a positive view that markets in Southeast Asia is strong enough to fend off the crisis…”Domestic demand is still strong and ASEAN (Association of Southeast Asian Nation) has to continue to look at its neighbours to pick up selective demands that may arise as a result of the economic woes in our traditional export markets,” she aded. ASEAN’s effort towards an integrated regional economy, with 2015 as a deadline, also contributed to ASEAN’s sound environment…Countries like Malaysia, Singapore, Thailand and the Philippines are in the process of developing a cross-trading arrangement linking their trading system, giving investors direct access to other markets. Currently, Bursa Malaysia, Singapore Stock Exchange, Vietnam’s Hanoi Stock Exchange and Hochiminh Stock Exchange, the Indonesia Stock Exchange, the Philippines Stock Exchange Inc have already linked up on a website labelled as “ASEAN exchanges” which provides investors with access to check the top stocks in the region…[sic]

The administration of this web log encourages readers to click upon the relevant hyperlinks noted above to read this fascinating article in detail.

There has been a great deal of discussion surrounding the future of the economies in the jurisdictions comprising the Association of Southeast Asian Nations (ASEAN: Brunei Darussalam, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Malaysia, and Vietnam). In fact, there has even been discussion about a possibly unified ASEAN visa similar to that utilized by some of the members of Schengen area in Europe. As of yet, such discussion has yet to yield tangible results, but there are those who hope that further discourse on the topic may result in a unified visa of some kind coming into being. Hopefully, ASEAN continues along the path of economic growth to the benefit of all concerned.

In news pertaining to the continuing struggle for LGBT Equality it recently came to this blogger’s attention that the American government appears to have noted the un-Constitutionality of certain provisions of the so-called “Defense of Marriage Act” (DOMA) in the US Courts. In order to provide further insight it is necessary to quote directly from the website of Metro Weekly, MetroWeekly.com:

Back on July 1, the Department of Justice took a big step in defining what its Feb. 23 decisionthat the federal definition of marriage found in Section 3 of the Defense of Marriage Act is unconstitutional would look like. In Karen Golinski’s case seeking equal health benefits for her wife, DOJ argued that the case should not be tossed out of court and should be allowed to proceed. On Aug. 19, DOJ went a step further, telling a judge in the Southern District of New York that Edith Windsor — who is seeking a refund of the more than $350,000 estate tax bill that she had to pay because her marriage to her deceased wife, Thea Spyer, was not recognized by the federal government — should be granted that refund because DOMA’s federal definition of marriage is unconstitutional…This is the first time the government stated affirmatively in court that a lawsuit requiring that Section 3 of DOMA be struck down as unconstitutional should succeed…[sic]

This blogger asks readers to click upon the hyperlinks above to learn more about these developments in detail.

For those unfamiliar with the current immigration implications of DOMA it should be noted that said legislation precludes accordance of US visa benefits such as the K-1 visa, the CR-1 visa, or the IR-1 visa to same sex couples even where the couple has entered into a same sex marriage in a American State jurisdiction which legalizes such unions. Currently, proposed legislation such as Representative Jerrold Nadler‘s Uniting American Families Act and the Respect for Marriage Act would rectify this current discrimination to one degree or another, but the ultimate fate of these bills remains to be seen.

For information related to legal services in Southeast Asia please see: Legal.

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11th February 2011

It recently came to this blogger’s attention that many of the Stock Exchanges around the world are in open discussion regarding possible merger. It would appear that many of the companies which operate various bourses around the globe are keen to exploit the efficiencies and opportunities which could arise as a result of multi-jurisdictional trading. This is even true in the case of the United States of America as the New York Stock Exchange (NYSE) could be merged with an exchange in Frankfurt, Germany. The official website of America’s National Public Radio has more information regarding this issue. To quote directly from NPR.org:

The company that operates the New York Stock Exchange could soon be acquired by a European company in a deal that could be announced as soon as next week.

NYSE Euronext, the company that owns the New York Stock Exchange and stock and derivatives markets throughout Europe, has confirmed it’s in advanced talks with Deutsche Boerse, which owns the Frankfurt Stock Exchange. The deal would create the world’s largest financial exchange, with headquarters in both Europe and the U.S.

Those reading this blog are encouraged to go to the posting noted above to read the full story.

It should be noted that the United States is not the only country whose stock market is contemplating merger with that of a foreign jurisdiction. It recently was announced that the Canadian Stock Exchange (TMX) and the London Stock Exchange (LSE) are in talks about entering deals to merge those two securities exchange platforms. The Financial Times has been reporting on this state of affairs over the past several days. It would appear that the initial enthusiasm that erupted from the announcement that the Canadian and London Exchanges may be merging was overshadowed by the more recent announcement regarding the NYSE and the German Bourse. To quote directly from the official website of the Financial Times, FT.com:

The limelight may have rapidly moved to the US and Germany but those behind the merger of the London Stock Exchange and TMX, operator of Canada’s largest bourse, insist it was the right deal to do…

The deal, which will create a company worth more than $5bn (£3.1bn), is intended to create the world’s leading cash equities platform for mining companies, as countries including Brazil, China and Mongolia look to exploit their natural resources.

