NationStates Jolt Archive


SUBMITTED: International Stock Exchange

Frisbeeteria
12-10-2006, 21:24
International Stock Exchange

A resolution to reduce barriers to free trade and commerce.

Category: Free Trade | Strength: Significant | Proposed by: Nullarni

Description: RECOGNIZING that the world has no standard Stock-exchange, and, therefore relies on liaisons and intermediaries in order to buy, sell and trade corporate stocks between national borders;

AND ALSO NOTING that there are currently over 100,000 separate stock exchanges and market exchanges, causing loss in efficiency* and economic stagnation on a global scale; inefficiency

THE GENERAL ASSEMBLY OF THE UNITED NATIONS shall create an International Stock Exchange by:

1) Combining all current national stock exchanges and other market exchanges under one UN regulated market.
Including but not limited to the following reasons:
a. Cutting cost. It is to use the existing national stock exchanges as an infrastructure. They will still exist, just not as individual stock exchanges.
b. Providing standardization. If each nation’s individual stock exchanges remained intact, there would be complications like selling of the same shares twice and other communication and booking nightmares like that.
c. minimalization of financial loss. The international stock exchange, would instantly become a monopoly, decimating the independent stock exchanges. So if you incorporate them into the international stock exchange, they become branches and not competitors of it.
d. Making the the change relatively easy in accordance to point number one.

2) Friendly and (or,) hostile take over and purchasing of all international liaison and intermediary corporations, (whose main source of profit is from purchasing, selling and trading stock between borders,) at the current market value.
(See previous): If there is only one stock exchange, the companies that make money off of buying and selling between stock exchanges would lose their business. Now loss of businesses in this caliber would be damaging to the economy and government purchase of these companies would allow the business owners to reinvest their money into other business ventures instead of having to undergo such a significant loss. And this would, in the long term be much better for the international economy.

3) Ensuring the tariff-free and tax-free purchase, sale, and trade of all stock, within its own market.
(See previous:) Even though there will only be one market, the trading of stocks will still be across borders. Therefore, they are subject to nations putting tariffs on the purchase and sales of the stock across their borders. So, it was included to make the point clear that this action would be considered unacceptable.

4) Providing easy, prompt, and accurate transfer and display of stock ownership and prices for public and private corporations, households, and individuals.
(See previous:) This will allow trading of stock to be more efficient, fluid, and accurate.

5) Provide a means of free currency exchange at each nations exchange to encourage purchase and sell of stock.
(See previous:) Free currency exchange will provide encouragement to purchase stock by allowing stock purchase in whatever national currency the entrepreneur wishes.

DOING SO will provide opportunities of economic growth to all nations within the UN, and encouraging better relations within the UN by causing economic inter-dependency. This will also make the global market far more efficient and cause the transfer of funds to be faster and more economical.
Modedit: The original thread on this topic became corrupted. If we manage to fix it, we'll merge this one back into it. Sorry, Nullarni.
Love and esterel
12-10-2006, 21:57
To resume our discussion, maybe we can try to explicit exactly what entity will be merged
stock exchanges?
stockbrokers or trading activities?
"clearing house"?

http://en.wikipedia.org/wiki/Clearing_(finance)

I'm not sure either, but your definition in 2) seems to apply to "international stockbrokers" or to companies/department who make profit from "arbitrage" related to stocks quoted on several stock exchanges
ie: a stock is quoted both in London and New-York, and the prices quoted are different, then the "arbitrageur" buy the stock in New-York to sell it few minutes later in London (or vice-versa)
http://en.wikipedia.org/wiki/Arbitrage
Allech-Atreus
12-10-2006, 22:20
We are very disappointed that the author did not take into consideration our objections to the first operative clause, requiring the coagulation of all national stock exchanges. This is highly contentious, and we will fight any attempts to infringe on our nation's economic rights.

Clause 2 is also unnecessary. Clause 3 makes no bloody sense at all.

We will not support this resolution at all, and again, we are very disappointed that our concerns voiced nearly a week ago were not even considered.

Landaman Pendankr dan Samda
Baron of Khaylamnian Samda
Ambassador to the UN
Cluichstan
13-10-2006, 13:09
I myself will be telegramming against this one should it reach quorum.

Sincerely,
Bala
Cluichstani Deputy Ambassador to the UN
New Hamilton
13-10-2006, 17:46
I like it.
Ice Hockey Players
13-10-2006, 18:00
Great idea...were you reading my mind the other day? I thought of doing something like this, but I will get behind this proposal.
Love and esterel
14-10-2006, 18:29
We strongly oppose this proposal.

First, the author was unable in the previous deleted discussion to explicit what mean:

international liaison and intermediary corporations, (whose main source of profit is from purchasing, selling and trading stock between borders,)

Second, we oppose the creation of a "monopoly" in a competitive business activity which is mainly private and which as nothing to do with the notion of "public service".

Most stock exchanges and clearing houses are private business, there is no reason to merge all of them. (there are several in europe, several in the US alone)

Does the Author plan the UN to merge, once again, in 5 years for example, all the new companies which will be cearted in this business area, and do it again in 10 years and so on?