The Female Prototype: Formal Analysis of Wangechi Mutu’s

The Female Prototype: Formal Analysis of Wangechi Mutu’s Tiny Split Character As you walk up the cold, concrete steps, it looms above you, intimidating and inviting all at the same time. A wall of windows gives you an intimate peek before entering, without showing too much, heightening the anticipation. A pair of small, rotating doors, portal you into another world. The Museum of Contemporary Art’s interior is vast and simplistic, leaving a sense that the building itself is detached from the wonder it holds within its walls.Winding up the stairs and through the showrooms, the pieces almost come to life against the stark white walls. Moving through Seeing Is a Kind of Thinking: A Jim Nutt Companion, each section displays a theme more controversial, and complex then the next. Wangechi Mutu’s Tiny Split Character, is modest, even beautiful, among the many grotesque images surrounding it. Dark, deformed bodies, riddled with sexual innuendo, sometimes subtle, more oft en blunt, line the walls. Although Tiny Split Character, portrays the same thing, it does so gracefully, as opposed to its counterparts.Tiny Split Character depicts the figure of a woman, distorted, in an awkward, yet seductive pose. Off to her left, a tiny figure of a woman, who is distorted as well, is suspended in mid air, head bent back, leg extended. The face of the smaller woman has a masculine feel, with an eerily large smile slapped across it. Her pose and facial expression gives the sense of freedom, an almost carefree demeanor. Armless, breasts exposed, and stiletto heels complete this misshapen representation of female sexuality. The larger woman looks at the smaller one with big, beautiful, eyes almost longingly.Perhaps the tiny woman is a representation of what, and who, the larger woman wants to be. Maybe even who she use to be, before she became a victim to the exploitation and misrepresentation of woman in society. Luscious lips are the only other human characteristi c enhancing her face. The larger woman is contrived with more oddities then her ideological interpretation. Gears and mechanical parts comprise her shoulders and part of her chest, showing the machine she has become, but also showing strength, and her indestructible nature.Flowers adorn her, softening her machinery and warped body while showing a soft, feminine side, without subjugating it. A tattered, purple garment is the only thing covering her lower half, purple being the color of royalty. Her body is nearly completely covered in holes. Maybe her facade is fading, or maybe she is literally falling apart, finally dissolving under the constant pressure and scrutiny. Her trunk is composed of a sickening green color, possibly representing the sickness at her core. A disease that is consuming her and other women alike.Wangechi Mutu has said that, â€Å"Females carry the marks, language and nuances of their culture more than the male. Anything that is desired or despised is always pl aced on the female body,† (Kerr par. 4). A red streak washes over her side, cascading from her waist, down her hip, and on to her thigh, accentuating her curves, and again playing up her sexuality. The finishing touch, manicured hands and stiletto heels. All this against a simple white background, darkness encroaching the top center and corners. Wangechi Mutu uses, â€Å"magazine images of women and makes them almost monstrous.Her figures boast transplanted eyes that seem too large, too small, too far apart or too close together to be human,† (Croal par. 1). Tiny Split Character is an abstract piece of art, representing the female form. She selected certain aspects she saw and either exaggerated or highlighted them to get her message across. Politi examines how her creative process begins â€Å"with accidental splattering† that eventually â€Å"build up layers of materials† (par. 3). The artist chooses to use sheets of cut Mylar, â€Å"a non-absorptive sy nthetic material† (Roach par. ) on which she is able to manipulate ink and acrylic paint into splotches and colliding pools. Mutu sorts through mass-produced images of women and cuts â€Å"them into fragments; eyes, lips, manicured nails, and stiletto-clad feet† (Roach par. 3) before she begins assembling her creations. Her cyborgs are finally able to come to life when she arranges them on the walls and floors of her studio. These painted forms usually depict the bodies, or body parts, of her abstract figures. After the bodies have been assembled Mutu accentuates this image with various elements such as â€Å"jewels and lush paint colors† (Macsweeney par. ). Mutu’s use of unlikely elements gives the women in the image the effect of a glamorous, yet barbaric centerfold. In fact, Mutu’s â€Å"gruesome gods and goddesses are born out of [her] chaotic process† (Politi par. 2). The black shading along the top of the picture almost gives the illusi on of the women as a light source, as her grisly forms seem to be almost glowing against the darkness. This highlighting the stereotypes and criticism a woman must endure on a day to day basis. The artist’s inconsistent layering patterns further stress the conflicting factors of the so-called perfect body.The use of a collage allows Mutu to intrigue the audience physically and conceptually by using layered depth within her artwork. She attempts â€Å"to trap her viewers with layers of visual metaphors that forc[e] them to question assumptions about race, gender, geography, history and beauty† (Croal par. 1). As an artist, she strives to break down the barriers that are meant to stifle the progress of women in society. Mutu’s obscure characters are composed of numerous elements that represent, overrule, and reconfigure â€Å"each potential weakness† that relate to the expected â€Å"role of women† (Murnik par. ). The artist decides to depict women i n this manner in hopes of integrating strength and revision into her pieces of art so that the previous perception of women is no longer quintessential. Tiny Split Characters’ accent colors tie into the overall color scheme. Mutu’s visual elements which are mainly that of earth tones and complementary colors, as she uses yellow, purple, red, and green at different intensities. At the same time it can be considered somewhat analagous as the colors range from red-orange, to orange, to yellow-orange.The same goes for her use ranging from green to purple. Her use of color gives the overall tone of a simple yet enchanting creature. Something that is both natural and manmade. This idea is supported by her insertion of gears and other machinery in the picture. It represents the contradiction and dualistic nature of women. On one hand there is our natural self. On the other there is what society says we should be and what society says we should look like. Women are torn, betwe en who they really are, and who they are pressured to become.Perhaps there is a way that the woman portrayed in Tiny Split Character can balance the two. What Mutu is trying to show is that there is a way, by expanding societies’ definition of beauty, so women can stay as pure and organic as they chose to be. In addition to color, Mutu uses texture through layering and collage in Tiny Split Character to create visual interest and depth. Pattern can be seen as well with the repetitive holes engrossing the larger woman’s body. Mutu uses the principle of asymmetrical balance to dramatize the opposition between who the woman has become and who the woman use to be.However, despite the symmetry imbalance, they both seem to come together to make another separate whole. Insinuating a oneness between the two, that possibly the woman she was has never left, she has simply taken a back seat to the woman she is now. The blank background creates a lack of depth so that our sole foc us is on the interpretation of the women in front of us. The hierarchal scale between the larger and smaller woman leads us to believe the smaller woman is a separate entity. One will naturally originally wonder who the smaller woman is in relation to the larger woman.Her size suggests that she is of less importance then the larger woman. Perhaps she is her conscience, maybe even the representation of her basic, animalistic, desires that are taunting her to do the wrong thing. Upon further analysis of the picture, and taking account the title, Tiny Split Character, it is then that we realize that she is, in fact, a part of the larger woman. She is smaller because society has constantly belittled who she originally was, who she actually yearns to be. Media tells her that her former self is not as important as the public image she is trying to maintain.Despite her downplay, without the smaller woman, the larger woman would not be whole. In conclusion, Wangechi Mutu’s Tiny Split Character, is an homage to women everywhere. It’s strikingly bizarre, and disgusting design, destroys ideals and makes a mockery of female stereotypes. The Museum of Contemporary Art has created a wonderful showcase with Seeing Is a Kind of Thinking, for it truly is. Mutu uses color, collage, balance, scale, texture, pattern, and depth that invokes wonder, amazement, and horror. Molds are broken, history and traditions evolve with Tiny Split Character.Mutu’s aligned image capitalizes on the contradictions of role expectations: western media ideal, sex goddess, and natural woman. The images also allude to the repercussions of female exploitation. The longing to be who you truly are, along with the fact that women cannot mask their true selves forever are all elements of this beautiful masterpiece that so eloquently portrays a woman’s dilemma and strife. Bibliography â€Å"Biography. † Saatachi Gallery: London Contemporary Art Gallery. 2 Mar. 2011. Croal, Ada. â€Å"The Africana QA: Artist Wangechi Mutu† Africana . 12 Feb. 2004. 8 March 2011. Fong, P. â€Å"Wangechi Mutu†. Modern Painters Vol. 20 No. 4. May 2008. 12 March 2011 Gladstone, Barbara. â€Å"Biography†. Gladstone Gallery. Unknown Date. 16 March 2011. Kerr, Merrily. â€Å"Wangechi Mutu’s Extreme Makeovers. † Art on Paper, Vol. 8, No. 6.July/ August 2004. 21 March 2011. < http://www. akrylic. com/contemporary_art_article73. htm> Macsweeney, Eve. â€Å"A Fertile Mind† Vogue. Apr. 2009: 190. Health Reference Center Academic. Web. 22 Mar. 2011. Politi, G. Wangechi Mutu [Exhibit]. Flash Art (International Edition) Vol. 41 March/April 2008. 22 March 2011. Roach, Jill. â€Å"Indepth Arts News†. Absolute Arts. 16 Dec. 2005. 14 April 2011.

