Archive for May 29th, 2008
The most important stock exchange of Jamaica is the Jamaica Stock Exchange established in 1968 in Kingston, Jamaica.
The main objectives of the Jamaica Stock Exchange may be listed as follows:
The main goal of the Jamaica Stock Exchange is the development of the stock market and the stock exchange in Jamaica.
It is monitored that the Stock brokers in the stock exchange operate in the highest standard possible.
Rules are formulated to gain the public confidence in the stock market and the stock market brokers.
Jamaica Stock Exchange facilitates the transaction of the stock market business.
The Jamaica Stock Exchange conducts research and circulates information in the domestic and international market.The types of shares offered in the Jamaica Stock Exchange are the following:
- Ordinary or common shares
- Preference Shares
- Corporate Bonds
The Jamaica Stock Exchange do not trade in Government bonds. The Government bonds are traded in the Bank of Jamaica in the over the counter market.
Listing of securities in the Jamaica Stock Exchange
The securities are listed on the Jamaica Stock Exchange depend on the Council of the Exchange . The Council in turn transfers the responsibility on a duly appointed committee.
The companies which want their shares to be listed in the Jamaica Stock Exchange must fulfill the following eligibility criteria:
- The total loan capital and the issued share should equal or exceed $200,000. the portion of the share capital should not be below $100,000.
- For ordinary shares there should be a minimum of 100 shareholders holding not less than $50,000.
The Jamaica Stock Exchange has become fully automated since January 2000. Its automated trading platform is known as Sunrise . The Jamaica Central Securities Depository was established in 1998 and since then the back office operations like clearing and settlement is fully automated. The following are the advantages of the automated trading system introduced in Jamaica:
- Efficiency is enhanced due to perfection in the entire system.
- Increase in the processing fees
- Reduction of the operating costs
- Reduction in the risk associated with the clearing and the settlement of transactions.
- Shortening of the settlement cycle brought about by automation.
To help the Broker- Members’ clients in certain situation, the Jamaica Stock Exchange has created a Compensation Fund that compensates their losses. The contributions in the Compensation Fund is made by the Broker-members after considering their equity and preferred transactions.
May 29th, 2008
Brief Introduction to the Dhaka Stock Exchange The Dhaka Stock Exchange is the prime stock exchange of Bangladesh established in 1954 in Motijheel. Stock exchanges started in Bangladesh with the Dhaka Stock Exchange.
Evolution of the Dhaka Stock Exchange
The need to develop a new stock exchange in Bangladesh was realized by the government of Bangladesh ever since Calcutta Stock Exchanges had stopped the transactions in Pakistani shares and securities.
The Dhaka Stock Exchange basically started with the formation of the Provincial Industrial Advisory Council.
Initially it was named the East Pakistan Stock Exchange Association Ltd. It was revised in 1964 and since then it has used the present name.
Although the Dhaka Stock Exchange was incorporated in 1954 it started trading formally from 1956.
Trading in the Dhaka Stock Exchange discontinued for a span of five years following the liberation war of 1971. Trading was regained from 1976.
In 1976, there were nine listed companies in Dhaka Stock Exchange with a paid up capital of Tk 137.52 million.
The Dhaka Stock Exchange actually witnessed high growth in 1983 when the market capitalization reached Tk 812 million.
By 1987, there was a spurt in the market size with the number of listed companies shooting up to 92.
With the opening up of the economy in the 90s the Dhaka Stock Exchange also rapidly developed.Structure of the Dhaka Stock Exchange
By 2001 the number of listed securities in the Dhaka Stock Exchange was 244, number of listed companies was 224, number of listed debentures was 10, the number of shares issued by the listed companies was 666,553. The number of Mutual Funds were 72,250 and the market capitalization was Tk 72,168 million.
Nature of Dhaka Stock Exchange
The Dhaka Stock Exchange was a physical stock exchange in its initial days when trading took place in the open outcry system. But with the advent of new technology, the traditional mode of trading was abolished and was replaced by a fully automated computerized Stock Exchange. The trading session occurs in Five parts- the pre-opening session, opening session, continuous or regular trading session, closing session or post-closing session.
Functions of the Dhaka Stock Exchange
The following are the functions of the Dhaka Stock Exchange:
- Listing of Companies
- Providing screen based automated trading of securities.
- Settlement of trading following the Settlement of Transactions Regulation.
