listing at Stock Research

The USA has the largest share market in the world. And though for some years (in the end of 80th - the beginning of 90th years) it has yielded precedence to the Japanese market, nevertheless it has regain positions after crash of the Japanese market after earthquake in Osaka. Ordinary stocks in the USA have no face-value. Other feature of actions of the USA is that their holders usually do not receive preemption right when the companies issues additional stocks.
If the company wishes to issue stocks for the public circulation, it should address in the Commission under securities and stock exchanges and to carry out of strict obligations on disclosing the information which continue to operate and in the further. Even the method of preparation and representation of the financial reporting stipulates in these rules. Until recently the Commission negatively concerned to dual listing of securities on a myriad of the stock exchanges organized on all country. These stock exchanges (all of them are authorized by the Commission) have no exclusive right on trade. And operations on over-the-counter market are widely widespread at them.
Many stock exchanges have kept the adherence to a trading hall in which brokers conclude transactions face to face. In addition to trade in a hall of a stock exchange are equipped by computer systems (at New-York stock exchange such system refers to “Super pillbox”), and at them so-called “transactions by phone on the top floor” for large share holdings also practice. Stock exchanges also often use “expert” who partly is engaged in regulation, and partly acts in a role of the main trader, and only one expert is engaged in each securities. However the growing North American association of dealers under securities (NASD) by means of the system of automatic quotations has created a special market niche especially for stocks of the hi-tech companies and technically it is considered organized over-the-counter market. There is a requirement of bodies of regulation concerning all intermediaries in the USA - they should aspire to the conclusion of the transaction under the “best” price which is available in a network of stock exchanges of the USA irrespective of, whether local it is the market or not.
In the general opinion, the market of the USA is the most adjustable according to the legislation originally put into operation in the beginning of 1930th years. In this market extremely strict control measures are applied concerning its all participants at their admission on the market and carrying out of operations on it. Access of commercial banks to trade in securities is still limited by Glass Stigl Certificate which does not allow concluding to banks the transaction on the goods and securities of the same companies.
Calculations are usually made for the third working day after day of the conclusion of the transaction (T + 3) on the basis of everyday execution through usual bank system.

Channel Islands Stock exchange (CISX/Exchange) has begun the activity in 1998 and renders services under the admission of securities to the trades (listing), and also on over-the-counter trading of securities. CISX/Exchange developed the accelerated rates, and for December, 31st, 2004 its market capitalization has made 28 billion US dollars.
For May, 31st, 2005 800 companies have passed procedure of listing. CISX/Exchange offers an individual approach and fast process of processing of applications on the admission of securities on the innovative and highly controllable market. CISX/Exchange specializes on following services:
- services of experts on carrying out of operations with securities (including the Eurobonds, the structured duty and guarantees);
- investment funds;
- primary and secondary listing of securities and the actions emitted by the companies of Channel Islands and the foreign companies;
- depositary receipts which are given out by Channel Islands.
CISX/Exchange has the site in the Internet where the detailed review of sponsors of listing and the securities quoted at a stock exchange is given. The market information and quotations of the prices, is published worldwide on the pages of agency Reuters devoted to the CISX/Exchange.
CISX/Exchange has a favorable mode of listing of those securities in which the limited number of the investors (well understanding questions of investments) trades.
With the introduction in July of the Instruction of EU on Market Frauds, heightened interest to the securities which are quoted on CISX/Exchange as Channel Islands are not a part of EU so, CISX/Exchange is not the market adjustable by the given Instruction is observed.
CISX/Exchange has competitive prices, an effective turn of documents with the purpose of consideration of applications within 48 hours, and also keeps work with emitters and sponsors of listing on a flexible and commercial basis. The similar attitude is reflected in all aspects of listing from requirements about disclosing the information before accommodation of methods of introduction of innovative structures.
Though CISX/Exchange is situated at the territory of the Europe, and time of carrying out of its trades coincides with London time, it is not adjusted EU.