Demutualization of Stock Exchanges

DEMUTUALIZATION OF STOCK EXCHANGES PROBLEMS, SOLUTIONS AND CASE STUDIES Edited by SHAMSHAD AKHTAR Director, Governance, Finance and Trade Division, East and Central Asia Department, Asian Development Bank  © Asian Development Bank 2002 All rights reserved. The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank, or its Board of Governors or the governments they represent. The Asian Development Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequences for their use.Use of the term â€Å"country† does not imply any judgment by the authors or the Asian Development Bank as to the legal or other status of any territorial entity. ISBN 971-561-475-2 Publication Stock No. 100602 Published and printed by the Asian Development Bank P Box 789, 0980 Manila, Philippines . O. CONTENTS Foreword Principal Authors Abbreviations xiii xv x xi PART I : ISSUES INVOLVED IN STOCK EXCHANGE DEMUTUALIZATION 1 Demutualization of Asian Stock Exchanges— Critical Issues and Challenges by Shamshad Akhtar 1. 1 1. 2 1. 3 1. 4 1. 5 1. 6 1. 7 1. Introduction Demutualization: Its Definition, Size and Significance Motivation and Driving Factors for Demutualization From Mutuality to Demutualization of Exchange Benefits of Demutualization of Exchanges Regulatory Oversight: Challenges and Responses for Demutualized Exchange Financial Viability of Demutualized Exchange Conclusion 3 3 4 5 8 12 19 25 29 2 2. 1 2. 2 2. 3 2. 4 2. 5 2. 6 Background Information on Demutualization by Pamela S. Hughes Introduction What Demutualization Means The Reasons to Demutualize The Models An Update Since Demutualization Conclusion 33 33 33 36 40 43 47Demutualization of Stock Exchanges—Problems, Solutions and Case Studies APPENDIX 1 : The Models 48 3 Motivations, Mechanics and Models for Exchange Demutualizations in the United States by Roberta S. Karmel 3. 1 3. 2 3. 3 3. 4 Overview Reasons for Demutualization How Demutualization is Accomplished Post-Demutualization Models 59 59 61 65 70 4 The Structure of a Demutualized Exchange— The Critical Issues by David Holthouse 4. 1 4. 2 4. 3 4. 4 4. 5 4. 6 4. 7 Introduction Ownership Corporate Governance Access Rights Risk Management Financial Management Conclusion 73 73 73 77 80 81 82 83 Demutualization of Exchanges— The Conflicts of Interest (Hong Kong) by William Pearson 5. 1 5. 2 5. 3 5. 4 5. 5 5. 6 5. 7 Structure of Exchanges Regulatory Role and Self-Regulation Public Policy Objectives of Stock Market Regulation Why Should Demutualization Require a Reassessment of SRO Functions? What Responses are Being Developed to Deal with These Problems? Conclusion Hong Kong’s Framework: Listing of HKEx and the Framework for Dealing with Conflicts of Interest 85 85 88 91 92 95 99 100 iv Contents APPENDIX : Hong Kong Exchanges and Clearing Limited: Reinforcing Hong Kon g’s Position as a Global Financial Centre—A Policy Paper 2 : Memorandum of Understanding for the Listing of HKEx on SEHK 3 : Section 13 of the Exchanges and Clearing Houses (Merger) Ordinance 4 : Chapter 38 of the Rules Governing the Listing of Securities on the Stock Exchanges of Hong Kong Limited 5 : Procedures to Deal with Conflicts of Interest 105 114 131 APPENDIX APPENDIX APPENDIX 133 138 APPENDIX 6 Demutualization of Exchanges—The Conflicts of Interest (An Australian Perspective) by David Holthouse 6. 6. 2 6. 3 6. 4 6. 5 6. 6 6. 7 6. 8 6. 9 Introduction Background to Conflicts An Exchange’s Listing Regulation of Other Listings Supervision of Intermediaries Profit Motive versus Supervisory Function Public Interest versus the Exchange’s Commercial Interest New Business Lines Conclusion 145 145 146 148 149 149 150 152 153 154 7 Demutualization of Exchanges—The Conflicts of Interest (The Australian Regulator’s Experience) by Claire Grose 7. 1 7. 2 7. 3 Introduction Self-Listing Other Conflicts 157 157 157 160 vDemutualization of Stock Exchanges—Problems, Solutions and Case Studies 8 8. 1 8. 2 8. 3 Regulation of a Demutualized Exchange (Canada) by Pamela S. Hughes Introduction Role of an Exchange Self-Regulation and Government Oversight SRO Conflicts of Interest Supervision of Listings Self-Listing Managing Conflicts of Interest Prudential Regulation Shareholders Directors and Officers Memoranda of Understanding Conclusion 163 163 165 165 169 171 171 172 172 173 175 175 176 8. 4. 8. 5 8. 6 8. 7 8. 8 8. 9 8. 10 8. 11 8. 12 9 9. 1 9. 2 9. 3 9. 4Regulation of a Demutualized Exchange (Singapore) by Lee Boon Ngiap Background Regulatory Issues Arising from Demutualization The Regulatory Relationship between the Monetary Authority of Singapore and Stock Exchange of Singapore Conclusion 177 177 178 179 183 10 Regulation of a Demutualized Derivatives Exchange (United States) by Natalie A. Markman 185 185 186 190 192 195 Introduction A New Framework Exchange Oversight Regulatory Issues Raised by Demutualization Conclusion 10. 1 10. 2 10. 3 10. 4 10. 5 vi Contents APPENDIX APPENDIX APPENDIX : Designated Contract Markets for Regulated US Derivatives Exchanges 2 : Registered Derivatives Transaction Execution Facilities 3 : The CFTC Market Surveillance Program 196 202 205 11 Regulation of Demutualized Exchanges (Australia) by Claire Grose 213 213 214 214 215 215 217 Legislative Framework Australian Securities and Investment Commission’s (ASIC) Powers Supervision by Market Operators Memoranda of Understanding (MOUs) Changes Due to Demutualization New Legislation 11. 1 11. 2 11. 3 11. 4 11. 5 11. 6 PART II: DEMUTUALIZATION CASE STUDIES 2 Australian Stock Exchange—The Conversion to a Demutualized Exchange: ASX’s Experience by David Holthouse 12. 1 12. 2 12. 3 12. 4 12. 5 12. 6 12. 7 12. 8 12. 9 Introduction Background to Australian Stock Exchange’s Demutualization Obtain ing Member Approval Mechanism Used for Conversion Changes to the Corporations Law The Demutualization Process Memorandum of Understanding (MOU) with ASIC Demutualization and Listing Outcomes Subsequent Supervisory Development: ASX Supervisory Review Pty Limited 221 221 222 223 224 225 226 228 229 230 ii Demutualization of Stock Exchanges—Problems, Solutions and Case Studies 12. 10 Changes in ASX’s Focus and Activities 12. 11 Conclusion 231 233 13 Hong Kong Exchanges and Clearing Limited— Demutualization, Merger and Listing: The Hong Kong Exchanges’ Experience by Lawrence Fok 235 235 236 238 239 242 246 Introduction Pre-Merger Period: Two Exchanges and Three Clearing Houses Merger and Proposal Reasons For the Merger Market Reform Conclusion 13. 1 13. 2 13. 3 13. 4 13. 5 13. 6 14Hong Kong Securities and Futures Commission— The Conversion to a Demutualized Exchange: The Hong Kong Regulator’s Experience by William Pearson 247 247 250 255 258 258 The Need for Reform The Reform Process Rationalized Market Regulation Implementing Legislation: Exchanges and Clearing Houses (Merger) Ordinance Key Issues Arising from Hong Kong’s Experience with Demutualization 1 : Summary of the Exchanges and Clearing Houses (Merger) Ordinance 14. 1 14. 2 14. 3 14. 4 14. 5 APPENDIX 261 15Singapore Stock Exchange—Demutualization and Listing of the Singapore Exchange Limited by Alan Shaw 265 265 Introduction 15. 1 viii Contents 15. 2 15. 3 15. 4 15. 5 15. 6 15. 7 15. 8 15. 9 Drivers for Change: The Rationale for Demutualization and Merger Impact of Demutualization The Merger Act The Process of Demutualization The Singapore Exchange’s Initial Public Offer The Structure of Singapore Exchange The Governance of Singapore Exchange Listing and Conflict of Interest 265 267 269 270 271 272 274 276 279 281 5. 10 Conclusion APPENDIX 1: Procedures to Deal with Conflicts of Interest 16 Toronto Stock Exchange—From Toronto Stock Exch ange to TSE Inc. : Toronto’s Experience with Demutualization by Timothy Baikie 283 283 283 286 291 292 296 298 298 Introduction An Overview of the Toronto Stock Exchange (TSE) The Development of Mutual Exchanges Consolidation, Globalization and New Competition The Demutualization Decision Market Regulation by a Demutualized Exchange Next Steps Conclusion 16. 1 16. 2 16. 16. 4 16. 5 16. 6 16. 7 16. 8 17 Demutualization of the Philippine Stock Exchange by Maria Larrie Alinsunurin 299 299 300 300 301 304 307 Introduction Ownership Structure of the Stock Exchange Upon Demutualization Trading Rights Corporate Governance Business of the Exchange Statutory Regulatory Role 17. 1 17. 2 17. 3 17. 4 17. 5 17. 6 ix Demutualization of Stock Exchanges—Problems, Solutions and Case Studies PART III: STRUCTURE OF MUTUAL EXCHANGES 18 The Colombo Stock Exchange (Sri Lanka) y Rajeeva Bandaranaike 18. 1 18. 2 18. 3 18. 4 18. 5 18. 6 18. 7 18. 8 18. 9 Ownership Structure Listing Data Corpor ate Governance Business of the Exchange The Vision, Mission and Corporate Strategy Trading Rights Regulatory Framework Self-Regulation Statutory Regulatory Role 313 313 314 314 315 316 317 317 317 319 320 321 321 18. 10 Investor Protection 18. 11 Funding of the Colombo Stock Exchange 18. 12 Stock Exchange Seeks to Demutualize 19 The Kuala Lumpur Stock Exchange (Malaysia) y Securities Commission (Malaysia) 323 323 323 324 324 325 326 327 329 329 Introduction Ownership Structure of the KLSE Listing Data Corporate Governance Business of the Exchange Trading Rights Risk Management and Supervisory Issues Statutory Regulatory Role Stock Exchange Seeking to Demutualize 19. 1 19. 2 19. 3 19. 4 19. 5 19. 6 19. 7 19. 8 19. 9 x Contents 20 The Shanghai and Shenzen Exchanges: Business Operation, Governance Structure, and Regulatory Function (People’s Republic of China) by Feng Wei 331 331 332 333 335 337 Overview Business Operation Governance Structure Regulatory Function Outlook on Demu tualization 0. 1 20. 2 20. 3 20. 4 20. 5 21 The Taiwan Stock Exchange (Taipei,China) by Wanpo (Mina) Wang 341 341 342 342 343 344 344 347 347 Ownership Structure of Taiwan Stock Exchange Corporation Listing Data Corporate Governance Business of the Exchange Trading Rights Risk Management Statutory Regulatory Role Stock Exchange Seeking to Demutualize 21. 1 21. 2 21. 3 21. 4 21. 5 21. 6 21. 7 21. 8 22 Current Organizational and Regulatory Structure of The Stock Exchange (Thailand) by Klao Sanasen 349 349 352 Thai Capital Market Structure The Stock Exchange of Thailand 2. 1 22. 2 xi Contents FOREWORD Demutualization of a stock exchange is entire process by which a non-profit member-owned mutual organization is transformed into a forprofit shareholder corporation. Exchanges around the world have been demutualizing because of international competition and technological challenges to traditional modes of trading securities. The change of a stock exchange from a member-owned organization to a for-profit shareholder corporation triggers a number of questions about regulatory oversight.When a demutualized exchange is listed on its own board, some regulatory oversight needs to be transferred to a government regulator. In many countries, demutualization of the major national stock exchange has been accompanied by general securities regulatory reform. This book grew out of a conference on Demutualization of Stock Exchanges held in Manila on 13-14 August 2001 organized under the APEC Financial Regulators Training Initiative sponsored by the Asian Development Bank.The conference focused on developing greater understanding of demutualization by discussing the general problems it engenders and how these might be solved, developing common themes and lessons from case studies and also seeing how different countries have evolved different approaches to demutualization. This book is divided into three parts. Part I, consisting of Chapters 1-11, discuss various dimensions and iss ues involved in the process of stock exchange demutualization.Chapters 1-3 give a broad overview of the reasons for demutualization, the critical issues and challenges, the decision-making process relating to demutualization and the possible models stock exchanges may choose, including that of a privately owned for-profit corporation and that of a publicly held company listed on the exchange’s own board. Chapter 4 sets forth the critical issues an exchange and its regulator must confront in connection with the demutualization process from the vantage point of a particular jurisdiction—Australia.Chapters 5-7 discuss the conflicts of interest raised by an exchange’s demutualization and then Chapters 8-11 set forth how regulators in Canada, Singapore, the United States and Australia attempted to deal with some of these conflicts through regulation. Part II of this book is a series of case studies. Chapters 12-17 discuss the demutualization experience in Australia, Hong Kong, Singapore, xiii Demutualization of Stock Exchanges—Problems, Solutions and Case Studies Toronto and the Philippines.Part III of this book provides information about jurisdictions that have not demutualized their exchanges. Chapters 18-22 discuss the Colombo, Kuala Lumpur, Shanghai and Shenzen, Taiwan and Thailand exchanges. Chapters 1-16 were submitted as papers by professionals who presented papers at the conference. Chapters 17-22 were submitted by participants in the conference who were not presenters. This conference was coordinated by the Finance and Industry Division (East) of ADB under the overall guidance and supervision of Ms.Shamshad Akhtar, Director, Governance, Finance and Trade, East and Central Asia Department. Special thanks are due to the various contributors as well as the organizers. The book has been edited by Ms. Akhtar. Ms. Roberta Karmel, Professor of Law at Brooklyn Law School, was engaged to integrate the conference materials and provide edi torial advice. R. Jane Lee, a student at Brooklyn Law School supported the compilation of this book. Mr. Lyle Raquipiso coordinated the publication of this book and Ms. Nancy Bustamante provided administrative support. Geert H.P van der Linden . B. Director General East and Central Asia Department Asian Development Bank xiv Contents PRINCIPAL AUTHORS SHAMSHAD AKHTAR is Director, Governance, Finance and Trade Division of the Asian Development Bank’s (ADB’s) East and Central Asia Department. She oversees ADB’s financial market operations in the People’s Republic of China, Mongolia and the Central Asian Republics, including SME, microfinance and other rural market financial intermediation; governance and private sector assessment work; and trade liberalization and facilitation.Concurrent to holding other portfolio from 1998-2001, she was head of ADB Secretariat for Asia Pacific Economic Cooperation, leading the policy dialogue and preparation of all papers/ documents for this forum, involving interactions with Finance Ministers and Central Bank Governors and their Deputies. Before joining ADB in 1990, she worked as Economist in the World Bank in the 1980’s, and prior to that, in Pakistan’s Planning Agency. She obtained a B. A. in Economics and M. Sc. in Economics from Islamabad, an M. A. n Development Economics from University of Sussex in the United Kingdom (UK), and a Ph. D. in Economics also from UK. She had her post-doctoral fellowship as a Fulbright scholar and was visiting fellow at the Department of Economics, Harvard University in 1987. Ms. Akhtar has presented numerous papers on economics and finance in international conferences. TIMOTHY BAIKIE is Director, Global Market Initiatives at the Toronto Stock Exchange and is responsible for analyzing market structure issues from a broad, strategic standpoint, including the market model for the Global Equity Market (GEM).Previously, he was Special Counsel, Market Regula tion and Director of the Regulatory and Market Policy Division of the