ONLINE TRADING IN KOREA
|
|
- Gordon Armstrong
- 8 years ago
- Views:
Transcription
1 ONLINE TRADING IN KOREA Online trading has become the dominant mode of trading in Korea. It currently contributes over 50% of total market trading value. Online subscription of shares is also available online. In 2000, 690 companies raised funds by public offers via the Internet. As in other overseas markets, online trading in Korea is mainly a retail investor phenomenon. The success of online trading in Korea is attributed to the following factors: the high penetration of personal computers and the widespread use of Internet and broadband; the large retail investor base; securities firms initiatives to developing online trading; appropriate regulatory changes; and the economic pick-up in The Korean online trading market should continue to grow but at a slower pace. Competition among securities firms would remain vigorous, stimulating continuous efforts in system upgrade and service enhancements. However, the potential risks resulting from the increased trading activities and the electronic trading mode would require further regulatory changes to strengthen investor protection. CONTENTS 1. Introduction Development of online trading Popularity of online trading in Korea Online order placement Drivers for the development of online trading Regulatory measures Popular use of Internet and large retail investor base in Korea Initiatives of securities firms Outlook for Korea s online trading Steady but slower growth of online trading Continued competition among securities firms Investor protection and regulatory changes...13 [OTK.DOC] CSU - Research & Policy, HKEx
2 1. INTRODUCTION Online trading in the Republic of Korea or South Korea (hereinafter referred to as Korea ) refers to trading whereby orders placed by investors via electronic media to the in-house system of the broker firms are routed to the trading system of the exchanges automatically on a straight-through basis. In Korea, there are four markets for securities and derivatives trading, namely, the Korea Stock Exchange (KSE), the KOSDAQ, Korea's Third Market (OTC Bulletin Board Market) and the Korea Futures Exchange. The markets are regulated by the Financial Supervisory Commission (FSC) (responsible for policy formulation) and the Financial Supervisory Services (FSS) (responsible for policy enforcement) of the Ministry of Finance and Economy (MOFE). Online trading is available for all these markets. Since the statistics available are mostly based on the Korean Stock Exchange (KSE) and KOSDAQ, the report will present mainly the trading activities of these two markets. However, reference will be made to the picture of online trading in Korea as a whole. 2. DEVELOPMENT OF ONLINE TRADING Online securities trading in South Korea was legally permitted in 1997 when the revised Securities and Exchange Act (SEA) authorised securities companies to receive client orders by electronic communications such as computer communication devices, Personal Digital Assistant (PDA), Automatic Response System (ARS) and mobile phone. In other words, investors in Korea can place orders online when trading stock, futures or options without the direct assistance of any securities firm staff. The first online order-placement channel introduced was the Home Trading System (HTS) 1 developed by securities firms. Through the HTS, investors could trade online on their PCs using the securities firm s self-developed software. Despite the fact that many securities firms provided such online trading service, online trading was not well-received in This was because the concept of e-commerce and online trading was new to the Koreans. Secondly, many investors were driven out of the Korean securities markets as a result of the severe economic depression caused by the Asian financial crisis. After April 1999, alongside the implementation of major financial reforms and corporate restructuring, the Korean economy began to pick up and the stock market sentiment improved. Meanwhile, many securities firms decided to seek new business potential and to reduce their operating costs by introducing online trading services. As a result, online trading in Korea started to flourish. By end-1999, 1 Home Trading System (HTS) is a software system developed by brokers through which individual investors can place orders, receive trading data, and confirm transactions. To trade via HTS, the investor has to install this broker-developed program at his personal computer. Then he can log in and start trading. Placing online orders via this channel offer investors a higher degree of security and reliability. [OTK.DOC] CSU - Research & Policy, HKEx
3 online trading contributed 19% of total securities trading value in Korea, up from just 2% in Thereafter, the market share of online trading continued to climb and exceeded 50% of the market total in In November 2001, the market share of online trading in KSE and KOSDAQ was 59% and 77% respectively. 2 In addition to the secondary market, online subscription of shares is also available in the primary stock market. Gold Bank Communications Co., Ltd. was the first firm in Korea to make a public offering of their shares through the Internet when it was listed on KOSDAQ in April In 1999, there were 180 companies raising funds via the Internet and the number of companies raising funds by public offers via the Internet grew to 690 in POPULARITY OF ONLINE TRADING IN KOREA Since 1998, online trading has become popular among Korean investors and has experienced significant development in several dimensions. The statistics presented below encompass online trading in the KSE and KOSDAQ. During January to August 2001, online trading value amounted to 1,398 trillion won, registering a substantial rise from 22 trillion won in In addition to the growth in its absolute value, online trading experienced a continuous increase in its percentage share of total trading value between 1998 and 2001 (Figure 1). (KRW trillion) Figure 1. Online trading value and market share in Korea Online trading value to total trading value 2,500 2,000 Total online trading value Market share of online trading value 47% 54% 55% 45% 1,940 35% 1,500 1,000 19% 1,398 25% 15% % (Jan - Aug) Note: Online trading includes online trading of stock, futures and options in the KSE and KOSDAQ. Source: Online Securities Trading in Korea, Korea Securities Dealers Association (KSDA). 5% -5% Securities available for trading online in Korea include stocks, futures and options. Over the past four years, stocks have had the largest online trading share, but other products have not been far behind. (Table 1) 2 Online Securities Trading in Korea by the Korea Securities Dealers Association (KSDA). [OTK.DOC] CSU - Research & Policy, HKEx
4 Table 1. Market share of online trading by product type Year Stocks Futures Options All products % 1% 2% 2% % 11% 18% 19% % 34% 35% 47% 2001 (Jan - Aug) 66% 43% 52% 54% Source: Online Securities Trading in Korea, KSDA. In value terms, online trading is dominated by stock trading which contributed 58% of total online trading value during Jan - Aug Nevertheless, the percentage share of online futures trading grew from 27% in 1999 to 41% during January to August 2001, reflecting the increasing popularity of online trading in futures. (Figure 2) (KRW trillion) 2,500 Figure 2. Online trading value and percentage share by type of securities 2,000 Options (O) Futures (F) <1% (O) 1,500 Stocks (S) 30% (F) 1% (O) 41% (F) 1,000 70% (S) 1% (O) 27% (F) % (S) 49% (F) 72% (S) 51% (S) (Jan - Aug) Options (O) Futures (F) Stocks (S) , Source: Online Securities Trading in Korea, KSDA. The number of online trading accounts increased significantly from 1.6 million in 1998 to 38.1 million in 2000 but decreased to 33 million in August Nevertheless, the share of online trading accounts as a percentage of total investor accounts increased continuously from 4% in 1998 to 49% in August 2001 (Figure 3). [OTK.DOC] CSU - Research & Policy, HKEx