CISX/Exchange has a plenty of official international recognitions, for example:
• It is adjusted by the Commission on granting Financial Services of Guernsey which is the participant of the International Organization of the Commissions under securities;
• Is the recognized stock exchange according to section 841 of the Law on the income and corporate tax of the United Kingdom from 1988, hence, the debt securities quoted on CISX/Exchange, can be considered as quoted Eurobonds for the purposes of the taxation in the United Kingdom, percent on which are paid up to a deduction of taxes;
• Management of Financial Services of the United Kingdom has approved activity CISX/Exchange as an investment stock exchange within the limits of the Law on Financial Services and the Markets from 2000;
• CISX/Exchange is a related member of the International Organization of the Commissions under securities;
• The stock exchange is recognized by the Commission under securities and stock exchanges of the USA as an offshore securities market according to the Rule 902 (c) of the Law on securities of 1933;
• It is officially recognized by the Australian Stock exchange;
• CISX/Exchange is registered in the World Federation on Stock exchanges as “the market which is meeting the requirements”;
• The stock exchange is a member of the European Forum on maintenance and financing of securities.
Applications on reception of the quotation on CISX/Exchange move through the sponsor who is the member of CISX. The given stock exchange provides accelerated “the equivalent approach” to process of applications on reception of the quotation of securities. It means that by consideration of the similar application documents on reception of the listing, prepared for jurisdiction or the stock exchange recognized CISX/Exchange provided that the information containing in documents of a similar sort, essentially did not change can be used. Process of applications on reception of the quotation has four stages.
1. The sponsor and the emitter prepare and hand over the initial application, including the project of the document on reception of the quotation. CISX/Exchange usually loyally approaches to consideration of documents if requirements about disclosing a special sort of the information are not observed owing to presence of circumstances from the emitter. For submission of applications on secondary listing already available documents on reception of the quotation in the primary market can be used. At the given stage all corresponding projects of powers of attorney on management of the property and other financial tools serving by maintenance of debt securities, or components of those also are a subject to check.
2. Check of applications (usually within 48 hours) is spent, and then the sponsor at the coordination with the emitter gives answers on emerged questions.
3. The sponsor submits a final variant of the application which considers Management of the Share Market.
4. After reception of approval of Management of the Share Market documents on reception of listing are registered, and securities are brought in the official list of quotations of a stock exchange. The official information of listing are published in the form of the official application, and process of fulfillment of the trades and commercial transactions begins.
To pass all four stages from the initial application before reception of listing it is possible for 10 days, though CISX/Exchange can accelerate this process, proceeding from commercial reasons.
The sponsor of listing promotes the emitter in preparation of all documents, submits them in CISX/Exchange and keeps in contact with CISX/Exchange concerning any inquiries which can act in connection with process of reception of the quotation.
A necessary condition for reception of listing is that the emitter carries out the obligations according to Rules of listing and other duties concerning given procedure. Besides observance of special Rules of listing, the emitter is obliged to inform the public, CISX/Exchange and holders of securities of the company on occurrence of any important data concerning the emitter, allowing the public and owners of securities correctly define a financial position of the emitter, to avoid creation of a false securities market, and also possible negative influence on activity of the market and cost of securities.
The further requirements include granting CISX/Exchange of spears of annual reports, audit or other financial reports of the emitter, and also disclosing CISX/Exchange of the information on any changes of the rights provided by debt securities of the emitter, quoted on a stock exchange. Emitters should hand over copies of the announcements containing the information on debt securities, included in listing, for check by Channel Islands Stock exchange before their publication.

I have written this blog for 1.5 month, but only several days ago I realize that I wrote about different foreign stock exchanges, but I’ve forgotten to write about the unique stock of my own country… About Belarusian Currency and Stock Exchange… And today I’ll try to correct it!
The portrait of open joint-stock company “Belarus currency-stock exchange”
The open joint-stock company “Belarus currency-stock exchange” has been formed in 1998 in accordance with the Decree of the President of Belarus from July, 20th, 1998 №366 “About perfection of system of state regulation of the stock market”. Founders of a stock exchange became National bank of the Republic of Belarus (a control share holding), Fund of the state property of the Ministry of Economics of the Republic of Belarus and a number of large banks of the Republic of Belarus.
The supreme body of management of open joint-stock company “Belarus currency-stock exchange” is General meeting of shareholders. The structure of shareholders of a stock exchange, except for founders includes banks, the broker/dealer subsidiaries of republic, etc. The Management of a stock exchange between the General meetings of shareholders is carried out by the Supervisory council.
