Thread: Here's The Key To The Rv...read In...

12 Jun 2007 14:18:00
Investment
Banker voices reservation over investment law
Baghdad (NINA)- Director General of the state-owned Rafidain Bank has expressed his reservation over the bill of investment, which had been presented to the parliament for approval. Mr. Abdul-Hussein Al-Yasiri said Tuesday, “We back up the proposed investment law, which provides much potential for
>> More >>
http://www.ninanews.com/

WHAT THEY ARE REFERRING TO IS THIS DRAFT BILL:

MENAFN) A representative of the General Institution of the Iraqi Securities Market said that during discussions the entity has re-elected a former official of the organization as Chairman of the Trustees Board and that the country's draft capital market bill is expected to be finalized through these measures, Iraq Directory reported.
He further stated that the issuance of Iraq's market bill the will stimulate stock market investment activity and will in return meet the needs of several Iraqi investors.
It is noteworthy that the most significant achievements of the establishment include opening up to investors, obtaining modern head offices, achievement of preparations for electronic trading, and permitting non-Iraqis to join the organization.

NOTE: IF PRESENTED TO PARLIAMENT TODAY, THEN IT NEEDS 3 READINGS, THEN TO THE PRESIDENT'S COUNCIL TO RATIFY AND THEN PUBLISHED IN THE Gazzete...

LET'S TRY TO DO THE MATH!

How many days will it take to get three readings?

Can they do it one day after another day or does it have to wait for a week between readings...

THIS NEW DRAFT LAW IS the logistics of how it will be done NOT, that they (Foreigners) are allowed...that is the diference in this draft law verses the bill in March that allowed foreigners.

Draft Capital Market Reorganization Bill
Tabatabai re-elected Chairman of the Stock Exchange Trustees Board
http://www.iraqdirectory.com/DisplayNews.aspx?id=3834
Iraqi government to review draft capital market bill
Iraqi government to review draft capital market bill | Iraq Updates
Iraqi government to review draft capital market bill
MENAFN - 28/05/2007
MENAFN - Middle East North Africa . Financial Network News: Iraqi government to review draft capital market bill

How many days will it take to get three readings?

Optimistic view 2 weeks.

Pessimistic view whenever they get a quorum.

THIS IS the logistics of how it will be done NOT, that they are allowed...that is the diference in this draft law verses the bill in March that allowed foreigners.

I'm a little lost on the above quote. Can you elaborate.

And thanks Fred for all your research.

[quote=stargate-sg13;215767]

Optimistic view 2 weeks.

Pessimistic view whenever they get a quorum.
I'm a little lost on the above quote. Can you elaborate.
And thanks Fred for all your research.
[/quote]


The difference in this law than the law in March (that everyone has referred to) is that the March Law made it legal for non-iraqis to take part in the stock market...this law among other measures spells out "HOW" it will be done or otherwise it's the mechanics of how they will go about doing this.

The new draft law covers a wide range of other investment avenues other than allowing foreigners into the stock market...as you can see from the article above...they have been talking about it for several weeks now... as per the article noted above.

Originally Posted by fredgwest1999

12 Jun 2007 14:18:00
Investment
Banker voices reservation over investment law
Baghdad (NINA)- Director General of the state-owned Rafidain Bank has expressed his reservation over the bill of investment, which had been presented to the parliament for approval. Mr. Abdul-Hussein Al-Yasiri said Tuesday, “We back up the proposed investment law, which provides much potential for
>> More >>
http://www.ninanews.com/

WHAT THEY ARE REFERRING TO IS THIS DRAFT BILL:

MENAFN) A representative of the General Institution of the Iraqi Securities Market said that during discussions the entity has re-elected a former official of the organization as Chairman of the Trustees Board and that the country's draft capital market bill is expected to be finalized through these measures, Iraq Directory reported.
He further stated that the issuance of Iraq's market bill the will stimulate stock market investment activity and will in return meet the needs of several Iraqi investors.
It is noteworthy that the most significant achievements of the establishment include opening up to investors, obtaining modern head offices, achievement of preparations for electronic trading, and permitting non-Iraqis to join the organization.