5 (Million a/c) 120 Figure 3. Online trading acounts and their percentage share of total number of investor accounts Online trading a/c Non-online trading a/c 37% 60 17% 4% 49% (Aug) Online trading a/c Non-online trading a/c Source: Online Securities Trading in Korea, KSDA. Concerning online trading by investor type in October 2001, retail investors captured 98% of the total online stock trading value and institutional investors 2%. Investors online trading activities have been increasing in terms of number of orders and trading amount. In 2000, an investor account had an average of 13 online trades per month, more than double that in 1998; and the trading amount per account in a month was 50 million won, more than 3 times that in (Table 2) Table 2. Trading statistics obtained from online investor accounts Year No. of orders per month per account Trading amount per order (million won) Trading amount per month per account (million won) Aug Source: Annual Report (Year 2001), KSDA; Online Securities Trading in Korea, KSDA. 4. ONLINE ORDER PLACEMENT No matter whether trading online or offline, securities trading on the Korean exchanges can only be done by securities firms authorised by the exchange, i.e. exchange members. 3 An investor wishing to trade securities has to open an account with a securities firm. When placing an order with the securities firm, whether 3 Members of KSE can trade the securities on KSE including stocks, bonds, stock futures and options while members of KSDA can trade stocks on KOSDAQ. [OTK.DOC] CSU - Research & Policy, HKEx
6 online or offline, the investor is required to pay a good faith deposit 4 in cash. When an order is input to the system of the securities firm, the system would first check if the requirement of the good faith deposit has been met. Then the orders are transmitted directly to the stock exchange via the computerised order-routing system offered by the exchange or developed by the securities firm. In Korea, securities firms can receive client orders (1) by written document; (2) by phone, telegram, fax; or (3) via computer or similar electronic communication methods (i.e. orders received online). In offering online trading services, the securities firm needs to enter into a prior agreement with the investor on this type of order placement and is obliged to fulfill certain requirements imposed by the exchange. 5 These requirements apply to online services provided to pure online investors as well as to investors trading online using existing offline trading accounts. Investors can trade online via HTS, PDA, mobile phone or ARS (Automatic Response System). According to KSDA, HTS remained the most popular channel, contributing 86% of the total online trading value as of August The online trading process is fully automated. Online orders received by securities firms are routed automatically and directly to the trading system of the Korean exchanges without manual re-input. In Korea, the large securities firms usually develop their own online trading platforms while smaller ones can make use of the system offered by KOSCOM, a subsidiary of KSE DRIVERS FOR THE DEVELOPMENT OF ONLINE TRADING Several factors contribute to the success of online trading in Korea. Apart from the economic pick-up in 1999, appropriate regulatory measures, rapid advancements in information technology and the high penetration of personal computers as well as the initiatives of securities firms in developing online business are all contributing factors. They are described below. 4 The deposit rate is set by the securities firm and the amount of deposit is determined by multiplying the deposit rate by the cash consideration of the order. Such deposit is needed for investors buying or short-selling the stocks. Selling of stocks already owned does not require the placement of deposits in the account. 5 For the KSE, the requirements are based on the Enforcement Rules of the Business Regulation of KSE ( KSE Rules ). Other markets including the KOSDAQ and the Korea Futures Exchange have a similar set of rules governing such service in their markets. According to the KSE Rules, the requirements include: (1) the securities firm must be able to confirm the authenticity of the user, maintain records of the online orders and notify its online investor of the details of orders executed; (2) the investor should be able to confirm the details of an online order; (3) the securities firm s system should have records of rejected orders and prevent unauthorised users from submitting orders, withdrawing cash or securities etc. 6 Online securities trading in Korea, Management Brief, Issue No. 7 (by Planning & Research, HKEx). [OTK.DOC] CSU - Research & Policy, HKEx
7 5.1 Regulatory measures Measures relating to online trading Article 109 of the Securities and Exchange Act (the 12th revision) (SEA) states that a securities company may be entrusted with securities transactions by means of electronic communication and other manners. As a result, online trading was legally permitted with effect from January Since then, with online trading, the securities trading process was simplified without the need for manual assistance by a broker staff as in the case of orders received via written documents, telephone and facsimile in the past. Further to this, changes in rules and regulations 7 have occurred from time to time to accommodate the rapid development of online trading. Later in February 1999, the SEA was further revised to allow securities firms to establish Cyber Branches. This means that securities firms are free to open branches with speedy Internet connections like Cyber/Internet café where investors can trade securities online. As a result, resources for business operations can be reduced Measures relating to securities trading To encourage securities trading, brokerage commission was fully liberalised from September The brokerage commission rates, based on the transaction value, are freely determined by individual securities firms. The securities firms are free to compete for online traders by offering attractive commission rates. Previously, the Exchange had the authority to set the good faith deposit rate. In April 1998, the requirement for the good faith deposit was liberalised. Since then the securities firms can determine the amount or ratio of good faith deposit for a customer and the collection method. 9 This has greatly stimulated short-term investment through day trading. As a matter of fact, liberalisation of both brokerage commissions and good-faith deposit are considered the most important measures in boosting online trading in Korea. To encourage more trading, the government relaxed the daily price fluctuation limit for stocks and stock index futures. From December 1998, the trading hours were extended. In May 2000, lunchtime breaks were abolished to promote continuous trading during the day. 7 At present, the regulation of online securities trading in Korea is based on Article 109 of the SEA. FSC and FSS regulate the securities markets in Korea in accordance with the provisions of the Act. In addition, each exchange has its own set of rules to regulate online trading in its market. 8 Before this rule became effective, securities firms had to meet certain facility and personnel requirements for opening new branches. 9 Yet the securities firms are required to inform the Exchange whenever they change the rates. [OTK.DOC] CSU - Research & Policy, HKEx