Exchange, which is responsible for policy and rule development for the equities and derivatives market. He has spoken at numerous conferences on market regulation, market structure and corporate governance issues and was a member of the Advisory Board for the 1999 Canadian Corporate/Securities Law Moot Court Competition. He received a B. A. from York University (Glendon College), an LL. B. and a B. C. L. from McGill University and an LL. M. rom the University of Illinois at Urbana-Champaign. He was called to the Ontario Bar in 1987. LAWRENCE FOK is the Deputy Chief Operating Officer of Hong Kong Exchanges and Clearing Limited and the Chief Executive of the Stock Exchange. Mr. Fok joined the Stock Exchange in February 1992 and was xv Demutualization of Stock Exchanges—Problems, Solutions and Case Studies appointed Executive Director of the Listing Division in February 1997 and Senior Executive Director of it s Regulatory Affairs Group in November 1998. Mr. Fok has over 19 years of experience in financial services and securities regulatory work.Before joining the Stock Exchange he worked for the Securities and Futures Commission, the Office of the Commissioner for Securities and Commodities Trading of the Hong Kong Government and other private organisations in areas of corporate finance advisory work, securities dealing, venture capital investment, mainland China trade and investment management. CLAIRE GROSE is Special Counsel, Regulatory Policy Branch at the Australian Securities and Investments Commission (ASIC). For two years prior to July 2001, she held the position of ASIC’s Director, National Markets Unit.Before joining ASIC in January 1999, Ms. Grose was a senior partner in the national Australian law firm Freehill Hillingdale & Page, specialising in corporations and securities law. She has more than 20 years experience as a corporate lawyer and played a major part in devel oping changes to the Corporations Law in Australia in her role as a member of the Corporations Law Simplification Task Force from October 1993 to March 1997. DAVID HOLTHOUSE is National Manager, International Affairs, at the Australian Stock Exchange (ASX), which he joined in February 1996.His responsibilities include fostering links with governments, businesses and market participants to ensure that ASX has a role in shaping the regional capital market environment, coordinating ASX’s international activities to ensure strategic fit, identifying cross-border listing opportunities where ASX can add value, and providing an effective protocol service on behalf of the Exchange. He has been a member of the Working Committee of the East Asian and Oceanian Stock Exchanges Federation (EAOSEF) since 1997 and is currently the Federation’s Working Committee Chairman.A key activity of the Committee during this time has been the facilitation of cross-border trading. He was formerly a career naval officer, retiring as a Rear Admiral in 1993. He is a member of the governing bodies of a number of professional and charitable organisations, and a Graduate of the Australian Institute of Company Directors. He is a Chartered Professional Engineer, and a Fellow of both the Institute of Engineers Australia and the Institute of Marine Engineers (UK). He was appointed as an Officer in the Order of Australia in 1991. xviPrincipal Authors PAMELA S. HUGHES is a securities law partner at Blake, Cassels & Graydon LLP in Toronto. Her practice focuses on international corporate finance and mergers and acquisitions transactions and advice regarding capital market regulatory reform. Ms. Hughes is a member of the team of lawyers from Blake, Cassels & Graydon involved in the ongoing Ontario Securities Commission (OSC) Policy Reformulation Project which commenced in 1995. Prior to February 1, 1995, Ms. Hughes was Director of the Capital Markets/International Markets Branch of the OS C.Ms. Hughes has also taught international securities regulation in the LL. M. programme at Osgoode Hall and the LL. B. programme at the University of Toronto, and was a contributing editor to North American Corporate Lawyer. Ms. Hughes updated the chapter on Philippines securities law in International Securities Regulation: Pacific Rim, Volumes I and II (New York: Oceana) released in 2000. In 2000, Ms. Hughes was nominated by the federal Department of Finance to the financial services roster for dispute resolution under the North American Free Trade Agreement.ROBERTA S. KARMEL is a Professor of Law and Co-Director of the Center for the Study of International Business Law at Brooklyn Law School and Of Counsel to the law firm of Kelley Drye & Warren LLP In addition, she is a . director of the Kemper Insurance Companies. She was a Commissioner of the Securities and Exchange Commission from 1977-80, and a public director of the New York Stock Exchange, Inc. from 1983-89. She received a B. A. cum laude from Radcliffe College in 1959 and an LL. B. cum laude from New York University School of Law in 1962.Professor Karmel is the author of over 30 articles in legal journals, and writes a regular column on securities regulation for the New York Law Journal. Her book entitled Regulation by Prosecution: The Securities and Exchange Commission vs. Corporate America was published by Simon and Schuster in 1982. LEE BOON NGIAP heads the securities regulatory policy function in Monetary Authority of Singapore (MAS). His division is responsible for regulatory framework development, policy coordination and market analysis of the securities, futures and asset management industries in Singapore.Prior to taking up his responsibility in the Securities and Futures Department, Mr. Lee was the Representative in the MAS office in London, responsible for spearheading the promotion of Singapore as an attractive place for UK and European financial institutions to invest and set up operatio ns. Mr. Lee joined MAS in 1986 and worked in several departments before joining the Markets and Investment Department, where he rose to become a Senior Assistant Director in the Monetary Management Division. xvii Demutualization of Stock Exchanges—Problems, Solutions and Case StudiesThere his responsibilities included the conduct of Singapore’s exchange rate and monetary policies, and management and evaluation of the foreign exchange exposures of public sector entities. He holds an honours degree in Civil Engineering from the National University of Singapore and is a Chartered Financial Analyst. NATALIE A. MARKMAN is Counsel to Commissioner Thomas J. Erickson of the US Commodity Futures Trading Commission. She provides legal counsel and analyzes such policy issues as those created by derivatives market deregulation, electronic trading, and exchange demutualization.Ms. Markman reviews and evaluates all documents submitted by staff for Commission approval, including exch ange designations, contract and rule approvals, rulemakings, opinions, and enforcement actions. Previously, she served as Special Counsel in the Commission’s Office of International Affairs, as an Attorney-Advisor in the Office of the Chief Counsel of the Commission’s Division of Trading and Markets, and as an Attorney-Advisor to Commission Administrative Law Judge George H. Painter. Ms.Markman also was a Teaching Fellow for the Foundations of American Law and Legal Education program at the Georgetown University Law Center, where she received her J. D. degree in 1993. WILLIAM PEARSON is Director in the Corporate Finance Division of the Securities and Futures Commission (SFC) in Hong Kong. He is responsible for assisting in formulating policies for the effective regulation of listed companies and the securities markets. Daily work involves monitoring and regulating corporate activities of publicly listed companies, overseeing the Stock Exchange in its listing related fu nctions, nd approving offerings of shares and debentures to the public by non-listed companies. Mr. Pearson joined the SFC as a Senior Manager in the Corporate Finance Division in 1998. Prior to that he spent nine years as a lawyer with Norton Rose, a London law firm, practicing in the areas of corporate finance and M&A. He graduated as a lawyer from King’s College, London in 1987. ALAN JOSEPH SHAW is Executive Vice-President of the Singapore Exchange Limited, Head of Risk Management and Regulation.Previously, from 1991-2000, he was National Manager, Supervision of the Australian Stock Exchange Limited, Melbourne. He was educated at the University of Melbourne, from which he received a Bachelor of Laws in 1979, a Graduate Diploma of Public Policy in 1988, and a Master of Arts in Public Policy in 1994. From 1980-91, he served as a Principal xviii Principal Authors Legal Officer for the National Companies and Securities Commission, as a Judge’s Associate, and as a Barris ter. He has authored a number of articles on company law. xix Abbreviations ABBREVIATIONSAmex APEC Archipelago Archipelago Exchange ASIC ASTC ASX ATS BOT CATS CBA CBI CBOT CCASS CDNX CDS CFE CFTC CGE CME CMP CNS CSE CSRC DTF EBOT ECM ECN Australian Securities and Investments Commission Australian Settlement and Transfer Corporation Pty Ltd Australian Stock Exchange alternative trading system Bank of Thailand computer assisted trading system Colombo Brokers Association Canadian-based interlisted issuer Chicago Board of Trade Central Clearing and Settlement System Canadian Venture Exchange Central Depository System communication front-end system Commodity Futures Trading Commission Committee on the Governance of the Exchanges Chicago Mercantile Exchange Capital Market Masterplan Continuous Net Settlement Colombo Stock Exchange China Securities Regulatory Commission derivatives transaction execution facility exempt board of trade exempt commercial market electronic communications netwo rk American Stock Exchange Asia Pacific Economic Cooperation Archipelago Holdings, LLC Archipelago Exchange, LLC xxi Demutualization of Stock Exchanges—Problems, Solutions and Case Studies ETF ETP FCM FIBV GEM HIBOR HKCC HKEC HKEx HKFE HKFECC HKSCC IDA IISL IMM IOM IOSCO IPO KLSE KULBER LFX LSE MAS MCD MDEX ME MESDAQ MkSE MMCD MOF MOU MSE xchange traded fund equity trading permit futures commission merchant International Federation of Stock Exchanges Growth and Emerging Market Hong Kong Interbank Offered Rate HKFE Clearing Company Hong Kong Exchanges and Clearing Hong Kong Exchanges and Clearing Limited Hong Kong Futures Exchange Limited HKFE Clearing Corporation Limited Hong Kong Securities Clearing Company Investment Dealers Association India Index Services & Products Limited International Monetary Market Index and Option Market International Organization of Securities Commissions Initial Public Offer Kuala Lumpur Stock Exchange KLSE-Bernama Real-Time Information Services L abuan International Financial Exchange London Stock Exchange Plc Monetary Authority of Singapore Malaysian Central Depository Malaysia Derivatives Exchange Montreal Exchange Malaysian Exchange of Securities Dealing and Automated Quotation Bhd Makati Stock Exchange Mark to Market Collateral Deposit Ministry of Finance memorandum of understanding Manila Stock Exchange xxii Abbreviations MSRS NASD NASDAQ NASDR NSE NYSE OECD OM OSC OTC PCX PCX PCX Holdings PCXE PSE REC RIIAM SAFE SC SCA SCANS SCCP SCORE SCH SEA SEC SEHK SEL SEOCH SES SET Malaysian Share Registration Services National Association of Securities Dealers, Inc. NASDAQ Stock Market, Inc. NASD Regulation, Inc. National Stock Exchange of India New York Stock Exchange Organisation for Economic Co-operation and Development OM Gruppen AB Ontario Securities Commission over-the-counter Pacific Exchange PCX Equities, Inc. PCX Holdings, Inc.PCX Equities, Inc. Philippine Stock Exchange, Inc. recognized exchange controller Research Inst itute of Investment Analysts Malaysia South Asian Federation of Exchanges Securities Commission Securities Commission Act 1993 Securities Clearing Automated Network Services Sdn Bhd Securities Clearing Corporation of the Philippines System on Computerised Order Routing and Execution Securities Clearing House Securities and Exchange Act of 1992 Securities and Exchange Commission The Stock Exchange of Hong Kong Limited Taiwanese Securities and Exchange Law SEHK Options Clearing House Limited Stock Exchange of Singapore Stock Exchange of Thailand xxiiiDemutualization of Stock Exchanges—Problems, Solutions and Case Studies SFA SFC SFE SGX SGX-ST SIA SIIS SIMEX SIPF SME SRC SRO STAMP TBDC TSD TSE TSE RS TSE TSEC TSI Securities and Futures Act Securities and Future Commission SFE Corporation Limited (formally known as Sydney Futures Exchange Limited) Singapore Exchange Limited Singapore Exchange Securities Trading Ltd Securities Industry Act 1983 Special Isolated Immediate Settleme nt Singapore International Monetary Exchange Limited Securities Investors Protection Fund Small Medium Enterprise Board Securities Regulation Code Self-regulatory organization standard message protocol Thai Bond Dealing Center Thailand Securities Depository Co. , Ltd.The Toronto Stock Exchange TSE regulatory services Tokyo Stock Exchange Taiwan Stock Exchange Corporation Thailand Securities Institute xxiv PART I Issues Involved in Stock Exchange Demutualization Demutualization of Asian Stock Exchanges—Critical Issues and Challenges 1 Demutualization of Asian Stock Exchanges— Critical Issues and Challenges Shamshad Akhtar 1 1. 1 Introduction Stock exchanges offer a host of services to listing companies. These include: (i) liquidity, (ii) execution of services, (iii) signaling function for listed companies, (iv) monitoring of trading to prevent manipulation and insider trading, (v) standard rules to reduce transaction costs, and (vi) clearing of buy and order transaction s.Traditionally, stock exchanges operating as a â€Å"club of brokers† offered these services as monopoly operators serving largely under a mutual governance structure. The members of the club enjoyed rights of ownership, decision-making (one member, one vote), and trading. Value enhancement of the exchange was achieved by restricting access. Stock exchanges are now increasingly changing their business model and restructuring themselves across the world due to the simultaneous convergence of a number of powerful developments. The most notable of these has been the: (i) rapid advancement and innovation 1 Director, Governance, Finance and Trade, East and Central Asia Department, Asian Development Bank. 3 Part I: Issues Involved in Stock Exchange Demutualization n technology that has facilitated alternative trading systems (ATS) including electronic communication networks (ECNs); and (ii) growing market competition and integration as well as globalization induced partly by cross -border listing and portfolio flows, etc. Together these developments have eroded the significance of physical national stock exchanges and their trading floors. Consequently, across the globe stock exchanges are now rethinking their business strategy and model in order to find ways of how best to survive. In the process, exchanges have evolved towards new corporate, legal and business models to strengthen governance and face the competition.This process of transformation from members' associations into for-profit corporations is referred to as demutualization. There is a great need to distill lessons from the rapidly evolving experience with demutualization and synthesize both the normative and positive aspects of this exciting and relatively new structure so that developing countries can take advantage of it. This paper, therefore, aims to provide basic perspectives and dimensions of demutualization based on a review of literature and experience. In the process it explains: (i) Wh at is demutualization and how significant has it been? (ii) What factors have been driving the demutualization of exchanges? iii) What ownership, legal and strategic approaches are being adopted in the process of demutualization? (iv) What are the principal benefits of demutualization? (v) What regulatory challenges and responses does a demutualized exchange face? (vi) Have the demutualized exchanges been financially viable? 