NOTE: IF PRESENTED TO PARLIAMENT TODAY, THEN IT NEEDS 3 READING, THEN TO THE PRESIDENT'S COUNCIL TO RATIFY AND THEN PUBLISHED IN THE GAZATE...

LET'S TRY TO DO THE MATH!

How many days will it take to get three readings?

Can they do it one day after another day or does it have to wait for a week between readings...

THIS IS the logistics of how it will be done NOT, that they are allowed...that is the diference in this draft law verses the bill in March that allowed foreigners.

Generally in the past there has been a short break, (2 days to a week ) between readings for certain laws/bills. Recently meetings are on going almost daily, and for extended periods of time. 6-12 hrs. They were given a mandate to complete 4 laws/bills before mid May. As we can see, they never made it. Gee, who would of thunk it !!! Something, or someone is pushing them hard to ratify, so at this point no one can answer your question as to how long. There rules have changed and only they can answer that one.

Gloribee

HERE IS AN INTERESTING ARTICLE - AS KOREA KEEPS BEING USED AS A MODEL FOR IRAQI'S FUTURE DEVELOPMENT - HERE IS THEIR DRAFT INVESTIMENT LAW REVIEWED AND IT MAY OFFER A CLUE AS TO WHAT IS COMING WITH IRAQ...


05-09-2007 19:11
Capital Market Bill Needs Speedy Passage

Park Yong-man, vice chairman of the Korea Securities Dealers Association (KSDA), says that the Capital Market Consolidation Act needs parliamentary approval at the earliest time to help domestic securities firms become globally-competitive investment banks. / Korea Times Photo by Shim Hyun-chul
Brokerage Companies Seek Clearing Service for Customers

By Lee Hyo-sik
Staff Reporter

The securities industry is waiting for the National Assembly to pass a bill aimed to consolidate the nation’s capital market as soon as possible to help local brokerage houses grow into internationally competitive investment banks.

Park Yong-man, vice chairman of the Korea Securities Dealers Association (KSDA), also said the ongoing conflict over whether to grant securities firms to provide basic banking services such as payment settlements should be resolved for the sake of consumers, saying that allowing brokers to provide these services will increase customer benefits.

``Considering the presidential election in December and other political events, the Assembly should not delay the passage of the Capital Market Consolidation Act (CMCA) and must pass the bill in the first half of the year for implementation next year,’’ Park stressed in an interview with The Korea Times.

He said the prompt passage of the bill is a must to keep Korea on par with rival countries in an increasingly crowded race to become a global financial hub, adding his organization will play an important role in advancing the country’s capital market and strengthening the competitiveness of the securities industry.

The KSDA acts as a self-regulatory organization that promotes fair trade and investor protection, and strengthens public confidence in the securities market, having 33 regular members and 20 special members, 39 of whom are domestic and 14 foreign.

The capital market integration bill seeks the consolidation of 11 rules and regulations in the capital market by function, not by different types of financial entities.

It will make it easier for the integration of securities firms, asset management firms and futures’ firms to nurture investment banks with international competitiveness that can effectively compete with the likes of Goldman Sachs and Merrill Lynch on global markets. The bill is expected to get parliamentary approval in June.

Analysts say securities firms will likely be the biggest beneficiaries of the incoming capital market bill as it will offer an opportunity for them to transform into investment banks.

The act will also adopt the negative system for product development under which all investment products are allowed unless specifically prohibited. The change will enable market players to develop and introduce a lot of advanced investment products.

However, differences among various interest groups on payment settlement and cash transaction services at brokerage houses has kept the bill from being passed by the Assembly even though there is a consensus in the financial industry that barriers between diverse financial companies should be demolished for local players to grow and survive global competition.

Consumer Benefits

``Whether to allow brokers to offer basic banking services or not should not become a tug of war between banks and securities firms. The issue should be looked at from the consumers’ standpoint. I think consumers will benefit more when brokerage houses provide payment settlements, which will enable accountholders to pay utilities fees, and credit card and other bills through their securities accounts,’’ Park said.

He said as a result, customers will enjoy lower financial transaction fees as well as high quality customer services as the competition to attract payment accounts among financial institutions intensifies.