8 After March 2000, real-time disclosure of quotation information by the Exchange has been widened to include the best 5 price queues and their aggregate order amount. From January 2002, this disclosure was further broadened to include the best 10 price queues and their aggregate order amount Measures protecting investor To protect investors, securities firms offering online trading services are required to enter into a special agreement with their online customers and install appropriate systems to ensure a secure and stable process for online trading. Apart from this, the Basic Act on E-commerce a privacy protection e-commerce act and an electronic signature act were enacted Measures for the primary market For the primary securities market, the revised SEA in May 2000 allows companies wishing to make an Internet public offering of under 1 billion won to do so without having a securities firm as a lead manager, and exempts these companies from filing a registration statement with the FSC. As a result, many small to medium venture companies were attracted to list on the KSE and Internet public offerings became popular. Meanwhile, more stringent issuer disclosure requirements were introduced to regulate the companies wishing to have Internet public offerings. 5.2 Popular use of Internet and large retail investor base in Korea In the last decade, Korea has witnessed rapid growth of Internet usage penetration. As of September 2001, the number of Internet users exceeded 24 million and reached a penetration rate of 50% of the population in Korea 10 (Figure 4). Further to this, 95% of the households with access to the Internet use broadband networks which provide higher efficiency in connectivity and data transmission. 11 To date, Korea is among the countries with highest PC penetration rate in the world. 12 In addition, the government has been keen in building up a knowledge-based society in Korea. 13 All these have created a favourable environment for online business to develop. 10 Korea Network Information Centre ( 11 Online trading are there any limits? by Chu Jin-hyung in Asian Securities Analysts Federation 2001 Conference. 12 Online securities trading in Korea, Management Brief, Issue No. 7 (by Planning & Research, HKEx). 13 This is reflected in some of its policies: (1) to promote PC usage, computers are distributed to students and teachers free during the Comprehensive School Informatisation Project ( ); (2) Internet training for housewives, military personnel, farmers and fishermen is organised by the government department; and (3) low tariff for Internet access is permitted. [OTK.DOC] CSU - Research & Policy, HKEx
9 Figure 4. Number of Internet users in Korea ( Sep 2001) (Unit: 1,000) 25,000 24,120 20,000 19,040 15,000 10,860 10,000 5, ,103 1, /2001 Source: Korea Network Information Centre (website). The high retail participation in the Korean securities markets is another fundamental factor for the success of online trading in Korea. For the Korea Stock Exchange, retail investors contributed up to 70-80% of total stock trading value (Figure 5). The large and active retail investor base has attracted many securities firms to embark on online trading business. 80% Figure 5. Percentage share of retail investors in total stock trading value of the Korea Stock Exchange 78% 76% 77% 76% 74% 72% 70% 71% 73% 72% 68% 67% 66% 64% 62% 60% Source: Stock, Korean Stock Exchange, [OTK.DOC] CSU - Research & Policy, HKEx
10 5.3 Initiatives of securities firms Securities firms have been playing a vital role in the development of online trading in Korea. As of September 2001, 38 out of 63 securities firms in Korea (or 60%) provide online trading services (Table 3). In contrast with pure online securities firms in the United States, most of the online securities firms in Korea are the online trading arm of traditional full-service firms. Given that, it is not surprising that all the 38 online securities firms are domestic firms. Table 3. Securities firms providing online trading as of September 2001 Securities firms Available Unavailable Total Domestic Foreign Total Source: Development of online securities trading in Korea, Securities Times, 14 November Competition among the securities firms is vigorous. Yet the top 5 firms already take a substantial proportion of total stock trading (Figure 6). To compete, many firms have invested a huge amount of capital in developing their online systems and offering quality customer service. Further to this, a one-stop service is promoted by most of the securities firms. 14 Some securities companies have established alliances with banks to facilitate funds transfer in order to become full-service online financial institutions. 60% Figure 6. Percentage contribution to stock trading by the top 5 securities firms in Korea 50% 47% 49% 46% 40% 36% 37% 41% 30% 20% 10% 0% /2001 Note: The top 5 firms are Samsung, Hyundai, Daishin, Daewoo and LG Investment. Yet, for 1996 & 1997, Dongsuh instead of Samsung were among the top five while the other four remained the same. Source: Securities Statistics Yearbook ( ), KSE; Stock (October 2001), KSE. 14 According to Management Brief No. 7, the services offered by these firms include real-time information and data (i.e. corporate news, index and price information, research paper), online order placement, alarm for specific stock through alerts, chat-room facility for clients and online investment consultancy. [OTK.DOC] CSU - Research & Policy, HKEx
11 Despite the majority of securities firms entering the online business, the online trading market remains highly concentrated in a small number of large companies. The market share of the top five brokers in online trading (which were more or less the same top five for overall stock trading), though declining in the past four years, was still high at around 50% as of September 2001 (Figure 7). To some extent, the dominance of the top five securities firms in Korea may be conducive to the development of the online trading market as the huge initial development cost for new service could only be afforded by major players with large client base. 80% Figure 7. Percentage contribution to online stock trading by the top 5 securities firms in Korea 70% 60% 50% 40% 30% 20% 10% 0% /2001 Note: The top 5 firms are Samsung, Hyundai, Daishin, Daewoo and LG Investment. Source: KSDA; reprint from Online trading are there any limits? by Chu Jin-hyung in Asian Securities Analysts Federation 2001 Conference. Brokerage commission was fully liberalised in September When online securities trading first started in 1997, securities companies set the commission fee for transactions at around 0.5%, the same as for traditional transactions. Since investor demand for online trading has a high degree of price elasticity, securities firms began to reduce their fees and a price war started in August Since then, securities firms have been competing vigorously against each other in fee schemes, such as exempting inactivity fees and providing various fee packages for trading. 15 As of March 2001, commissions for online trading dropped to around 0.1% to 0.025% of trading amount, compared to around 0.5% for traditional securities trading. 16 Commission fee reduction is beneficial to investors but it also means that the profit margin for online securities firms is getting smaller. 15 Online trading are there any limits? by Chu Jin-hyung in Asian Securities Analysts Federation 2001 Conference. Also, commission schemes vary among firms. Some firms adopt a fixed rate system while others adopt variable rates, i.e. higher transaction values are rewarded with lower commission rates. 16 Annual Report (Year 2001), KSDA. [OTK.DOC] CSU - Research & Policy, HKEx