- Market Administration and Control
- Market Surveillance
- Publication of monthly review
- Monitoring the activities of the listed companies following the Listing Regulations.
- Formation of the Investors’ Grievance Cell
- Formation of the Investors’ Protection Fund
- Online Notification of price sensitive and other information about the listed companies.
May 29th, 2008
The Toronto Stock Exchange is the largest stock exchange in the world, the largest in Canada and the third largest in the world.
Evolution of the Toronto Stock Exchange
The Toronto Stock Exchange was formed out of the “ Association of Brokers ” in 1861. Initially it was started by 24 men who gathered at the Masonic Hall . It assumed a formal look with the incorporation of the Legislative Assembly of Ontario in 1878. Since then the Toronto Stock Exchange has shown continuous expansion except for the years that were the victims of the First World War. The Toronto Stock Exchange merged with the Standard Stock and Mining Exchange in 1934 although the name Toronto Stock Exchange was retained. In 1977, the Toronto Stock Exchange started the Computer Assisted Trading System that was used for the quotation of the less liquid entities. Soon the Toronto Stock Exchange became the sole trading ground for senior equities. In 2001 the Toronto Stock Exchange acquired the Canada Venture Exchange and it was renamed the TSX Venture Exchange in 2002.
Products and Services Offered by the Toronto Stock Exchange
Attribution Choices
The market participant has the choice either to reveal or to conceal his identity while trading. He can reveal his identity by advertising on an order-by-order basis.
Compliance Alerts Reporting System
The Toronto Stock Exchange produces daily reports which functions as an alert on a post trade basis.
Cross facilities
The Toronto Stock Exchange produces reports on the internally matched trades and integrates them in the overall share market reports. With the help of such printing materials the market participants can satisfy the varying needs of the clients.
Iceberg Orders
The Iceberg Orders serve as a protection against the large limit orders. It slices off the reserves in the market that are unexposed. The order is also shielded against the trade troughs. In this way the Iceberg Orders impart additional to the Toronto Stock Exchange.
Market Maker System
The following are the different functions of the Market maker of the Toronto Stock Exchange
- Calling a two sided market and providing market continuity within a pre-specified range.
- Enhancing the market liquidity and depth.
- Maintaining the activity in the market.
- Assisting in opening and helping in inquiries and anomalies.
Market on Close
This facility enhances the liquidity, elective anonymity and confidentiality at the closing price. This creates an ideal situation for both the index players who are seeking closing prices.
May 29th, 2008
The New York Stock Exchange , alternatively named as the “Big Board” is the largest stock exchange in the world based on dollar volume. It is a stock exchange residing in the city of New York . When the number of listed companies is considered , the New York Stock Exchange ranks second in the stock markets of the world.
Size of the New York Stock Exchange
The share volume of the New York Stock Exchange outperformed that of NASDAQ during the 1990s. The global capitalization as on 2006 is $23.0 trillion.
Operating Body
The New York Stock Exchange is operated by the NYSE Euronext that was a result of the amalgam between the Archipelago Holdings and Euronext.
Products and Services offered by the New York Stock Exchange
There are a variety of products and services offered by the New York Stock Exchange that can be discussed under the following heads.
- New York Stock Exchange Equities
The New York Stock Exchange Equities are traded in the Hybrid market that is formed out of an optimum combination of the auction market and the automated trading. The Hybrid market offers its customers a wide spectrum of Trade- Execution choices.
- New York Stock Exchange Bonds
Among all the exchanges the New York Stock Market has the largest centralized bond market .
- New York Stock Exchange Arca Equities
The New York Stock Exchange Arca Equities are the fully electronic equity market which has the properties of the current market structure and application of the new technology.
- New York Stock Exchange Arca Options
The New York Stock Exchange Arca trades in about 175,000 option products and integrates the floor based participants electronically.
- Arca Edge Over the Counter Bulletin Board
The Arca Edge trades in over the counter bulletin boards stocks in a very fare way . At the same time it reaps the benefits of the New York Stock Exchange Arca platform.
- Technology Services
The NYSE uses the New York Stock Exchange Transact Tools .
- Connectivity to the New York Stock Exchange markets
The New York Stock Exchange offers excellent connectivity to the clients participating in the market. The access to the New York Stock Exchange is flexible and technologically advanced.
- Exchange Traded Funds
- The Exchange traded fund is an index fund that is comprised of a basket if funds that are traded throughout the day.
May 29th, 2008
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