But the central bank has opposed allowing brokerage houses to provide cash transaction services, saying that it could undermine the soundness of the payment settlement system, with some lawmakers and professors campaigning against the passage of the bill.

Bank of Korea (BOK) Governor Lee Seong-tae recently said the bill runs counter to the principle that financial firms should compete on a level playing field, saying it discriminates against banks.

Lee also said allowing securities firms to offer payment settlements could create risk to the country’s payment system and could cause a plunge in the stock market and a massive withdrawal of money from accounts.

But Park said there would be no such risks because the industry would prepare a range of safety measures to prevent such scenarios.

``Even savings banks and credit cooperatives, which have weaker financial payment ability than brokerage firms, provide limited payment settlement services. I think it would be ideal to apply the similar system to the securities companies,’’ he said.

Analysts say banks oppose the measure because it will negatively affect them, as customers, who have kept money in ordinary bank accounts de****e their low interest rate, will switch to securities firms once they provide the same services.

New Sources of Income

To grow into leading investment banks and compete with foreign rivals at home and abroad, Park said local securities companies should diversify their income sources, making greater efforts to generate earnings from asset management, and merger and acquisition (M&A) consulting services.

``The current profit structure for domestic brokerages is extremely vulnerable to fluctuations in the stock markets as their income largely depends on brokerage fees. That is why they need to diversify their earnings sources into investment banking and other sophisticated financial operations,’’ he said.

Korean brokers generated about 62 percent of their net income from commission fees last year, with only 14 percent coming from investment banking business. But U.S. securities firms rely on about 66 percent of their net income coming from investment banking, including investment product management and financial advisory services.

Local brokers cannot compete with foreign rivals in size as well. The combined equity capital of Korea's six largest securities companies, including Samsung Securities, amounts to only about 1.7 trillion won at the end of last year, compared with Goldman Sachs’ 28 trillion won.

Skilled Manpower

Park also said local securities companies should nurture skilled human resources in the financial services area, who can develop derivatives and more sophisticated new financial products.

``Compared to Hong Kong, Singapore and other rival countries, Korea lacks in skilled financial workers. If the current trend continues, the industry will be short of some 10,000 financial professionals in 10 years. The government and the industry should join hands together to educate and produce talented financial manpower through a long-term blue print,’’ he said.

As part of such a effort, the KSDA is running an array of training programs all year round, including a master of business administration (MBA) course, to train professionals in diverse investment banking services.

It has also signed a number of memorandums of understanding (MOUs) with foreign financial education institutions to jointly operate internationally competitive education programs.

``Now is also time for domestic securities companies to make inroads into foreign markets to develop new earnings sources and become globally competitive firms, as the domestic sector has become increasingly saturated,’’ Park said.

He said his organization has increased cooperation and exchanges with regulators and the securities industry in China, India and other emerging Asian economies to help local brokers explore business opportunities there.

``Last year, we invited about 30 people from the securities industries in India and several Southeast Asian countries as part of a training program to introduce Korea’s capital market and increase the level of human exchange. Through such a program, we will help Korean brokerage firms advance into emerging markets and grow into global players,’’ Park concluded.

[email protected]
Capital Market Bill Needs Speedy Passage(The Korea Times)

THIS TIES IN TO THE ABOVE ABOUT THE SYSTEM BEING UP ALREADY BUT, THEY ARE AWAITING SOMETHING...LIKE THE PASSAGE OF THE ABOVE DRAFT LAW....

Executive Director of the Iraqi exchange said that the Board of Governors was successful in obtaining financial aid from donor countries.

More than an estimated $7 million was allocated for development of trading mechanisms, moving from manual to electronic trading. Implementation of the electronic trading system "Horizon" and the central deposit system "Equator" was by the Swedish company O.M.X., already responsible for automation projects in 30 Arab and international exchanges.

Abdul Salam

explained that setting up the internal networks in the Market had finished

training in their application will be thorough, including the President and members of "The Securities Body" plus the Board of Governors, as well as all associates.

He stated that the plan envisages a direct link between the Iraqi Market of Securities and the Body of Securities and with transfer agencies like companies, governmental and private banks. As well, the network will link to provinces which open electronic exchange centers, first tying them to Baghdad's center and from there linking globally.