12 6. OUTLOOK FOR KOREA S ONLINE TRADING 6.1 Steady but slower growth of online trading Alongside the advance in information technology, the usage of computers and other electronic communication devices among individual investors will continue to grow. With the securities firms concerted promotional efforts, online securities trading will have the potential to become even more popular. However, it appears that online trading in Korea has passed its high-growth stage, as reflected from Figure 1 and Figure 3. Its market share is expected to grow at a slower pace from now on as the market may be approaching saturation. Based on the fast-growth experience in 1998, the growth of online trading in value terms will likely depend on growth in retail participation in the stock and derivatives markets as well as on market sentiment. 6.2 Continued competition among securities firms Given the popularity of online trading in Korea, it is inevitable for the securities firms to compete in online trading business. This is especially important for those serving domestic retail investors. The keen competition has already eaten up the market shares of the largest online players. From Figure 7, the contribution to online stock trading by the top 5 securities firms has been on a downtrend over the past four years. At present, strategies adopted by the securities firms in capturing market share centre around price reduction and service offering. Since the liberalisation of brokerage commission in 1997, commission rates have been lowered significantly. Rather than engaging in cut-throat competition in commission rates, securities firms have steered their business strategy to providing customers with better services. In doing so, the firms hope that higher commission fees can be derived in the longer run. In addition to enhancing service quality, securities firms also adopt other initiatives to expand their customer base and retain the loyalty of online investors. Some of the measures include offering multiple online trading media, one-to-one online talks with analysts, and providing call centres to support online traders. Meanwhile, the securities firms are expected to work towards system upgrades to improve speed and stability and to enhance system security. Following the global trend of removing cross-industry barriers in the banking, insurance and securities industries, companies in these disciplines in Korea are allowed to enter each other s businesses as non-core business from January Accordingly, competition in the securities business will be intensified. An increase is expected in joint-ventures or mergers with foreign securities firms specialising in online trading, cooperative strategic alliances, small-/medium-sized securities firm specialising in online trading only, or mergers between securities firms. Meanwhile, the weaker firms will be closed or acquired. [OTK.DOC] CSU - Research & Policy, HKEx
13 6.3 Investor protection and regulatory changes The convenience in order placing offered by online trading and the relaxed regulatory measures for trading have not only boosted securities trading volume and price volatility 17, but also stimulated more day-trading and speculative trading activities. Daily stock trading volume on the KSE increased from 12 billion shares in 1997 to 74 billion shares in As of 2000, day trading was responsible for around 40% of total stock trading in KSE. Further to this, in view of the increasingly sophisticated technology employed for providing enhanced online trading services, this will provide a breeding ground for online crimes. Currently, there are no rules and regulations tackling these potential risks. It is expected that regulators will consider the above in their policy formulation. 17 According to KSDA Annual Report (Year 2001), the average daily volatility of stock prices was between 11 to 14 (index) points in the period 1996 to 1998 whereas the volatility in 2000 was around 16 (index) points. [OTK.DOC] CSU - Research & Policy, HKEx
14 References 1. Annual Report (Year 2001), the Korea Securities Dealers Association (KSDA). 2. Development of online securities trading in Korea, Securities Times, 14 November Online securities trading in Korea, Management Brief, Issue No. 7 (by Planning & Research, HKEx). 4. Online securities trading in Korea (Monthly Statistics), KSDA. 5. Online trading are there any limits? by Chu Jin-hyung in Asian Securities Analysts Federation 2001 Conference. 6. Securities Statistics Yearbooks ( ), Korean Stock Exchange (KSE). 7. Stock (Monthly Statistics), KSE. 8. Website of Korea Stock Exchange ( 9. Website of Korea Network Information Centre ( 10. Website of KOSCOM ( [OTK.DOC] CSU - Research & Policy, HKEx
How To Trade Online In Hong Kong
36 By Corporate Strategy Unit Research & Policy Online trading where investors directly place orders via electronic channels was first introduced in Hong Kong in 1998. Given unfavourable market conditions,
More informationONLINE TRADING IN TAIWAN
ONLINE TRADING IN TAIWAN Online trading is still not the mainstream. In December 2001, only 8.7% of the total market turnover value was conducted online and 16% of total investor accounts were online accounts.
More informationINDUSTRY OVERVIEW THE STOCK MARKET IN HONG KONG. History of the Stock Exchange
This overview contains information derived from publicly available government or official sources referred to in this prospectus. The Company believes that the sources of such information are appropriate
More informationThe Korea Stock Exchange ( KRX ) IPO Overview
The Korea Stock Exchange ( KRX ) IPO Overview 1. Regulatory Background 1.1 Overview of Regulatory Background The Korea Composite Stock Price Index ( KOSPI ) market is the KRX s main board listing medium
More informationAnswers to Concepts in Review
Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the
More informationFINANCIAL INSTITUTIONS AND MARKETS
FINANCIAL INSTITUTIONS AND MARKETS BIG BANG ON KOREA S CAPITAL MARKETS: REFORM LEGISLATION AND ITS IMPACT By Cho Sung-hoon Introduction Along with commercial banks, capital markets are an integral part
More informationONLINE TRADING IN THE UNITED KINGDOM
ONLINE TRADING IN THE UNITED KINGDOM The present level of online trading is low. Online investors constituted roughly 3% of retail investors and online trading contributed 20% of total trades using execution-only
More informationCHAPTER 2 OVERVIEW OF THE HONG KONG STOCK MARKET
CHAPTER 2 OVERVIEW OF THE HONG KONG STOCK MARKET INTRODUCTION 2.1 This chapter provides a brief overview of the Hong Kong stock market, summarizes the problems relating to penny stocks or micro caps, and
More informationSBI E*TRADE SECURITIES Co., Ltd. Financial Review
SBI E*TRADE SECURITIES Co., Ltd. Financial Review Interim Fiscal Year 2006 October 26, 2006 SBI E*TRADE SECURITIES Co., Ltd. Stock code: 8701 The items in this document are provided by E*TRADE SECURITIES
More informationThe Latest Amendments to Japan's Securities and Exchange Law
The Latest Amendments to Japan's Securities and Exchange Law Sadakazu Osaki On 23 May 2003 the latest amendments to Japan's Securities and Exchange Law were approved by the Diet. The amendments introduce
More informationCORPORATE MEMBERS OF LIMITED LIABILITY PARTNERSHIPS
1. INTRODUCTION CORPORATE MEMBERS OF LIMITED LIABILITY PARTNERSHIPS 1.1 This note, prepared on behalf of the Company Law Committee of the City of London Law Society ( CLLS ), relates to BIS request for
More informationInvestment Banking in Japan. Junichi Ujiie President and Chief Executive Officer The Nomura Securities Co., Ltd.