1. 2 Demutualization: Its Definition, Size and Significance Demutualization, in the strictest sense, refers to the change in legal status of the exchange from a mutual association with one vote per member (and possibly consensus-based decision making), into a company limited by shares, with one vote per share (with majority-based decision making).Demutualization makes sense if it induces a change in the exchange’s objective from managing the interests of a closed 4 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges member-based organization with a central focus on providing services for the benefit primarily of the members/brokers and keeping costs and investments limited to financing agreed by members, into a company set up with the objective of maximizing the value of the equity shares by focusing on generating profits from servicing the demands of their customers (brokers and investors) in a competitive manner. The number of exchanges that have privatized or listed has been increasing since the Stockholm Stock Exchange demutualized in 1993.In 1999, 11 stock exchanges had been privatized or listed and this number rose to 21 by early 2002, with several other exchanges either considering demutualization or already having stated their intent to do so. Of the World Federation of Stock Exchanges-formerly the International Federation of Stock Exchanges (FIBV)-member exchanges, around 52% of stock market capitalization is accounted for by demutualized exchanges. In Asia, demutualized stock exchanges including the Tokyo Stock Exchange now account for 76 % of the region's market capitalization (Figures 1. 1 and 1. 2). Figure 1. 1. Market Capitalization FIBV Stock Exchanges (2001) Figure 1. 2. Market Capitalization Stock Exchanges in Asia (2001) Demutualized 52%Not demutualized 48% Demutualized 76% Not demutualized 24% Source: International Federation of Stock Exchanges (FIBV) Source: International Federation of Stock Exchanges (FIBV) 1. 3 Motivation and Driving Factors for Demutualization Today, exchanges are no longer the sole primary and secondary market makers or the sole service providers of trade execution, signaling or other activities. This is largely because of the widespread proliferation of ATS and ECNs that have been supported by technological revolution and introduction of high capacity hardware, software packages and Internet facilities. ATS/ECNs have allowed efficient and effective matching 5Part I: Issues Involved in Stock Exchange Demutualization of the buy and sell orders of customers at lower transaction costs, while offering price transparency, trader anonymity and extended trading hours. Large global brokers are able to price-match within their own order-stock and only report the net position as a trade to the exchange (thus avoiding transaction costs). Given the competitive edge, the market share of the ECNs has grown. In 2002, ECNs have accounted for 45% of NASDAQ shares traded (compared to 25. 5% in 1999) – although they only accounted for about 5% of the listed shares traded. Of the several ECNs, Island ECN alone accounted for 32% of the ECN's market share.Instinet makes up another 29%, ArcaEx 27. 2% (formed through the merger of Archipelago and REDIBook), Bloomberg Tradebook 6. 3% and Brut ECN 5. 3%. The rest is accounted by other networks. 2 Having attracted substantial trading, ECNs are also entering into strategic alliances or tie ups with other exchanges or are offering services such as quotes and listing shares to further raise re venues. The growing competitive pressure has also triggered a wave of restructuring and mergers and alliances among securities markets to maximize economies of scale, accessibility and market reach, while providing global trade facilities through around the clock trading.For instance: (i) Euronext was established by the merger of former national exchanges in France, the Netherlands, Belgium and Portugal and the integrated equity trading markets of the northern-European countries of Sweden, Finland, Denmark and Norway; (ii) in the derivatives markets, a/c/e, the trading platform of Eurex and Chicago Board of Trade (CBOT), and Globex (Chicago Mercantile Exchange, Liffe, Singapore and others), have already formed global alliances with participants from all time zones, thus creating 24 hour trading markets; and (iii) NASDAQ has developed global alliances/interconnections to attract more liquidity for the United States and regional securities markets. NASDAQ has structured agreements wit h Europe, Japan, Hong Kong and Canada and is positioned for similar arrangements with China, Latin America and Middle East. In Asia, several exchanges have trading links and dual-listing agreements with the United States-based NASDAQ. 2 Global Finance Staff Research. 2002. National Association of Securities Dealers (NASD). JP Morgan, H. 6 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges The market integration has encouraged a process of disintermediation.With the emergence of new structures, there is no need for formal floors of stock exchanges or financial market intermediaries and participants, as they do not add value (to match the cost) to trading of securities. Exchanges with low market capitalization and weak trading volumes have had to particularly re-examine their operations and organizations with the view to increasing their competitive offering and price mix to minimize further diversion of trading volumes. Summarizing the emerging issues, a r ecent World Bank study3 concluded that: â€Å"Powerful trends of internationalization and migration of order flow are putting pressures on stock exchanges around the world. For some exchanges, already more than half of trading and listing has migrated offshore†¦ Migration makes it difficult for countries to sustain a full-fledged local stock exchange.As trading volumes further decrease, financing the fixed overhead of maintaining market oversight, clearing and settlement systems, †¦ and generating enough business for local investment banks, accounting firms, and other support services will become even harder, especially for smaller emerging markets. The trend towards increased migration will thus make it more difficult for small exchanges to survive. † [page 18] In order to survive in this environment, exchanges need to diversify and move towards commercially oriented business practices with greater focus on improving efficiency, accessibility and ease of use of the ir systems. Since exchanges have higher overhead costs (as compared toECNs) due to (among other things) cost of building and facilities, they need to strive harder to achieve profitability and economies of scale, while offering competitive services and fees compatible to those being provided by the ECNs. These considerations have driven exchanges to consider alliances and consolidation. By merging two exchanges, the exchange can multiply the volume at the same overhead cost (provided cost cutting synergies are fully explored). It can thus offer to the investors and brokers more listed securities for trading on the same platform. There are forecasts available that indicate that by 2010, there will be fewer than five major stock exchanges; and, perhaps two or three of these will be entirely electronic markets—which have not yet been established. 4 3 4 Claessens, Stijn, et. l. 2002. Explaining the Migration of Stocks from Exchanges in Emerging Economies to International Centers. World Bank Working Paper No. 2816. Young, Patrick. 1999. Capital Market Revolution: The Future of Markets in an Online World. Harlow: Financial Times. 7 Part I: Issues Involved in Stock Exchange Demutualization 1. 4 From Mutuality to Demutualization of Exchange The transformation of exchanges from mutual to demutualized structure involves two key features: (i) a change in the ownership structure, and (ii) a change in legal as well as organizational form. Both need to be accompanied by adequate safeguards to ensure appropriate governance.Depending on the nature of ownership and legal forms adopted, the demutualized exchange—given their corporate model and facing growing competitive pressures—lends itself to focusing on evolving strategic positioning which, depending on a number of conditions, could involve greater market consolidation, vertical integration and product diversification. 1. 4. 1 Ownership Structure The transformation from the mutual member-based to demutu alized exchange involves issues of transferability of ownership from members to nonmembers. There are various ways that dilution of membership can be achieved. Sequentially, it involves conversion of existing member seats by monetizing these and assigning a certain value per seat.Once the valuation is done, the members can opt to convert their membership to share ownership or to sell off their interest to nonmembers. In most cases of demutualization of exchange, members have opted to retain their share ownership. A listing of equity shares in the exchange facilitates the unlocking of the members' equity and buy out of the interest of the traders, while leading to the monetization of the value of the members' seats. An entity with freely transferable shares, rather than membership rights, can form equity-swap-based strategic alliances or mergers with other exchanges, domestically or in other countries or time zones. Such alliances are stronger and offer greater credibility than pure cooperation agreements.To avoid stock exchanges operating in special or limited interests, securities regulators often place restriction on ownership by one holder or a group of holders to non-controlling stakes of 5-10%. Limits on ownership stakes could affect potential take-over by other exchanges. Such take-overs could have merit in terms of efficiency and economies of scale of the market especially where more efficient participants acquire inefficient ones. Recognizing the synergies of take-overs, most demutualized exchanges have provisions in place to allow other 8 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges exchanges, or technology partners, the possibility of acquiring or swapping strategic stakes.The reluctance to relinquish control to strategic partners or owners remains however one reason why non-equity, swapbased cooperative alliances have been more prolific in the exchange industry. 5 Indeed, several hostile take-over attempts (includin g OM Gruppen's moves to acquire the London Stock Exchange in 2000, and the bidding war for Sydney Futures Exchange by Australian Stock Exchange and Computershare in 1999) have failed due to the voting strength still exerted by the brokers (Table 1. 1). 1. 4. 2 Legal and Company Structure Most stock exchanges are registered as private limited companies with a paid-up capital base, while others operate as member associations or cooperative arrangements.At the end of 2000, FIBV statistics indicates that 90% of its member exchanges, accounting for 60% of market capitalization, were private limited companies. Almost 46% of these were legal company exchanges with inside ownership. Around 25% (accounting for 21% of market capitalization) of the exchanges had been privatized, 13% (accounting for 8% of market capitalization) were registered as listed companies6 and the remaining 17% had other types of status—with some being state-owned or semi-public entities (such as the Shenzhen and Shanghai Stock Exchanges (SZSE and SHSE). As evident in Table 1. 2, in Asia, with the exception of SZSE and SHSE, most of the exchanges are legal entities registered as private limited companies.So far, five exchanges in Asia have been fully demutualized, with three of these listed on their own exchange, and another two have announced plans to demutualize in 2003. The legal structure for the demutualized exchange is based on considerations similar to that for any profit-making company including decisions on number of shareholders (partnership vs. corporation), voting procedures, limitation of liability (liability limited to equity invested vs. joint and several liability for all debts), accounting and reporting requirements (based on taxation laws and on partners/shareholders' access to information of the company) and distribution of dividends (re-investment 5 6Interestingly, this is similar to another rapidly globalizing industry with national quasimonopolistic companies—th e airline industry—in which global cooperation alliances have proven very important for customer retention. Notably half (of six) of the exchanges that have listed themselves are in Asia. 9 Part I: Issues Involved in Stock Exchange Demutualization Table 1. 1. Asian Stock Exchanges: Shareholding Structure SHAREHOLDING LIMIT Australian Stock Exchange (ASX) Initially maximum shareholding limit was 5%, but the Financial Services Reform Act raised this to 15% in March 2002. Higher shareholding can be allowed if it is in national interest subject to approval of the Minister for Financial Services and Regulation.Singapore Exchange Limited (SGX) Maximum shareholding limit is 5% and can be higher if approved by the Monetary Authority of Singapore (MAS). In 2001, MAS announced that, with its approval, strategic investors and fund managers who invest pools of consumer funds could acquire up to 10% of share-holding. SHAREHOLDING STRUCTURE As of June 2001, issued and paid-up capital of AS X amounted to A$106,282,000. After listing, ASX’s shareholders rose from 606 to 16,313. Besides individual investors, the large domestic and international fund managers subscribed to ASX equity including Chase Manhattan Nominees Ltd. whose holding is 6. 9%, National Nominees Ltd. 3. 5%, followed by AMP Life Ltd. (2. %), Westpac Custodian Nominees Pty. Ltd. (2. 11%) and Citicorp Nominees Pty. Ltd. (2. 07%). The top 20 shareholders account for 27. 3% of issued capital. SGX has authorized share capital of S$1,000,000,00. As of August 2001, its issued and paid-up capital stood at S$10,000,000. The top shareholders include SEL Holdings Pte. Ltd with 25% of total shares (but owing to the restrictions in the exercise of votes attached to shares, SEL is not regarded as a substantial shareholder), Raffles Nominee Pte. Ltd. (12. 9%), followed by DBS Nominees Pte. Ltd. (9. 9%), Overseas-Chinese Bank Nominees Ltd. (5. 3%) and HSBC Singapore Ltd. and Citibank Singapore (each over 4. %), a nd others with significant stake in the range of 0. 60-2%. The top 20 shareholders account for 77. 8% of total shares. Out of the shares issued to SEL, the Company made an Initial Public Offer (IPO) and a private placement. The IPO raised S$470 million. Consequently, the issued and fully paid share capital of SGX increased from S$61,670 as at 30 June 2000 to S$10 million as at 16 November 2000. HKEx has authorized share capital of HK$2,000,000,000. As of December 2001, issued and fully paid capital amount to HK$1,040,664,846. As of March 2002, the two Central Clearing and Settlement System (CCASS) Participants held 28. 8%, and 12. 