Methodological Approaches to Assessing of the Regional Stock Market Development

The paper shows the influence of activity of regional corporations at stock market on the development of regional economy in general. Various scientific approaches to the assessment of the influence of financial markets on overall economic situation were considered in the course of the research. The need for detailed study of functioning of regional securities markets, as well as detailed study of their peculiarities and courses of development was revealed. The methods of analysis of regional results of activities of legal entities at securities market were developed on the basis of tax reporting of issuers and assessment of investment attractiveness of regions. The following tasks were solved: study of the normative base regarding dealings of legal entities at stock market, analysis of investment attractiveness of regions, analysis of indicators of statistical tax reporting, development of the methods of assessment of business activity of organizations at stock market, carrying out the assessment of correlation dependence of the indicators of investment attractiveness of regions and statistical tax reporting with gross regional product of the Siberian Federal District entities. Following the assessment results a conclusion of the dependence of economic development of the region with its investment potential and dynamics of corporate investment activity in the respective territory was drawn. Tax incentive of investment activity of regional companies was marked as significant direction of state policy at securities market.

Islamic securities (Sukuk) and economic growth: New empirical investigation from Southeast Asia using non-parametric analysis of MCMC panel quantile regression

PurposeThis paper aims to investigate empirically whether Islamic securities enhance economic growth in the Southeast Asian region based on the endogenous growth theory using the non-parametric analysis.Design/methodology/approachThis paper applies panel quantile regression with Markov chain Monte Carlo optimization as an optimal non-parametric approach to investigate the effect of Islamic securities on economic growth starting from 2013Q4 to 2019Q4 in Southeast Asia. Total issued Islamic securities holdings are employed as a measure for Islamic securities, while the gross domestic product is employed as a proxy for economic growth. The sample includes all working Islamic financial foundations in the top progressive Islamic securities markets' countries of Southeast Asia (Malaysia, Indonesia and Brunei Darussalam).FindingsThe findings confirm that the increase of issuing Islamic securities in Islamic capital markets of Southeast Asia is increasing the levels of economic growth, reflecting the weighty role of the Islamic capital market development as an active contributor to economic growth.Practical implicationsThis research would fill the literature gap by exploring Islamic securities–economic growth nexus in Southeast Asia using a robust non-parametric approach based on the endogenous growth theory for better estimation results. The findings of this review serve as a roadmap for financial analysts, policymakers and decision makers to stimulate the Islamic securities markets as another source of finance which can promote the economic growth.Originality/valueThis research is the first that investigates empirically the Islamic securities–economic growth nexus in Southeast Asia using a new empirical investigation built on the non-parametric analysis and outlined within the theoretical context of the endogenous growth model to gain robust evidence about this nexus.

Regulation of prediction markets under the Financial Markets Conduct Act 2013

<p>The Financial Markets Conduct Act 2013 (FMC Act) represents the most substantial overhaul of New Zealand’s securities law in recent history. The regulation of derivatives in particular featured high on the agenda as an area in need of reform and, as a result, the FMC Act is much clearer than the Securities Markets Act 1988 with respect to typical derivative agreements. The focus of this paper, however, is on the atypical: the use of derivatives in prediction markets. With a study of New Zealand-based prediction market iPredict, this paper examines whether iPredict will be regulated under the FMC Act and, if so, how it will be regulated. The conclusion reached is that iPredict can operate under the FMC Act only if the Financial Markets Authority (FMA) declares that its contracts are derivatives and grants substantial exemptions from regulatory compliance. This paper then makes recommendations for a more coherent approach to the regulation of prediction markets under the FMC Act.</p>

Regulation of prediction markets under the Financial Markets Conduct Act 2013

<p>The Financial Markets Conduct Act 2013 (FMC Act) represents the most substantial overhaul of New Zealand’s securities law in recent history. The regulation of derivatives in particular featured high on the agenda as an area in need of reform and, as a result, the FMC Act is much clearer than the Securities Markets Act 1988 with respect to typical derivative agreements. The focus of this paper, however, is on the atypical: the use of derivatives in prediction markets. With a study of New Zealand-based prediction market iPredict, this paper examines whether iPredict will be regulated under the FMC Act and, if so, how it will be regulated. The conclusion reached is that iPredict can operate under the FMC Act only if the Financial Markets Authority (FMA) declares that its contracts are derivatives and grants substantial exemptions from regulatory compliance. This paper then makes recommendations for a more coherent approach to the regulation of prediction markets under the FMC Act.</p>