Investment Banking in Japan Junichi Ujiie President and Chief Executive Officer The Nomura Securities Co., Ltd. Good evening ladies and gentlemen. It is really a pleasure to see all of you here at the
More informationBanking Fees in Australia
Banking Fees in Australia The Reserve Bank has conducted a survey on bank fees each year since 1997. The results of the latest survey show that banks aggregate fee income was unchanged in 2. Fee income
More informationFirst Half 2014 Taiwan Life Insurance Market Overview
First Half 2014 Taiwan Life Insurance Market Overview I. Life Insurance Industry Business and Financial Overview A. Business Statistical Overview The life insurance industry in Taiwan delivered NTD1,340.5
More informationOverview of Korean ETF Market 2010. 8
Overview of Korean ETF Market 2010. 8 1 Agenda About ETFs Overview Key success factors of ETFs New Trends of Korean ETF Industry Challenges to Korean ETF Industry 2 About ETF 3 What is ETFs ETFs are open-end
More informationThe Financial Reform and Mutual Fund Industry in Korea
International Review of Business Research Papers Vol.4 No.5 October-November 2008 Pp.207-218 The Financial Reform and Mutual Fund Industry in Korea Min, Sung-Ky Korean economy has developed rapidly during
More informationMedium-term Business Plan
Mitsubishi UFJ Financial Group, Inc. Medium-term Business Plan Tokyo, May 15, 2015 --- Mitsubishi UFJ Financial Group, Inc. (MUFG) announced today that it has formulated its medium-term business plan for
More informationFinancial Markets and Institutions Abridged 10 th Edition
Financial Markets and Institutions Abridged 10 th Edition by Jeff Madura 1 12 Market Microstructure and Strategies Chapter Objectives describe the common types of stock transactions explain how stock transactions
More informationImportant Notice of Trading Shanghai A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect
Important Notice of Trading Shanghai A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect Please be informed that the followings are applicable to any transactions in relation to trading
More informationRULEBOOK ON PENSION FUND INVESTMENT
Unofficial Translation AGENCY FOR SUPERVISION OF FULLY FUNDED PENSION INSURANCE RULEBOOK ON PENSION FUND INVESTMENT Skopje, June 2004 According to Article 105 paragraph (3), Article 106 paragraphs (1)
More informationHow Securities Are Traded. Chapter 3
How Securities Are Traded Chapter 3 Primary vs. Secondary Security Sales Primary new issue issuer receives the proceeds from the sale first-time issue: IPO = issuer sells stock for the first time seasoned
More informationMonopoly Regulation and Fair Trade Act
Monopoly Regulation and Fair Trade Act December 2, 2011 (Only the Korean text is/are authentic) Korea Fair Trade Commission page 1 / 112 Monopoly Regulation and Fair Trade Act [Implemented on December
More informationEconomic perspective of the Indian stock market performance
Economic perspective of the Indian stock market performance With the Indian stock markets taking a sharp dip from the heights of April 2006, the doomsday predictions abound, we believe that there is no
More informationThe CMU Fund Order Routing and Settlement Service
The CMU Fund Routing and Settlement Service by the Financial Infrastructure Department Investment funds have become an increasingly important international financial intermediation channel in addition
More informationSURVEY ON THE USE OF ONLINE FACILITIES FOR TRADING PURPOSES BY DEALERS REGISTERED WITH THE COMMISSION AS AT 30 APRIL 2000
SURVEY ON THE USE OF ONLINE FACILITIES FOR TRADING PURPOSES BY DEALERS REGISTERED WITH THE COMMISSION AS AT 30 APRIL 2000 EXECUTIVE SUMMARY The use of online trading facilities and the provision of online
More informationABSTRACT NUMBER 007-0001. Arvi Arunachalam Florida International University 305-348-2680
ABSTRACT NUMBER 007-0001 Arvi Arunachalam Florida International University 305-348-2680 Krishnan Dandapani Florida International University 305-348-4241 Sushil K. Gupta Florida International University
More informationManagement s Discussion and Analysis
Management s Discussion and Analysis 6 Financial Policy Sysmex regards increasing its market capitalization to maximize corporate value an important management objective and pays careful attention to stable
More informationINDUSTRY OVERVIEW SOURCE OF INFORMATION. Report prepared by Euromonitor
The information that appears in this Industry Overview has been prepared by Euromonitor International Limited and reflects estimates of market conditions based on publicly available sources and trade opinion
More informationCOMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT. Accompanying the document. Proposal for a
EUROPEAN COMMISSION Brussels, XXX SEC(2011) 1227 COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT
More informationBalanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth.
Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate
More informationPRODUCT KEY FACTS Samsung KOSPI 200 Daily (2x) Leveraged Product
Issuer: Samsung Asset Management (Hong Kong) Limited 三 星 資 產 運 用 ( 香 港 ) 有 限 公 司 PRODUCT KEY FACTS Samsung KOSPI 200 Daily (2x) Leveraged Product 24 June 2016 This is a leveraged product. It is different
More informationIN THIS REVIEW, WE HAVE ARRANGED OUR BUSINESSES AROUND OUR TWO DISTINCT CUSTOMER
Review of TD s businesses REVIEW OF TD S BUSINESSES PROFILES OF TD S BUSINESSES TODAY IN THIS REVIEW, WE HAVE ARRANGED OUR BUSINESSES AROUND OUR TWO DISTINCT CUSTOMER BASES RETAIL AND WHOLESALE TO SHOW
More informationDevelopment of consumer credit in China
Development of consumer credit in China Shen Bingxi and Yan Lijuan 1 Summary Consumer credit particularly personal consumer loans such as home mortgages and loans financing purchases of automobiles and
More informationABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong
Important Risk Disclosure for PAIF: ABF Pan Asia Bond Index Fund ( PAIF ) is an exchange traded bond fund which seeks to provide investment returns that corresponds closely to the total return of the Markit
More informationQuotePower International Limited
QuotePower International Limited Transaction Services QuotePower-Trade The Global Electronic Trading Solution for the Next Generation E-Brokerage Getting Started with On-line Trading Electronic trading
More informationA Note from the Editor
Understanding Investors in the Hong Kong Listed Securities and Derivatives Markets Essie Tsoi, Research & Planning Department, Hong Kong Exchanges and Clearing Limited 1 July 004 A Note from the Editor
More informationSpeech Speech by SFST at Hong Kong Investment Funds Association 9th Annual Conference (English only) Friday, October 30, 2015
Speech Speech by SFST at Hong Kong Investment Funds Association 9th Annual Conference (English only) Friday, October 30, 2015 Following is the speech by the Secretary for Financial Services and the Treasury,
More informationCollective Investment Schemes in Asia: The Current Situation 1
Collective Investment Schemes in Asia: The Current Situation 1 Yuta Seki 1. Introduction In Asian countries, collective investment schemes (CISs) may be called different names such as mutual funds, unit
More informationAPPENDIX: RISK DISCLOSURES AND OTHER INFORMATION OF SHANGHAI-HONG KONG STOCK CONNECT
APPENDIX: RISK DISCLOSURES AND OTHER INFORMATION OF SHANGHAI-HONG KONG STOCK CONNECT This Appendix describes some of the key risk factors concerning Stock Connect based on the Company s current understanding
More informationBusiness Review ETD ANNUAL REPORT 2003 TRAVELSKY TECHNOLOGY LIMITED
7 The Company is the dominant provider of information technology solutions for China s air travel and tourism industries. The Company is also the dominant provider of inventory management solutions for
More informationHAIER ELECTRONICS GROUP CO., LTD (STOCK CODE: 1169)
To: Business Editor [For immediate release] HAIER ELECTRONICS GROUP CO., LTD (STOCK CODE: 1169) ANNOUNCES INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2012 TURNOVER UP 8.4% TO RMB 26,303,993,000 PROFIT
More informationReview of Operations (Financial figures are expressed in Hong Kong dollars)
(Financial figures are expressed in Hong Kong dollars) Results for the Six Months Ended 30 June 2002 Hong Kong Exchanges and Clearing Limited (HKEx) reported unaudited net profits for the six months ended
More informationForeign Exchange Forward Transactions for the nabtrade Global Market Trading service Product Disclosure Statement
Foreign Exchange Forward Transactions for the nabtrade Global Market Trading service Product Disclosure Statement Issued by National Australia Bank Limited (NAB) ABN 12 004 044 937, AFSL 230686 Effective
More informationTaiwan Life Insurance Market Report for First Half of 2013
Taiwan Life Insurance Market Report for First Half of 2013 I. Life Insurance Financial and Business Overview A. Business Statistics and Overview In the first half of 2013, Taiwan life insurance companies
More informationCayman Islands Companies: The Asia Connection
BERMUDA BRITISH VIRGIN ISLANDS CAYMAN ISLANDS CYPRUS DUBAI HONG KONG LONDON MAURITIUS MOSCOW SÃO PAULO SINGAPORE conyersdill.com December 2010 Cayman Islands Companies: The Asia Connection The Cayman Islands
More informationSSE Newsletter. September 2013. Vol. 9. Highlights:
Vol. 9 SSE Newsletter September 2013 Highlights: SSE Composite and trading volume of September 2013 show slight increase compared with that of the previous month. CSRC issued policies to boost FTZ(Free
More informationChina s Unwinding Stock Market Bubble
China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities
More information2014 Amendment of Financial Instruments and Exchange Act, etc. (Act No.44 of 2014)
2014 Amendment of Financial Instruments and Exchange Act, etc. (Act No.44 of 2014) [Briefing Materials] May 2014 Financial Services Agency, Japan Table of Contents I. Outline of 2014 Amendment of Financial
More informationLife Persistency Study
Life Persistency Study Korea Full Report Kyong Hee Yang Korea Insurance Development Institute khyang@kidi.or.kr Ingrid R. Goodenow, FLMI International Research 860.285.7835 igoodenow@limra.com A 2010
More informationKERFORD INVESTMENTS (UK) LTD Authorised and Regulated by the Financial Conduct Authority (FCA)
KERFORD INVESTMENTS (UK) LTD. Authorised and Regulated by the Financial Conduct Authority (FCA) Registered Office: 43-45 Dorset Street, London W1U 7NA Administration Office: 14 Basil Street, London SW3
More information1H FY2002 Earnings Review
Shaper of Korean Financial Services Industry Daewoo Securities Co., Ltd. (KS:06800) IR Team irteam@bestez.com Hong-Wook Kim, Manager +82-2-768-3917 wookie@bestez.com Haejin Chang +82-2-768-3918 haejin77@bestez.com
More informationDo Diversified Growth Funds solve the diversification problem?