1% of HKEx’s issued share capital.SFC granted approval to these two entities as minority controllers of HKEx on the basis that the shares are held in custody for their clients. Hong Kong Exchanges and Clearing Limited (HKEx) Maximum shareholding limit is 5%. The Securities and Futures Commission (SFC), in consultation with the Finance Secretary, may give approval to a person to hold more than 5% where it can be demonstrated to be in the interest of the public or the investing public. Philippine Stock Exchange (PSE) The Securities Regulation Code imposes a 5% maximum shareholding limit for individuals and individual companies and 20% for industry or business groups. The demutualized PSE has an authorized capital stock of P36. million, with subscribed and fully paid-up capital base of P9. 2 million representing a portion of the members’ total contribution of P286. 6 million as of 31 December 2000. Each of the 184 member-brokers was granted 50,000 common shares of the new PSE at a par value of P1. 00 per share. The remaining members’ contribution of P277. 4 million will be booked under additional paid-in surplus. Prior to demutualization, TSE had a capital of Y11,500 million. After demutualization, TSE raised it to Y22,874 million by issuing 2,300,000 shares for equal allotment to its members. The total number of au thorized shares after demutualization is 9,200,000. TSE now has 114 shareholders.Tokyo Stock Exchange (TSE) Under the Securities and Exchange Law, there is a 5% maximum shareholding limit. Source: Stock Exchanges. Latest Annual Reports 10 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges Table 1. 2. Asian Stock Exchanges: Legal and Corporate Structure STOCK EXCHANGE TSE LEGAL FORM TSE was demutualized on 1 November 2001 Legal Status: Company SGX was demutualized in December 1999 Legal Status: Company (for profit). Singapore Exchange Securities Trading Limited (SGX-ST), the stock exchange, is a wholly-owned subsidiary of SGX. HKEx was demutualized in March 2000 Legal Status: Company (for profit) with the Stock Exchange of Hong Kong Limited (SEHK) set up as a wholly- owned subsidiary of HKEx.ASX was demutualized on 13 October 1998 Legal Status: Company (for profit) LISTING STATUS Not listed (plans to list in FY2005) SGX On 23 November 2000, the Company was admitted for listing of SGX-ST. SGX became a public-listed company with 1,000,000,000 ordinary shares outstanding. HKEx Listed ASX ASX was listed on its own exchange on 14 October 1998. When ASX shares were quoted on 14 October 1998, they closed at A$4. 25; sub-sequently they rose as high as A$16 by 16 March 1999. By the end of 1999, they traded at a range of A$10 to A$11, valuing the company at between A$1 billion and A$1. 1 billion. Not Listed PSE PSE was demutualized in August 2001 Legal Status: CompanySource: Stock Exchanges. Latest Annual Reports needs vs. distribution to partners, taxation). In most jurisdictions, a limited liability company has been observed to be the traditional and preferred option for profit-making ventures involving more than a close group of partners. The methods for transforming an association into a limited liability company varies between jurisdictions, but in principle, the existing members agree to transfer the assets and operations of their associ ation to a newly formed company, in exchange for shares in that new company. 11 Part I: Issues Involved in Stock Exchange Demutualization 1. 5 Benefits of Demutualization of Exchanges 1. 5. Improvements in Corporate Governance Exchanges, when run as mutual associations, clubs and cooperatives of traders and brokers allow members exclusive rights of access to trading systems and platforms. Operating under this mutual structure, exchanges enjoyed quasi or full monopoly on trading and they derived profits from the intermediation of nonmember transactions. Since members under the mutual structure were owners of the exchange, they imposed rights to trading and disallowed direct access to the trading floor to any outsiders. Brokers inadvertently resisted changes if these entailed additional costs, loss of revenue or competitive threat.This resistance eventually impeded the ability of the company to react quickly to a rapidly changing market environment. Also, in some developing countries if the exchanges enjoyed a legal or decreed national monopoly, government-appointed officials and stakeholder representatives were often represented on the board. While in the short-run such appointments may have proved conducive to mitigating entrenched vested interests, in the long-run these can prove counter productive leading to unhealthy government interference. With the changing economics of automated auction trading and its easy access electronically, the economics of member-cum-trading floor based exchanges has lost its merit.As a result, it has generated pressures to replace the age-old reliance on one member, one vote and the committee-based decision structure where control is vested with the interest groups that have exclusive rights of intermediation at exchange. Under demutualization, there is increased acceptance to separation of ownership from membership that automatically provides trading rights. This segregation helps introduce effective corporate governance if: (i) there are accompanying improvements in the incentive structure,7 which allow the exchanges to sell their equity stakes to nonmembers and outsiders, (ii) decision making is based on this new ownership structure (not on rights of intermediation), and (iii) when there is an effective oversight of a governing board and a company structure. 7 Steill Ben 2002.Changes in the Ownership and Governance of Securities Exchanges: Causes and Consequence. In Brookings-Wharton Papers on Financial Services. Washington D. C. : Brooking Institution Press. 12 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges Since under demutualization the economic ownership of the exchange is separated from trading membership, it is not appropriate that interest groups (such as the trading members) have exclusive authority over the decisions of exchange. After demutualization, some exchanges have granted less than 50% of the voting rights to the broker members on the board of the exchange (see Table 1. 3).To gradually decrease broker influence on the board, the exchanges have appointed independent directors or directors that are nontrading owners. After demutualization, the appointment of government appointed officials (a common feature of exchanges in developing economies) has by and large been viewed as controversial given that the demutualized exchange is a private sector company operating in a competitive environment. In environments where broker influences are often daunting, the continued role of the representative(s) of the securities regulator can support the transition of exchange till such time as the regulation is changed to allow the exchanges to operate in a fully competitive manner.Besides appropriate board representation, it is important that the management of the exchange is fully qualified and motivated to act not only in the best interests of the shareholders, but also to conduct the business in a prudent manner so as not to disrupt the orderly and fair trading in the capital markets. To ensure that this public interest is satisfied, â€Å"fit-and-proper† screening of the board and management, similar to tests put in place in the banking regulations of many jurisdictions, could be undertaken. The management should be accountable to the board, which would determine management's appointment and remuneration, supervise the strategic direction and audit the financial and operational results, including risk management, and if needed, effect the removal of management.To ensure the effective supervision and auditing of management, it would seem prudent to ensure that a majority of board members are truly independent directors. To remain competitive, a stock exchange must follow international best practices in ethics and procedures. This is necessary in order to ensure that institutional investors do not shift their investments to other alternatives perceived to be more fair or secure. Therefore, it is in the profit-motivated exchange's best interest to ensure fair and transparent practices; and, as such, good corporate governance needs to be an integral part of the exchange once it is driven by the profit motive. 13Part I: Issues Involved in Stock Exchange Demutualization Table 1. 3. Asian Stock Exchanges: Board Representation STOCK EXCHANGE ASX BOARD REPRESENTATION/COMPOSITION 9 member board of directors. Of ASX's 9 directors, 4 are ASX Members/ Affiliates. 11 member board of directors. Of SGX 11 directors, 4 represent broker interests. SGX plans to broaden membership base by attracting new international members both global and regional securities houses. In addition, SGX will be introducing a new membership structure that allows new and existing members to choose between trading-only membership or clearing-only membership or both trading and clearing membership. Central Depository Pte. CDP) clearing rules have been revised to incorporate the admission requirements and expect to launch the new membersh ip structure in the third quarter of 2002. The board comprises 8 Public Interest Directors appointed by the Financial Secretary to represent public and market interests, 6 Directors elected by shareholders, and the Chief Executive of HKEx who is an ex-officio board member. Pursuant to the Exchanges and Clearing Houses (Merger) Ordinance, the number of Public Interest Directors will be reduced to no more than the number of elected Directors immediately following the annual general meeting of HKEx in 2003. 51% of the board (8 of 15 directors) should be independent. 11 member board of directors, of whom 6 are outside directors. SGX HKEx PSE TSESource: Stock Exchanges. Latest Annual Reports 1. 5. 2 Opening Up of Trading Rights of Exchanges Consistent with the for-profit motive, the demutualized exchanges in Asia have included provisions to admit new trading partners (Table 1. 4) and permitted eligible applicants (new customers) unrestricted commercial access to the services of exchange. Some exchanges, however, adopted a moratarium period on the issuance of new trading rights. If share ownership were a requirement for trading membership, it would be relatively easy for existing members to protect their market share by refusing to sell existing or issue any new shares, thus barring new entrants.If new shares can only be issued to the active trading members, then the public, financial institutions, institutional investors and others would generally not be able to invest. The question of a broader ownership 14 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges Table 1. 4. Asian Stock Exchanges: Trading Rights and Dividend for Profit-Seeking STOCK EXCHANGE ASX TRADING RIGHTS Trading rights may be acquired through application with ASX or from an existing Participant. Trading rights have to be acquired through application with SGX, as these cannot be secured through transfer from an existing member. In July 2000, SGX opened the securities mar ket to new members, and five new member firms joined in 2000.SGX also changed its rules to allow a single legal entity to be a member firm in each of the securities and derivatives markets thereby furthering their members' opportunities to trade in both markets. Access to the markets may be obtained through acquisition of trading rights from existing members of the exchanges and from HKEx after the expiry of a two-year moratorium on March 2002. Trading rights issued by HKEx (other than those automatically conferred to the exchange shareholders on the effective date) will not be transferable. For a further period of 2 years thereafter, no new trading rights will be issued for less than HK$3. 0 million per Stock Exchange Trading Right or for less than HK$1. 5 million per Futures Exchange Trading Right.An entity may acquire trading right from an existing trading participant (with approval of TSE), or through application with TSE. Trading right can be acquired through purchase from an e xisting trading participant. PSE temporarily imposed a moratorium on the issuance of new trading rights and limits it to its present number of 184, transferable for an unlimited period of time. PAYOUT RATIO 70% of net profit after tax. 85% SGX HKEx 46% TSE n. a. PSE n. a. Source: Stock Exchanges. Latest Annual Reports base of the exchange (as a public listed company) is critical in situations where exchanges need to raise funds for future investments. Broader ownership would help avoid potentially large swings in the value based on the trading of a limited number of shares only.With share ownership separated from the right to trade, the question of the compensation of existing trading members arises especially since trading rights are granted freely to new members when the existing 15 Part I: Issues Involved in Stock Exchange Demutualization members had to acquire their trading memberships. If existing shareholders continue to retain their shares, then they would enjoy the trading r ights granted to the shareholders and there would be no need to compensate them for trading rights. This is argued largely because for both the old and new shareholders, the economic value that the shares now represent would always be inclusive of the right to trade provided such rights have been granted.In order for shares to have economic value, there must be an expectation of dividends, at some point in the future. The introduction of a dividend policy (which does not exist in mutual exchanges), coupled with a listing of the shares, thus transfers the value of stock exchange share ownership from the right to trade, to the right to receive dividends and trade the shares (see Table 1. 4). These factors should in theory minimize the resistance to the demutualization of exchanges by the brokers. However, a moratorium (limited in time) on the granting of new trading rights has often been introduced to lessen the competitive impact on smaller brokers. 1. 5. Restructuring and Alliances of Exchanges After being demutualized, most exchanges have revisited their commercial strategy to improve viability and enhance business prospects. Exchanges have opted to: (i) consolidate, merge and/or integrate their domestic markets; (ii) build alliances by establishing cross-border linkages with other exchanges within or outside the region; and (iii) merge with other exchanges—a phenomena more predominant thus far in Europe. In Asia, the exchanges have by and large opted thus far for (i) and (ii). Emphasis has been largely to re-group businesses to broaden the markets, offer issuers and investors better distribution networks and improved liquidity.Predominant in-country mergers or restructuring have taken place in Singapore, Hong Kong, Australia and Japan, and in early 2002, the Kuala Lumpur Stock Exchange (KLSE) merged with MESDAQ (Table 1. 5). In-country restructuring of exchanges has involved: (i) Merger of two or more exchanges into a single viable nationallevel compa ny, which would be of sufficient scale to be an interesting partner for other (foreign) exchanges, and as a listed company for investors to consider. While these mergers lead to 16 Demutualization of Asian Stock Exchanges—Critical Issues and Challenges Table 1. 5. Asian Exchanges: Mergers and Alliances STOCK EXCHANGE TSE MERGERS PRIOR TO DEMUTUALIZATION Hiroshima and Niigata Stock Exchanges merged with the TSE in March 2000. ALLIANCES W

