Doing International Business Online for the Small and Medium Enterprise

This chapter is designed to address the primary difficulties small and medium enterprises face when doing business online with international partners. The guidance provided in this chapter is primarily for at owners of small and medium enterprises rather than legal professionals. The two main problems inhibiting online transactions are a lack of trust between the parties and the risk inherent in the transaction. This chapter analyzes ways to address these problems. Many of the practical suggestions in this chapter are inspired not by million dollar deals but by playground transactions between children. Often the simple solutions are the best ones.

The Holding and Transfer of Interests in Securities in England and Japan

This chapter compares account-based securities settlement systems with payment systems in which funds are transferred through bank accounts in England and Japan and examines a desirable securities system to harmonize the relevant countries’ jurisprudence considering US securities system and relevant international trends. It argues that there should be two broad areas of similarity in both systems; compartmentalization of a legal relationship between related parties and the method of transfer of securities and funds. It also argues, however, that, due to the differences in the legal nature of both financial assets, there are some differences between both systems in order to response intermediary risk. The purpose of this chapter is not only to propose that similar legal issues in both systems should be resolved in same ways as much as possible, but also to distinguish issues which could be resolved in commercial law from issues which should be resolved in the field of regulations by financial authorities in securities system.

Cross-Border Court Jurisdiction and Economic Law Application in Electronic Commerce

The purpose of this chapter is to examine international jurisdiction and choice of law for e-commerce involving economic legal issues. International jurisdiction and choice of law will be determined under private legal principles, but as e-commerce involves economic law as a law to ensure national economic stability, the court may consider economic law with both private and public legal functions. At that time there may be some conflict of law involving state economic policy, and it must be considered how to coordinate the conflict and create a universal legal structure for non-territorial cyberspace. This chapter will propose three layers of legal structure for e-commerce: the private law layer, the economic law layer, and the criminal law layer, all of which have perspectives for borderless cyberspace.

E-Commerce and Dispute Resolution

When a dispute arises from e-commerce involving parties located in different nations, the parties immediately face conflict-of-laws issues such as judicial jurisdiction, applicable law and extra-territorial effects of judgments. Taking into consideration that there is no unified conflicts law rules in the global level and, if any, the conflicts rules are usually based on the traditional international transactions, this paper tries to discuss the dispute resolution systems suitable for e-commerce, especially for computer information transactions. As the result of the discussion, it becomes clear that further enhancement of worldwide dispute resolution system suitable for e-commerce is desirable. In establishing a new system, the 1999 Guidelines for Consumer Protection in the Context of Electronic Commerce approved by OECD gives us much inspiration. It is essential to balance between small-middle sized business entities and consumers and between freedom and regulation.

Global Trends of Payment Systems and the Next-Generation RTGS Project in Japan

This chapter investigates the evolutionary process of the payment system against the background of structural changes. At the early stage, most payment systems were Designated-Time Net Settlement (DTNS) systems. Then, Real-Time Gross Settlement (RTGS) systems were introduced, which had the merit of reducing settlement risks. This first trend was followed by the deployment of Hybrid systems and Integrated systems. The Bank of Japan (BOJ) is proceeding with the Next-Generation RTGS (RTGS-XG) project. This project is regarded as a typical enhancement of payment systems following the global trend. The features and benefits of the RTGS-XG are closely analyzed.

Laws and Regulations on Proprietary Trading System (PTS) in Japan

In order to improve convenience for investors through competition among stock exchanges, operation of Proprietary Trading Systems (PTS) was authorized as a form of securities business under the Securities and Exchange Act. The Japanese PTS is equivalent to ATS (Alternative Trading System) ECNs (Electronic Communications Network) in the United States and MTF (Multilateral Trading Facilities) under MiFID in the EU. In 1998, ATS ECNs had already started in the United States and Japan’s PTS followed the US model. Telecommunication and information technologies and computer technologies made PTS possible, and PTS make the border between the market and brokers ambiguous. Traditional regulations on broker-dealers and stock exchanges will inevitably be reviewed and regulations on securities markets will have to be reformed.

Commodity Based Digital Currency

Financial innovations bring new challenges and new risks besides advantages to the world of finance in cyberspace and in the real world. These innovations evolve alongside the development of cyberspace creating more e-business opportunities. One such innovation is digital currency. As cyberspace develops, this financial innovation allows more and more players into a formerly closed market of providing a medium of intrinsic purchasing power which was generally supplied by a nation’s central bank in the form of money. What, then, is the legal status of this digital currency in a nation?