Aon Hewitt Retirement and Investment Do Diversified Growth Funds solve the diversification problem? Risk. Reinsurance. Human Resources. Do Diversified Growth Funds solve the diversification problem? Diversified
More informationtrack, or replicate, the performance of an underlying index. Futures-based ETFs, on the other hand, invest in
Commodity Futures ETFs 1. Characteristics of Futures-based ETFs i. Definition Traditional ETFs represent baskets of securities that track, or replicate, the performance of an underlying index. Futures-based
More informationDeregulation and Liberalization in Japanese General Insurance Market
Deregulation and Liberalization in Japanese General Insurance Market 29 th October 2004 Takeshi Oiwa SOMPO JAPAN INSURANCE INC. INDEX 1. Features of Japanese General Insurance Market. P.1-4 2. Development
More informationFurther Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges
Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,
More informationA Perspective on Mutual Fund Redemption Activity and Systemic Risk
A Perspective on Mutual Fund Redemption Activity and Systemic Risk NOVEMBER 1, 2013 Strategic Insight an Asset International Company 805 Third Avenue, New York, NY 10022 Tel: (212) 944-4455, Fax: (212)
More informationTHE OPERATIONS OF A TYPICAL STOCKBROKER AND AN ISSUING HOUSE
THE OPERATIONS OF A TYPICAL STOCKBROKER AND AN ISSUING HOUSE A PAPER PRESENTED BY MR. AZU ODITA GENERAL MANAGER/CEO, NETWORTH SECURITIES & FINANCE LIMITED (A MEMBER OF THE NIGERIAN STOCK EXCHANGE) LAGOS,
More informationFirst Half 2015 Taiwan Life Insurance Market Overview
First Half 2015 Taiwan Life Insurance Market Overview 一. Life Insurance Business and Financial Overview ( 一 ) Business Statistics The life insurance industry in Taiwan delivered NTD1,410.3 billion in premium
More informationHow Securities Are Traded
How Securities Are Traded Chapter 3 Primary vs. Secondary Security Sales Primary new issue issuer receives the proceeds from the sale first-time issue: IPO = issuer sells stock for the first time seasoned
More informationTaiwan Life Insurance Report 2011
一 Business Overview of the Industry ( 一 )Business Overview Taiwan Life Insurance Report 2011 The Taiwan life insurance sector reported TWD 2,198.2 billion in premium income in 2011, down by 4.96% when
More informationINDUSTRY OVERVIEW THE HONG KONG SECURITIES MARKET. History
Certain information provided in this section is derived from various public official or government sources. The Company and the Sponsor have exercised reasonable care in reproducing such information from
More informationRecent Trends in Superannuation Fund Assets
Recent Trends in Superannuation Fund Assets The assets of superannuation funds have increased rapidly in the 99s. Along with managed funds more generally, this growth has been considerably faster than
More informationThe ALSOK Group is developing services that accurately respond to social needs with the aim of contributing to the safety and security of society.
The ALSOK Group is developing services that accurately respond to social needs with the aim of contributing to the safety and security of society. SOHGO SECURITY SERVICES CO., LTD. (ALSOK), was established
More informationGREAT-WEST CAPITAL MANAGEMENT, LLC (GWCM) RESEARCH NOTE JUNE 2015
GREAT-WEST CAPITAL MANAGEMENT, LLC (GWCM) RESEARCH NOTE JUNE 2015 An Inflection Point for Money Market Funds? New regulations related to money market funds will have significant impacts to plan sponsors
More informationNATIONAL FINANCIAL SERVICES LLC
NATIONAL FINANCIAL SERVICES LLC A GUIDE TO YOUR BROKERAGE ACCOUNT As part of our effort to provide you with quality service, our broker/dealer has an agreement with National Financial Services LLC in which
More information[Investment Company Act Release No. 29332; 812-13752] Korea Finance Corporation; Notice of Application
SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 29332; 812-13752] Korea Finance Corporation; Notice of Application June 25, 2010 Agency: Securities and Exchange Commission (the Commission
More informationMETRO GROUP increases sales 2012 in a challenging consumer environment
METRO GROUP increases sales in a challenging consumer environment Sales rose by 1.2% to 66.7 billion (adjusted for portfolio measures: +2.3%); EBIT before special items reached around 2.0 billion Operating
More informationVoorburg Group on Service Statistics. Measuring E-Commerce in Korea
Voorburg Group on Service Statistics 15th Meeting Madrid, Spain 18-22 September 2000 Measuring E-Commerce in Korea Junghoi Koo Korea National Statistical Office The views expressed herein are those of
More information1-Tehran Stock Exchange
Introduction Tehran Stock Exchange was established in 1968, and has been the primary equities market in Iran. In 2005, the new Capital Market Law of Iran approved by parliament and in 2006, according to
More informationEconomic Commentaries
n Economic Commentaries Sweden has had a substantial surplus on its current account, and thereby also a corresponding financial surplus, for a long time. Nevertheless, Sweden's international wealth has
More informationTrends in Insurance Channels
Insurance the way we see it Trends in Insurance Channels Key emerging business and technology trends across channels to better reach your insurance customers and improve operational performance Contents
More informationGLOBAL NETWORK CORPORATE CASH INVESTMENT STUDY 2013
GLOBAL NETWORK CORPORATE CASH INVESTMENT STUDY 2013 CONTENTS 1 Introduction 2 Executive summary 4 Respondent profile 5 Treasury centralization 6 Approach to cash investment 6 Surplus cash balances 7 Cash
More informationRunning to Stand Still
July 2009 : Running to Stand Still Author(s): Sandeep Hebbar shebbar@omadvisory.com Contact: Om Advisory, 189, Block 19, Jeevan Mitra, JP Nagar, Phase 1, Bangalore - 560078 support@omadvisory.com Ph: +91-80-26655461
More informationFOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574
FOREIGN EXCHANGE PRODUCT DISCLOSURE STATEMENT INTERACTIVE BROKERS LLC ARBN 091 191 141 AFSL 245 574 Date of Issue: 19 February 2014 INDEX 1. GENERAL INTRODUCTION 4 1.1 Important Information 4 1.2 Purpose
More informationFinancial Results of the Daiwa Bank (Non-Consolidated)
Our Stockholders To Our Stockholders The Daiwa Bank, Limited Annual Report 2000 The Japanese financial services industry is reaching the final stages of its Big Bang as the implementation of limitations
More informationInvestors Choice how the plan works
Investors Choice how the plan works How do I get started and enroll? 1. To invest online, log on to www.investpower.com and choose the Paychex logo on the sidebar. Then select Invest Now and follow the
More informationPROPOSAL FORM: STOCKBROKERS INSURANCE IMPORTANT NOTICE PLEASE READ THE FOLLOWING ADVICE BEFORE COMPLETING THIS PROPOSAL FORM
PROPOSAL FORM: STOCKBROKERS INSURANCE IMPORTANT NOTICE PLEASE READ THE FOLLOWING ADVICE BEFORE COMPLETING THIS PROPOSAL FORM Your Professional Indemnity Insurance Policy is issued on a CLAIMS MADE basis.