Tiger Airways- Singapore Essay

Our marketing team ran a market investigation in Guangzhou, China. The aim of this research is to understand who are the core users, what are their flight experience and which values define them. The answers will lead us to comprehend their purchasing behaviour, hence allow us to plan a strategy for our company’s expansion. We will conduct our research with in mind Tiger Airway’s mission and vision: Mission – to address the needs of our budget conscious travellers looking for a reliable and fun low-fare service in the Asia pacific region. Vision – we will empower people to explore new destinations and accumulate memorable experiences by providing an expanding network of destinations and affordable travel options. We will always commit to maintain the highest norms of safety, security and reliability. As you may know, our budget carrier model revolves around three customer focused core strategy: Market stimulation – creating possibilities for new travellers and empowering budget conscious customers to fly more. Cost controls – keeping fares low Capacity utilisation – maximising and planning air traffic With approximately 1.35 billion citizens the Chinese market is alluring for any businesses, mostly for low cost carriers. However, the diversity of mind and purchasing power can be a great challenge for our expansion. To meet the needs, wants and expectations of each category of customers, we undertook a market research with the help of two Chinese student through a laddering interview. The answers gave us a glimpse of the desires of this population. Further, more thorough, market research must be made before any decisions are taken. We, also, allowed ourselves to provide in this report, a non-exhaustive list of suggestions, after having developed some understanding of the customer’s key insights. Although our role is to research, we thought it would offer us further hints before a final verdict is made.