Abdul Salam pointed out that this development, which impacts the performance of the market at all levels, is expected to provide many advantages, notably: increasing the number of weekly sessions, the number of contracts executed per session, and the rate of circulation of shares.

This will fulfill the goals of maintaining high share liquidity to facilitate investment, plus efficient and safe storage and recording of shares in the deposit centers permitting rapid, accurate, certificate issuance before and after trades.

The Executive Director of the Iraqi exchange concluded that the Market had satisfied Investment Law No. 13 of 2006's requirements as instructed by a committee from the Board of Governors, including with regard to the involvement of non-Iraqis in the market.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3933

CHAPTER ONE
Definitions
ARTICLE (1)
In the application of the provisions of this Law, the following terms and phrases shall have the following meanings assigned for each of them unless the context requires otherwise:
• The Ministry: The Ministry of Finance, Economy, and Commerce
• The Minister: The Minister of Finance, Economy, and Commerce
• The Foreign Investors: Non-Qatari nationals, Natural or Juridical, who are directly investing their capital in one of the projects authorised by the State according to the provisions of this Law.
• The Invested Foreign Capital: Cash money, rights in term, or other rights having monetary value in the State of Qatar, invested by foreign investors including:
1. Cash transferred into the State through banks and other licensed financial institutions.
2. Imported material assets for the purpose of investment according to the provisions of this Law.
3. Profits, revenues, and reserves resulting from investing the foreign capital in a project if the capital of this project was increased or if they were invested in one of the authorised projects according to the provisions of this Law.

Originally Posted by fredgwest1999

THIS TIES IN TO THE ABOVE ABOUT THE SYSTEM BEING UP ALREADY BUT, THEY ARE AWAITING SOMETHING...LIKE THE PASSAGE OF THE ABOVE DRAFT LAW....

Executive Director of the Iraqi exchange said that the Board of Governors was successful in obtaining financial aid from donor countries.

More than an estimated $7 million was allocated for development of trading mechanisms, moving from manual to electronic trading. Implementation of the electronic trading system "Horizon" and the central deposit system "Equator" was by the Swedish company O.M.X., already responsible for automation projects in 30 Arab and international exchanges.

Abdul Salam

explained that setting up the internal networks in the Market had finished

training in their application will be thorough, including the President and members of "The Securities Body" plus the Board of Governors, as well as all associates.

He stated that the plan envisages a direct link between the Iraqi Market of Securities and the Body of Securities and with transfer agencies like companies, governmental and private banks. As well, the network will link to provinces which open electronic exchange centers, first tying them to Baghdad's center and from there linking globally.

Abdul Salam pointed out that this development, which impacts the performance of the market at all levels, is expected to provide many advantages, notably: increasing the number of weekly sessions, the number of contracts executed per session, and the rate of circulation of shares.

This will fulfill the goals of maintaining high share liquidity to facilitate investment, plus efficient and safe storage and recording of shares in the deposit centers permitting rapid, accurate, certificate issuance before and after trades.

The Executive Director of the Iraqi exchange concluded that the Market had satisfied Investment Law No. 13 of 2006's requirements as instructed by a committee from the Board of Governors, including with regard to the involvement of non-Iraqis in the market.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3933

GREAT Read. Thanks fredgwest1999. I like the sound of that alot

Keep those great articles a comin

Anyone that knows neno, knows I am a firm believer of when the ISX is Ready & Opened, that the Sky is and will be the Limit. I also know that the HCL is and will play a Major roll too, exspecially for the Iraqi's. We have the Pension listed as Official. That is a Great sign of a rv for the retiries. As every should notice, you can not view the details of it. And if they do in deed go by their on Constitution written, Article 73 should reveal it soon. We shall see.

Originally Posted by neno

Anyone that knows neno, knows I am a firm believer of when the ISX is Ready & Opened, that the Sky is and will be the Limit. I also know that the HCL is and will play a Major roll too, exspecially for the Iraqi's. We have the Pension listed as Official. That is a Great sign of a rv for the retiries. As every should notice, you can not view the details of it. And if they do in deed go by their on Constitution written, Article 73 should reveal it soon. We shall see.

I can't wait!!!!We shall see soon enough!!