More informationChapter 3. How Securities are Traded
Chapter 3 How Securities are Traded Primary vs. Secondary Security Sales Primary: When firms need to raise capital, they may choose to sell (or float) new securities. These new issues typically are marketed
More informationThe Buying and selling of products or services over electronic systems called computer or network
Definition of e-commerce The Buying and selling of products or services over electronic systems called computer or network Source: Statistics Korea 1992 1996 1999 2013 -Commerce transaction(b2b, B2G) reached
More informationHong Kong Exchange Fortunes: After-hours Futures
Press release LCQ4: After-hours futures trading Wednesday, May 23, 2012 Following is a question by the Hon Wong Kwok-hing and a reply by the Secretary for Financial Services and the Treasury, Professor
More informationCHINA LIFE INSURANCE COMPANY LIMITED ANNOUNCES 2012 ANNUAL RESULTS (H SHARE)
Press Release For Immediate Release CHINA LIFE INSURANCE COMPANY LIMITED ANNOUNCES 2012 ANNUAL RESULTS (H SHARE) HONG KONG, 27 March 2013 China Life Insurance Company Limited (SSE: 601628, SEHK: 2628,
More informationCase of Korea s National Paperless Trade Platform utradehub
Case of Korea s National Paperless Trade Platform utradehub A number of countries in the Asia-Pacific region are in the process of establishing national Single Window (SW) facilities. A Single Window would
More informationSpecial Section: Profile of Mutual Funds
Special Section: Profile of Mutual Funds In an environment where investors and savers lament the lack of investment options, financial savings in the economy do not show an encouraging growth pattern,
More informationMeasures for Shanghai-Hong Kong Stock Connect Pilot Program by the Shanghai Stock Exchange
Measures for Shanghai-Hong Kong Stock Connect Pilot Program by the Shanghai Stock Exchange Disclaimer: The Chinese version of the rules issued by the Shanghai Stock Exchange shall prevail, while the English
More informationOperational Guidelines for Account Conversion Investors Related to the Stock-for-stock Merger of China Merchants Property Development Co., Ltd.
Operational Guidelines for Account Conversion Investors Related to the Stock-for-stock Merger of China Merchants Property Development Co., Ltd. by China Merchants Shekou Industrial Zone Holdings Co., Ltd.
More informationIndustry Research Alcoholic Beverage Producers
Alcoholic Beverage Producers Industry Outlook: Stable Tax Hike and Weaker Economy Reduce Consumption of Alcoholic Beverages Executive Summary 19 September 2013 Ruangwud Jarurungsipong ruangwud@trisrating.com
More information1 Regional Bank Regional banks specialize in consumer and commercial products within one region of a country, such as a state or within a group of states. A regional bank is smaller than a bank that operates
More informationAddendum: Stockbroker
Addendum: Stockbroker Important Notice Relating to this Addendum Your Professional Indemnity Insurance Policy is issued on a CLAIMS MADE basis. This means that this policy responds to: (1) Claims first
More informationRating Research Services
Rating Research Services Media Release: Ratings On Taiwan Mobile Co. Ltd. Affirmed On Sustainable Market Position; Outlook Stable Primary Credit Analyst: Anne Kuo, CFA; (886) 2 8722-5829; anne.kuo@taiwanratings.com.tw
More informationWhy ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group
Atul Lele alele@deltecinv.com +1 242 302 4135 David Munoz dmunoz@deltecinv.com +1 242 302 4106 David Frazer dfrazer@deltecinv.com +1 242 302 4156 Why ECB QE is Negative for Commodities Recent ECB Quantitative
More informationChina Merchants Bank Co., Ltd. 2013 Annual Results Announcement
China Merchants Bank Co., Ltd. 2013 Annual Results Announcement Forward-Looking Statement Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks
More informationNew Short Sale Regulations
New Short Sale Regulations Motomi Hashimoto In view of the fact that depressing the market through short sale can lead to sharp drop in their stock prices of financial institutions, etc. on the stock market,
More informationLife In China. Life in China. 2004 Life Convention 7-9 November, EICC Edinburgh Scotland
2004 Life Convention 7-9 November, EICC Edinburgh Scotland Life In China Sandy Reid Chief Actuary, Heng An Standard Life Development of China s Life insurance market Development of China s Life insurance
More informationHLeBroking FAQ. There are also additional benefits only for HLeBroking via Internet, such as:
Q1. What is HLeBroking? A1. HLeBroking allows you the flexibility of placing your orders (buying & selling of shares) either through a phone call to our trading hub or via the Internet. Our professional
More informationRISK DISCLOSURE STATEMENT
RISK DISCLOSURE STATEMENT You should note that there are significant risks inherent in investing in certain financial instruments and in certain markets. Investment in derivatives, futures, options and
More informationNational Financial Services LLC. A guide to your brokerage account
National Financial Services LLC A guide to your brokerage account Quality service for your account As part of our effort to provide you with quality service, our broker-dealer has an agreement with National
More informationLIFE INSURANCE INDUSTRY IN CHINA
Unless otherwise indicated, the financial and market share information set forth in this section is based on information reported by companies to the CIRC. The reported information includes premium and
More informationDecision of the Board of Directors of the Investment Industry Regulatory Organization of Canada
Decision of the Board of Directors of the Investment Industry Regulatory Organization of Canada IN THE MATTER OF BMO InvestorLine Inc. Application concerning the proposed offering of advicedirect (the
More informationMin-Kyu Song. Vol. 21, No. 25 (23 Jun 2012) SUMMARY
Vol. 21, No. 25 (23 Jun 2012) Investment Advisory Business in Korea* Min-Kyu Song SUMMARY Since investment advisory business provides specialized advice and its actual software to asset management, its
More information