As of today of open joint-stock company “Belarus currency-stock exchange” is the unique in republic trading platform on the basis of which the national system of the exchange trades on all basic segments of the financial market is created: currency, share and term. Except for the organization of the trades, the stock exchange carries out functions of the settlement depositary institution in the exchange market of not state securities, function of the operator of settlement-clearing system by all kinds of securities and tools of the term market, and also carries out registration of the transactions concluded on the over-the-counter market with stocks of open joint-stock companies and voucher “Housing”.
The foreign exchange market.
According to the Rules of exchange trade in the foreign currencies approved by the decision of Board of National bank of the Republic of Belarus 28/06/2001 №165 (read with 31/10/2003), open joint-stock company “Belarus currency-stock exchange” it is allocated by the right of the organization of the trades by a foreign currency.
The trades by a foreign currency at a stock exchange are carried out within the limits of Section of the currency market. The exchange trades are spent daily with use of electronic system of the trades. The cores currencies quoted at a stock exchange are: US dollar, Euro, the Russian ruble and the Ukrainian hryvna. The rates generated on results of the exchange trades, today are included into the category of the basic indicators of the currency market. On results of the trades the National bank of the Republic of Belarus establishes official rates of the Belarus ruble in relation to US dollar and ruble of the Russian Federation.
The total volume of the trades by all kinds of currencies for 9 months of 2005 was made 10.6 billion of rubles or 4 912 million US dollars in an equivalent.
Stock market.
According to the legislation of the Republic of Belarus for many securities the stock exchange is a unique admissible jail of transactions. To such papers concern: the state issue securities, bonds of National bank of the Republic of Belarus, the bond of local loans and the securities of the open joint-stock companies last an estimation of quality and reliability (listing) and admitted to the reference at a stock exchange. To participation in the trades by securities members of Section of the share market are supposed only. Transactions with securities are made in universal electronic trading system. The opportunity to participate in the trades with use of the automated workplaces located in trading halls of a stock exchange, or through the removed trading terminals is given to members of Section of the share market. The trades by securities are spent daily in following modes: “Continuous double auction”, “REPO (the fixed pricing)”, “REPO (free pricing)”, “Discrete auction”, “Forward transactions”, “Simple auction”, “Simple auction REPO”. The given modes are effectively used for primary accommodation of securities, the organization of their secondary reference and maintenance of processes of privatization.
Now in sector of the state securities and securities of National bank auctions of the Ministry of Finance on accommodation of the state securities are spent, within the limits of the secondary reference transactions in modes “continuous double auction” and “REPO” are made, the National bank of the Republic of Belarus on a regular basis spends simple auctions REPO. On the given segment of the market the institute a market-makers functions. Since September, 1st, 2005 the index on the market government securities/short-term bonds of the National bank of the Republic of Belarus pays off and published.
In sector of not state securities transactions with stocks and bonds of subjects of managing are made at primary accommodation and the secondary reference, and also privatization transactions. The fund of the state property of the Ministry of Economics of the Republic of Belarus uses exchange technologies for the organization of auctions on sale of actions belonging to the state for a foreign currency and the Belarus rubles, “discrete auction” and other accessible modes of the trades realizes state blocks of shares of stocks in a mode. Since October, 7th of 2005 in sector of not state securities the regular trades by bonds of banks have begun.
Participants of the trades can make transactions with not state securities with following conditions of calculations: T+0 (delivery of money and securities in day of fulfillment of the transaction), T+n (delivery of money and securities in the day certain by participants during the moment of fulfillment of the transaction), and also the transactions made on conditions REPO.
The total volume of the exchange trades by securities of all kinds for 9 months of 2005 has made 7.0 billion of rubles, or 3.2 billion of US dollars.
According to the legislation of the Republic of Belarus the stock exchange carries out obligatory registration of all accomplished on the over-the-counter market of transactions with securities of the open joint-stock companies, and also since January, 25th, 2005 transactions with nominal privatization checks “Housing”. For nine months of 2005 by a stock exchange it has been registered 1066 over-the-counter transactions with stocks of open joint-stock company for a total sum of 15.96 billion rubles (7.4 million of US dollars) and 33653 transactions with  voucher “Housing” at actual cost of 19083,7 million rubles (on a face-value 24.0 million rubles). For service of processes of registration system BEQAS functioning on the basis of the Internet-technologies is used.
The term market.