Exemptions from Securities Act Registration

This chapter addresses the convoluted SEC exemption framework and offers measures for effective reform. During the past four decades, Congress and the SEC have engaged in piecemeal alterations to the exemption framework. As a consequence, the exemption framework lacks clarity and unduly favors capital formation at the expense of investor protection. The chapter accordingly focuses on the exemption framework for both primary offerings and resales of securities. Its objectives are to explain why the current regimen is incompatible with the best interests of investors and the securities markets as well as to recommend the implementation of a revised framework that effectuates a more sound exemption framework. Hence, as set forth herein, the SEC’s exemption framework should be restructured so that the exemptions are tailored in a balanced manner that satisfies both issuer and investor needs.

Private Securities Litigation

This chapter focuses on the erratic and unacceptable private securities litigation framework that prevails in the United States. The litigation structure contained in the federal securities acts was based on a different era and is not suitable for today’s securities markets. Although federal legislation has been enacted to address perceived shortcomings on an episodic basis, significant gaps and inconsistencies exist. Likewise, the federal courts, faced with a fractured statutory regimen, frequently have construed the remedial provisions in a wooden and unduly restrictive manner. The consequence of these congressional and judicial actions is a disparate liability framework that lacks sound logic, consistency, and even-handed treatment for plaintiffs and defendants alike. This chapter provides several examples of the inconsistencies and disparate treatment that prevail under the federal securities laws. Thereafter, recommendations for corrective measures are proffered. These proposals, if adopted and effectively implemented, should instill a substantially greater degree of certainty, uniformity, and equity than currently exists.

Insider Trading

This chapter addresses regulation of insider trading in the United States. Uncertainties and inconsistencies prevail in this setting resulting in disparate treatment for similarly situated actors. Other developed countries, while applying many principles of U.S. securities law to their securities markets, have rejected the U.S. approach in the insider trading context. To redress this situation, Congress should enact comprehensive legislation that meaningfully addresses the contours of the insider trading prohibition. Among other mandates, this legislation would: require corporate insiders to provide advance notice of their contemplated transactions in the subject company’s equity securities; bar corporate insiders and other access persons from trading in the subject company’s securities during the interval between the occurrence of a reportable event and the making of a SEC filing (such as a Form 8-K); close loopholes that currently exist with respect to the propriety of insider trading plans; and adopt a comprehensive access approach governing the legality of trading and tipping on the basis of material nonpublic information.

The Disclosure Regimen of the Federal Securities Laws

This chapter focuses on the disclosure framework of the federal securities laws. It explores the benefits as well as drawbacks of the current regimen and recommends measures that should be implemented to enhance its efficacy. Subjects addressed in this chapter include the focus of the securities laws on adequate disclosure rather than substantive fairness, the concept of materiality, the mandatory disclosure framework, the integrated disclosure system, the SEC’s dismantling of the mandatory disclosure framework in certain contexts, and the disclosure obligations placed upon publicly-held companies by the national securities exchanges. Upon analysis, significant gaps and drawbacks exist in this framework that should be remedied. The chapter thereupon proffers adaptable solutions that should meaningfully improve the disclosure regimen. Implementing these measures, including the requirement that companies (absent a meritorious business justification) promptly and adequately disclose all material information to the securities markets and investors, should enhance both market efficiency and investor protection.

Influence of Renminbi Internationalization on China’s Monetary Policy Effects: A Theoretical Analysis

For more than a decade, the People&rsquo;s Republic of China has sought to expand the degree of internationalization of its official currency. In recent decades, China has become the world&rsquo;s second largest economy, as well as the world&rsquo;s largest trading nation, and its securities markets are among the largest in the world. Today, the RMB is among the top five as a world payments currency. One of the significant costs of achieving higher degrees of internationalization of a country&rsquo;s currency is the complicating impact it has on the efficacy and effect of that country&rsquo;s domestic monetary policy.&nbsp; However, what is the nature and extent of that complicating impact? This paper employs an IS-LM model of an open economy as an analytical framework, embeds an RMB internationalization factor into that model. Specifically, with this model we examine the impact of RMB internationalization on the effects of China&rsquo;s monetary policy.&nbsp;