Australian Economy Assignment Example | Topics and Well Written Essays - 2000 words

Australian Economy - Assignment Example The government, on the other hand, utilizes fiscal policies to ensure the economy grows at stable rates. The Reserve Bank and the government have ensured stability in the economy of Australia using fiscal and monetary policies since November 2011. The fiscal policy is in form of taxation and government spending; while the monetary regulation is in form of the cash rate and open market operations. The government and the Reserve Bank have succeeded in stabilizing prices and economic growth through the policies. The bodies have not managed to achieve full employment and balance of payment. Performance of the Australian Government and the Reserve Bank in running the economy from November 2011 to November 2013 Price Stability Price stability is achieved when the annual rate of inflation in a country is zero. However, it is hard for a country to achieve a zero rate of inflation because of price and wage rigidities. Price and wage rigidities refer to those charges that do not decrease below certain levels, for example, salaries of executive officers in organizations. The Reserve Bank of Australia set an inflation target of two to three percent (Reserve Bank of Australia, 2013); after taking into account price rigidities in the economy in 2010. Other countries that target the same figure include Hungary, Mexico, Spain, Japan, and Canada among others. This means that the rate that Australia set is favorable and it is widely accepted in the world. The Reserve Bank set the low inflation rate target to avoid the undesirable consequences of high rates of price instability, which include uncertainty, unfair distribution of wealth, and increasing tax benefits for businesses (Reserve Bank of Australia, 2013). These effects, consequently lead to low annual economic growth rate. The bank has managed to maintain the target inflation rate since November 2011. Year January -March April-June July-September October-December Annual 2013 2.5% 2.4% 2012 1.6% 1.2% 2% 2.2% 1.7% 2011 3.3% 3.5% 3.4% 3% 3.3% Quarterly inflation rates since January 2011. (http://www.rateinflation.com/inflation-rate/australia-historical-inflation-rate) The above figures show the rates of inflation in Australia since January 2011. The study, however, aims at determining the average rates from November 2011 to 2013. These include all the quarters of 2013 and 2012, and the last section of 2011 whose rate was 3%. The rate has remained within the 2-3% range in all the relevant quarters of the study. This means that the Reserve Bank has managed to stabilize prices in the country by use of monetary policies. Unemployment Unemployment is the inability of a qualified person to fail to secure a job at the prevailing wage rates. The unemployed people are willing to take jobs at the given wage rates, but they fail to find jobs in the market. Unemployment leads to undesirable consequences in the economy, for example, it lowers the per capita income, increases dependency, and leads to theft and prosti tution among others. The government and the Reserve Bank have failed to ensure low rates of unemployment in the country since 2011 because of the instability of some sectors in the economy. Long term unemployment has remained above 5% in the country since October 2011; whereas the velocity was below that amount before this period (Chua, 2013). This means that the management of unemployment has been inefficient, and this pulls down the economic growth

Strategies for healthcare Essay Example | Topics and Well Written Essays - 500 words

Strategies for healthcare - Essay Example Our tactful management charts small term and long term plans to effectively meet the set targets and enhance profitability in every quarter. Targeting our corporate clients we try and imbibe the latest technology and best medical practices to give them high quality services. We invest heavily in research and technologies to ensure expedite medicinal services to our clients. We ensure a streamlined functioning of various departments and absolute coordination between them so as to get the maximum output. Our investments and services are directed towards achieving overall growth as an organization, via customer satisfaction. We have a vision of coupling technology and human expertise to offer world class health services and to realize it, the support and appreciation of our customers in imperative for us. Hence we imbibe extremely user-friendly technology and highly motivated work force to make sure that our clients are completely satisfied with our services. Well planned investments in novel technology and research have only brought us more laurels and better returns with every passing year. From routine checkups to emergency situations we are well equipped to meet all with full competence and are thus regarded as a trustworthy name in the industry. Employees can be t

Online poker Research Paper Example | Topics and Well Written Essays - 250 words

Online poker - Research Paper Example shall be taken care of by the provision of online poker as it aims to provide a more secure setting for gambling and consequential feuds, vendettas and other illegitimate participatory activities. The most significant advantage, however, is vested in the fact that poker rakes will bring large amounts of revenue to the government. The revenue generation is steadily building over the years and it is not surprising that the gambling profits for the government are almost doubling over a period of every five years which makes online poker a very promising arena for revenue generation. Furthermore, the expansion of the poker during recent times such as improved disposable earnings giving customers additional time for relaxation and entertaining activities and the altering socio-demographic traits have worked as stimulants to customer using money on poker and other gambling activities reassuringly make it a sound ground for government

Egyptian Cultural Values and Beliefs Essay Example | Topics and Well Written Essays - 250 words

Egyptian Cultural Values and Beliefs - Essay Example Women take care of their homes and should not engage in adultery besides they have right to education, employment and right to own property. Conversely, men provide and make decisions for their families besides giving permission when they are marrying of their daughters. Contrary to the women, men are free to wear any kind of male clothes they wish so long these attires would go against their beliefs’ statutes and culture. Children stay with their mothers besides mandated to attend schools, religious teaching sessions, assisting parents as well as behaving well. Boys are more favoured compared to girls whereby the latter do not have any freedom to mingle with boys except their brothers though at certain times in the family. Children join school at the age of six years where they ought to learn up to secondary level. Young children in most cases tend to study their traditions and religion teachings the first and essential one being memorizing Qur’an and Hadith (Stewart). Some of the practices, which Qur’an prohibits, include having sexual relations before marriage, looking down when talking to someone, use of left hand, failing to finish all food in one’s plate. These besides other of the similar sort based on Islamic culture are taboos. I like the way the Egyptian culture distinguishes the responsibilities of men, women and children. This allows each person in the community to play his or her own roles without interfering with those of colleagues. Hence, promoting respect and peace in the family levels as well in the entire Egyptian community because each member knows his or her responsibilities besides not partaking other peoples tasks hence reducing disagreement cases (Stewart). Some of the Egyptian elements that I may like to emulate and advocate in my family or community encompasses how women tend to be responsible in taking care for their homes, children as well as not engaging in affairs out of own marriages (Stewart).

Impact of nationalism on america Essay Example | Topics and Well Written Essays - 1250 words

Impact of nationalism on america - Essay Example The actions that the members of a nation take when seeking to attain (or sustain) self-determination (â€Å"What is Nationalism?†). The nationalism brings up questions about the concept of nation which is usually defined in the terms of common ethnicity, origin or cultural ties. While an individual’s membership in a nation is oftentimes considered as voluntary. It also bring forth questions about whether or not self-determination should be understood as necessitating having complete statehood with complete authority over the domestic and international associations. Nationalism arises from the idea that the nation, in contrast to the nation—state is formant of aboriginal people to an area. It is also the longest-lasting and most prudent government. Nationalism was the most powerful and successful political force of the 19th century which emerged from two main sources which were the Romantic Exaltation of ‘feel’ & ‘Identity’ and the libera l requirement that a legitimate state be based on ‘people’ instead of a dynasty e.g. God or imperial supremacy. Both these movements were middle class movements. (â€Å"What is nationalism?†). The pros of nationalism are many. One of the main factors of nationalism is that it sets a sense of unity among the groups of nation no matter with which country it belongs to. It gives a feeling of belonging as people tend to work for the betterment of the state which lets people come together with common interests and achieve their ultimate goals. Nationalism also serves to unite a group of people, enabling them to make economic, political, and social progress. Unluckily however, nationalism has many cons too. It can often cause divergence between various nations, leading to war. When nationalism leads nations towards aggressiveness and certitude it leads nations towards destruction. The cons also include risking isolation from other groups of people who do not share the same land, and not profiting from their capability and goodwill. Over the past 10 years, a new nationalist movement has come into sight and gained huge strength in United States of America. It’s the new ‘white nationalist’ movement which brought the potential to disturb the already frail race relations. Shunning violence, this movement seeks to expand its influence primarily through the persuasion & argument embattled at the white Americans aggrieved over racial double standards, high black-on-white crime rates, and race based affirmative action policies. The new white American nationalism movement has been energized by advocacy of multiculturalism as well. Some of the many names of the white nationalists that we know about today are Don Black, David Duke, Paul Fromm, Norman Lowell, Robert Jay Mathews, Revilo P. Oliver and William Luther Pierce. Due to the emphasis on the group self determination; multiculturism has brought white nationalists with justification f or advocating a corresponding form of white camaraderie. The members of white nationalism are different from the other nationalism groups and are cultured, intelligent and usually hold impressive academic degrees from America’s premier colleges and universities. This new breed of white racial advocate is a far cry from the populist politicians and hooded Klansmen of the Old South who fought the losing combats for separation and white superiority. History has seen many countries suffering from the effects of nationalism; it has brought

Economics in Mexico Essay Example | Topics and Well Written Essays - 1250 words

Economics in Mexico - Essay Example However, the 2008 recession affected Mexico and other Latin American nations making its Gross Domestic product contract by more than six percent. Regardless of unprecedented macroeconomic stability that reduced the record of inflation and interest rates to be low, this has made the per capita income increase leading to enormous gaps between populations living in rural areas and urban areas, states on the northern part and the southern part, and between the rich and the poor. Some of the main challenge the Mexican government faces include improvement in infrastructure, modernizing revenue collection system, changing the labor laws and reduction of inequality of the income (Cantwell et al.). Mexico’s economy contains industrial and services sectors that are rapidly growing as well as an increasing private ownership; at the ports, the administration has increased competition, and other things such as distribution of natural gas rail roads, generation of electricity, airports and telecommunications have also increase. The economy of Mexico is often export oriented and over 90% of business that are conducted in Mexico are under free trade agreement with over forty countries that include Israel, Japan, Central America, etc. NAFTA is one of the most influential free trade agreements that are used in Mexico beginning 1994; some of the governments that signed into NAFTA include the United States and Canada. 90% of all the exports and 55% of all the imports that took place in 2006 was between Mexico and two northern partners; there has been an approval of the judicial reforms and import tax from the Congress of Union while the reforms regarding oil industry is still under debate. The labor force of Mexico is seventy eight million and World Trade Organization and OECD rank Mexico’s workers as one of the hardest working globally in numbers of hours worked a year although the profitability per man-hour is relatively low (Cantwell et al.). Mexico is ranked the 16th largest exporter and 82% of all the exports got to the United States, trade with both Canada and the United States has tripled after NAFTA was implemented in 1994. The products manufactured and exported from Mexico is equivalent to the amount of goods produced by all the other Latin American states combined together; hence a large percent of foreign trade takes place in Mexico’s economy as compared to any other large country. Manufactured products are Mexico’s number 1 exports and the country has recently built its infrastructure in order to enhance trade with other countries. Carlos Helu owns a telecommunication company in Mexico and is considered one of the world’s richest men; his company is however a monopoly in Mexico and it controls 70% of all mobile phones, 70% of broadband and 80% of home phones lines. There are concerns that the lack of competition in the telecommunications sector is hampering economic growth and mobile phone penetration in Mexico is similar to that of Iraq at 85%. In Mexico, its costs double to have broadband connection and this is similar to Chile, and things that are near monopolies include the Bimbo, Televisa and Cemex. Mexico is ranked the ninth in oil production and it exports over three million barrels daily; this is less than that of Iraq, Canada, and China but is more when compared to that of Nigeria, Venezuela and Kuwait. Pemex is the country’