Those seeking further information on this topic are well advised to visit the Financial Times posting noted above.

This blogger was interested when reading the above cited story because the country of Mongolia would appear interested in having their business interests represented on a British-Canadian exchange rather than an exchange in Asia. Mongolia’s desire to acquire investment capital may have been “trumped” by worries that listing on an exchange in Asia would run counter to the country’s strategic long term geopolitical interests.

It should be noted that the American, Canadian, British, and German stock exchanges are not the only ones which have been discussing possible merger. In fact, the Australian Securities Exchange and the Singapore Stock Exchange have been working out the details of a merger for months. The announcements from the North American, British, and European exchanges regarding possible merger may be a catalyst for the Australian and Singaporean exchanges to conclude their merger discussions more quickly. To quote directly from a posting on the Sydney Morning Herald‘s official website SMH.com.au:

A RUSH of merger proposals among the world’s biggest stock exchanges over the past two days is expected to increase pressure on Canberra to approve Singapore Stock Exchange’s $8.4 billion move on the Australian Securities Exchange.

But with the trans-Atlantic deals designed with an eye to overcoming political concerns, Singapore could be forced to restructure its proposal to give the ASX a greater role in any tie-up.

The administration of this web log encourages readers to visit the posting cited above in order to get the full details of the proposed merger between the Singapore Stock Exchange and the Australia Securities Exchange.

There have been a great many announcements regarding stock exchanges in Southeast Asia. Recently, it was announced that the small Southeast Asian nation of Laos was opening a stock exchange to trade Lao securities. Apparently, the Laos Stock Exchange has been operating smoothly since its opening. Meanwhile, it has also been noted that the Southeast Asian nation of Myanmar (also referred to by its former name, Burma) is contemplating the establishment of a Burmese Stock Exchange. However, it remains to be seen whether or not this idea will actually come to fruition as Myanmar remains the subject of sanctions and there are many who believe that the country must deal with humanitarian issues prior to undertaking economic programs such as the establishment of a Burmese Bourse. In fact, there are some who argue that so long as Western sanctions remain imposed against Burma that it will be unlikely that an exchange will be opened in that country. That said, anything could happen and the actual establishment of a Burmese stock exchange remains to be seen.

More concrete plans for the opening of a stock exchange appear to be taking shape in the Southeast Asian nation of Cambodia as further steps have been taken toward the proposed opening of a Cambodian Securities Exchange in mid-2011. The following was quoted directly from the official website of the Phnom Penh Post, PhnomPenhPost.com:

PHNOM Penh Securities opened its doors yesterday, becoming the third of seven approved underwriters to open ahead of the planned launch of the Cambodian stock exchange later this year.

Chairman of the firm, Kay Vat, said a key focus of the business would be guiding foreign firms planning to invest in the Kingdom’s listed companies.

Those wishing to learn more about the proposed Cambodian Stock Exchange are well advised to visit the Phnom Penh Post website noted above.

In other postings on this blog it was noted that the Cambodian Exchange is set to commence trading on or around June of this year. At present, there does not appear to be any talk of a merger between the Thai Stock Exchange (often referred to as the SET) and that of any other nation. Furthermore, Chinese officials do not seem particularly predisposed to any type of multi-jurisdictional merger between those exchanges operating in China and those operating in other countries. However, those following this issue should resist the urge to completely rule out such a possibility, but it seems unlikely in the near future as Thai and Chinese officials do not seem poised to make such an announcement.

Stock Exchanges remain an effective tool for countries wishing to attract foreign capital as many foreign investors enjoy the transparency and greater efficiency that comes from trading on an open exchange. That said, the impact from the  “ripple effect” that may result from the merger of the Canadian, American, British, and German Exchanges remain to be seen as the effect of such mergers could reverberate in the economies that make up the Association of Southeast Asian Nations (ASEAN).

American individuals or American companies conducting business abroad should note the fact that all Americans (both natural persons and corporate entities) are required to adhere to the provisions of the United States Foreign Corrupt Practices Act (FCPA). The Foreign Corrupt Practices Act (FCPA) is a piece of legislation which attempts to regulate the activity of Americans abroad in a business context. The act is designed to decrease the incidents of graft and corruption perpetrated by Americans doing business abroad. American businesses and individuals investing or doing business abroad may find the assistance of an attorney useful when attempting to comply with the FCPA in an international context.

For related information please see: Thailand Company or US Company Registration.

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