Since October, 2004 the stock exchange has started trading by financial tools of the term market on a constant basis. The exchange trades by tools of the term market are spent in electronic trading system every working day simultaneously on all tools in a mode “continuous double auction”. As participants of the trades act the members of Section of the term market. Calculations under made transactions are spent in uniform settlement-clearing system, in which function of a clearing bank carries out National bank of the Republic of Belarus, and function of clearing - a stock exchange. The toolkit of the given market is presented by future contracts on rates of foreign currencies and interest rates in the market of the state securities.
Information work.
The major principle of the organization of activity of a stock exchange is development of information technologies and increase of a transparency of the financial market of republic. With a view of realization of the given principle by a stock exchange it is created and successfully functions three basic automated information products: the official Internet-site of a stock exchange, the Belarusian automated quoted system of a stock exchange (BEQAS), Information system “Stock market”. The official Internet-site of open joint-stock company “Belarus currency-stock exchange” is the central element of system of disclosing of the information by results of activity of a stock exchange in the currency, share and term markets.
“The Share market” accumulates data about a condition and the processes occurring on a republican securities market. The basic suppliers of the information are open joint-stock company “Belarus currency-stock exchange”, Committee under securities at Ministerial council, National bank, the Ministry of Economics and the Ministry of Finance. Except for the data, directly concerning the stock market, in system the information on a condition of the currency and monetary market is concentrated; contain actual financial and social and economic news of Belarus, the CIS countries and the world.
BEQAS is the information-quoted system functioning on the basis of the Internet-technologies, intended for search of the counterpart for fulfillment of transactions with various kinds of securities, and also serving processes of obligatory registration in the unorganized market of transactions with stocks of the open joint-stock companies and the nominal privatization checks “Housing” accomplished on the over-the-counter market. For today the system is the only thing in republic a high-grade source of the information on a condition the over-the-counter market of the Belarusian enterprises.
Besides the stock exchange acts as the supplier of the information for republican news agencies, and also the leading mass-media focused on illumination of world economic processes.

To my mind it would be necessary to know a little bit more about securities markets, than I know now. As I have already said securities are bought and sold at two types of securities mar¬kets: primary markets, which issue new securities, and second¬ary markets, where previously issued securities are bought and sold. If a company wants to sell a new issue of stock or bonds it usually negotiates with an investment bank, or underwriter, who sells the securities for it. The underwriter buys the securities from the corporation and resells then to individual investors through the secondary market.
Organized security exchanges have developed to make the buying and selling of securities easier. The securities exchanges consist of the individual investors, brokers, and intermediaries who deal in the purchase and sale of securities. Security exchanges do not buy or sell securities; they simply provide the location and services for the brokers who buy and sell.
A stockbroker handles stock transactions. A stockbro¬ker buys and sells securities for clients. Stockbrokers act on the clients’ orders. Stockbrokers receive a fee and are associated with a brokerage house. To trade on the exchange, a “seat” must be purchased. A seat is a membership. The members represent stockbrokers. When a stockbroker calls in an order to sell, the member representing that broker looks for a buyer at the price requested. When a broker calls in an order to buy, the exchange member looks for a buyer at the price offered.
The largest and best-known exchange in the USA is the New York Stock Exchange (NYSE) also called the “Big Board”. There are 1,300 seats on the NYSE and approximately 2,000 stocks and 3,400 bonds are traded daily. In. order to be listed on the NYSE, a firm has to meet the following requirements:
1. Pretax earnings of at least $2.5 million in the previous year.
2. Tangible assets of at least $16 million
3. At least 1 million shares of stock publicly held, and others.
The second largest stock exchange in the USA is the Ameri¬can Stock Exchange (AMEX). It is located in Manhattan and has about 500 full members and 400 associate members. AMEX oper¬ates in much the same way as NYSE, but smaller companies may qualify for listing.
There are also regional stock exchanges that serve regional markets.
The over the counter market (OTC) sells and buys unlisted securities outside of the organized securities exchanges. About 5,000 brokers of OTC are scattered all over the country. They trade unlisted stocks and bonds by phone and keep in contact with each other.
The prices of the securities are established by supply and demand. Electronic screens in the offices of the brokerage firms display OTC transactions, so brokers continually keep cus¬tomers up to date on the latest prices.
Options are traded on the major stock exchanges, but also on a special market for options, the Chicago Bond Options Ex¬change (СВОЕ).

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