CV edit Essay Example | Topics and Well Written Essays - 500 words

CV edit - Essay Example I obtained valuable teamwork and planning skills. Particularly in the course of writing my dissertation, I handled software applications in different financial areas. These include STATA, VBA, and Excel. In the course of developing research skills, I have conducted questionnaire based surveys with the help of my team and have interviewed 20 students. Understanding of the microeconomic and macroeconomic theories, corporate management, and knowledge of the basic theory and practice in stock company operations (through internship in Dong Xing Stock Company) Responsibilities included planning, implementing and supervising financial policies; planning and implementing financial projects related to the city’s infrastructure; managing cash resources; meeting financial bodies; allotment audit; project budgeting; variance analysis & credit approval; management of bank balances and long-term money management. This was also a part time engagement which provided me with valuable experience on teaching and training. I conducted and managed classes on part time basis that called for time management, scheduling, mentoring and monitoring skills. I am fluent in English and Mandarin. I enjoy playing piano, singing, swimming, and dancing (Modern and Latin). I also love drawing and short writing. I think I am a sensible person who treats everything carefully and has a strong sense of

Project One Case Study (Field is Business, Class is Business Policy Essay

Project One Case Study (Field is Business, Class is Business Policy and Strategy ) - Essay Example American made teddy bears- this is probably the most important core competency of the firm giving it the overall market recognition as well as acceptance at the national level. 2. Developing quality products is another important core competency of the firm given the fact that the firm due to the use of high quality American material and labor in manufacturing the teddy bears. EFAS and IFAS Matrix Factor Weight Rating Weighted Score Comments Strengths American Heritage 0.2 5 1 Firm has a rich American heritage and over the period of time has been able to achieve the success owing to the fact that it has American material and labor in preparing its products. Quality products 0.3 5 1.5 Over the period of time, firm has made quality products made directly from the American material. Weaknesses Poor Management Structure 0.3 5 1.5 Over the period of time firm has changed few CEOs. Further, board is not so active. Declining sales 0.2 5 1.5 Firm is facing declining sales since last few years owing to the structural problems. Opportunities Opportunity to sell on internet 0.3 5 1.5 Internet can offer a growing niche market for the firm to grow. Increase overall retail presence by developing different distribution channels. 0.2 5 1 Developing alternative channels of distribution will offer better opportunities to sell Threats Increased competition from firms offering gift items 0.3 5 1.5 As described the firm is not actually in the business of selling teddy bears but selling gifts. Structure and nature of industry 0.2 5 1 Overall industry is fragmented thus increasing the level of competition. SWOT Factors Considering the above discussion and facts provided in the case, following are the SWOT factors 1. Firm has a rich history and American heritage which offered the firm an opportunity to develop a niche market for itself in the local market. 2. Offering high quality services backed up by excellent customer services. 3. Firm works in a fragmented industry therefore the ov erall nature and extent of competition can be relatively higher and more intense. 4. Opportunity to develop alternative distribution channels through internet and ecommerce. Globalization Aspects Firm outsourced its materials procurement thus effectively participating in a globalized market and being affected by the forces dominating the global trade. There may some important aspects of globalization which can effectively allow the company to enjoy lower costs while at the same time enjoying same quality. This can allow the firm to become more competitive and improve its profitability besides becoming more efficient. Stakeholder Analysis Board of Directors is another stakeholder with high power but with low interest. Directors of the firm are the primary stakeholders with high interest and high power Government and other agencies may be stakeholders with high power but with low interest. Other Shareholders are another stakeholder group with high interest but low power. Decisions tak en Different strategic decisions taken are based on the fact that the firm intends to improve the profitability while at the same time improving efficiency. The decisions like retrenchment therefore are intended at ensuring that the costs remain within

Cosmetic Surgery Essay Example for Free

Cosmetic Surgery Essay Finally, cosmetic surgery can cause an addiction by society trends and Body Dimorphic Disorder. No one is perfect, and there is no â€Å"perfectism† either. People often complain about something on their body. They may think that their noses are shorter than others. Maybe, they think beautiful women should have big eyes. Sometimes, they may wish their lips to be a little bit thicker. However, the truth is people are a product of the love between their mom and dad. They should accept it as a present that their parents gave them. According to the American Society for Aesthetic Plastic Surgery (ASAPS), â€Å"The top five surgical cosmetic procedures in 2007 were: liposuction (456,828 procedures); breast augmentation (399,440 procedures); eyelid surgery (240,763 procedures); abdominoplasty (185,335 procedures); and breast reduction (153,087 procedures) (â€Å"Highlights of the ASAPS 2007 Statistics on Cosmetic Surgery†). Based on the fact, most surgeries were done because they felt unsatisfied about their body. They want to change their beauties by using the plastic surgery to be more attractive. Nowadays, our society is developing so fast that it creates a lot of ways to make people look more beautiful or even younger by using make-up products, skin care or doing exercise to maintain a good and healthy body. That is good enough to make them look better based on what they have. More importantly, even if they do a cosmetic surgery, it does still not guarantee the expected results: The potential exists that the surgery will not produce the â€Å"ideal† look the patient was seeking in spite of the surgeon’s best efforts. Cosmetic surgery is not an exact science, so potential patients need to keep in mind that there is no way to know what the final outcome will look like until the procedure has been performed and the recovery period has passed. (â€Å"The Pros And Cons Of Having  Cosmetic  Surgery†) Therefore, nothing is 100% perfect. Being yourself is accepting the truth, and finding other ways to improve what you are not happy about are the best choices a person should follow. Finally, there is still something more important than appearance. What would we think if a Miss Universe wins with a low education and without a good heart? Then, the â€Å"beauty† exists for a long time or stays in a short time and gone? In another case, in the Vietnamese-American community, everyone knows about Mr Don Chu, singer Ha Phuong’s husband. Although he is not good looking, he is an American billionaire who is managing a billion dollar fund at Wall Street. He is still confident about himself, and people still admire him. Cosmetic surgery requires a lot of time for recovery and has a lot of side effects. After surgery, patients cannot do normal activities, such as sports or heavy lifting. The healing time can take several months, even forever. It depends on health condition, age, and gender. Sometimes, scars are left on the body that cannot be treated by any other surgeries. Moreover, smoking and alcohol are banned within healing time. If not, it can extend healing time and make the case more complicated. Like other surgeries, plastic surgery may lead the death if the equipment or chemicals used in the surgery are not suitable to that patient, or by bleeding. Following the death of a former Miss Argentina after complications arising from plastic surgery, questions are being raised about the risks of  cosmetic  surgery. Solange Magnano, 37, died in hospital, after being transferred from a clinic where she underwent an elective surgery on her buttocks last Wednesday†¦ Magnano is reported to have died from a pulmonary embolism, a blockage of the blood supply to lungs. (â€Å"Models death highlights plastic surgery risks†) Besides, as with any kind of surgery, it may have side effects. For example, breast implants makes it hard to read a mammogram which helps the body to prevent breast cell cancer. More important, although liposuction is the most common cosmetic surgery, it is also the most dangerous one. â€Å"A report by Dr. Frederick Grazer of Penn State and Dr. Rudolph de Jong of Thomas Jefferson Medical college says that to date, â€Å"917 plastic surgeons reported 95 deaths in over 496,000 liposuction surgeries. If you do the math, that comes out to 19 deaths per 100,000 or 1 death in 5,224† (â€Å"Liposuction safety report†). One of the most dangerous side effects is fluid imbalance. During the procedure, the surgeon will put a large amount of fluid inside the body, and some is removed from fat tissue, which causes fluid imbalance. It may cause kidney dysfunctions, heart problem, and too much fluid in the lungs. Cosmetic surgery addiction is one of the most modern addictions, along with internet addiction, shopping addiction, and workholism. According to recent studies, 66 percent of all patients who have a single cosmetic surgery will return to have another. They return, not because the first surgery failed, but because it succeeded and now the patient wants more. Often, these plastic surgery addicts have a perfect image in mind that they want to attain, whether it is a celebrity that they are trying to emulate, or their ideal picture of what they should look like. (â€Å"Plastic Surgery Addiction†) Among the reasons that cause cosmetic surgery addiction are society trends and Body Dimorphic Disorder (BDD). Nowadays, with the development of media and advertising, people accept with cosmetic surgery more easily. The result is they accept it as a should-have behavior to be beautiful. For example, in their beauty definition, a beautiful girl should have long legs, big breasts, big eyes, or a high nose. Wanting those characteristics compel them to come to a surgeon. Moreover, people with BDD never feel happy even after thousands of cosmetic surgeries. They always see something wrong with their body that must be fixed. Michael Jackson and Jocelyn Wildestein are good examples of this kind of addiction. Michael Jackson had more than ten nose surgeries, according to People Magazine. He spent over two million dollars for surgery over his career to range from a â€Å"handsome† black singer to an â€Å"alien with a chimpanzee face† who never stopped to surprise people. Jocelyn Wildestein has a similar story to Michael’s. She spent almost four million dollars on cosmetic surgery over the years. With the nickname â€Å"Bride of Wildestein,† nobody can recognize her now compared with that beautiful woman she was in the 1970s. Plastic surgery is not a good solution for anybody. People should face the truth that they are not beautiful instead of hiding themselves by using plastic surgery. Doing surgery only reflects that they love untrue beauty. There are a lot of ways to improve what they have. For example, if they have a problem with belly fat, they can exercise with a strict nutrition system. If they want a higher nose or bigger eyes, they can put on makeup that still makes them look beautiful without asking a surgeon. Moreover, cosmetic surgery requires a very strict aftercare and causes many kinds of side effects. It takes several months for healing time without any smoking and alcohol during this period. Also no normal activities and heavy lifting are limited. Additionally, breast implants may reduce the ability to detect breast cancer, and liposuction can cause buildup of fluid in the lungs. Finally, cosmetic surgery is a new kind of addiction in this century. People can get addicted either by society trends or BDD, which makes them never feel happy with their body and never say â€Å"No† to cosmetic surgery. Works Cited â€Å"Choosing Cosmetic Surgery. † medicinenet. com. MedicineNet, Inc, n. d. Web. 19 Sept. 2011. Rollins, Gray. â€Å"The Pros And Cons Of Having  Cosmetic  Surgery. † articlecity. com. N. p. , 3 Mar 2006. Web. 9 Sept. 2011. â€Å"Quick Facts: Highlights of the ASAPS 2007 Statistics on Cosmetic Surgery. † surgery. org. The American Society for Aesthetic Plastic Surgery, n. d. Web. 19 Sept. 2011 Tutton, Mark. â€Å"Models death highlights plastic surgery risks. † cnn. com. CNN, 02 Dec. 2009. Web. 19 Sept. 2011. Venuto, Tom. â€Å"Liposuction Safety Report Advice From A Respected Fitn ess Coach. † burnthefact. com. Burn The Fat Enterprises, n. d. Web. 19 Sept. 2011. â€Å"Plastic Surgery Addiction: Is it dangerous? † articlesbase. com. ArticlesBase, 31 May 2010. Web. 19 Sept. 2011.