Ho Chi Minh Stock Exchange (HOSE, HoSE, or HSX), formerly the HCMC Securities Trading Center (HoSTC), is a stock exchange in Ho Chi Minh City, Vietnam. It was established in 1998 under Decision No. 127/1998/QD-TTg of the Prime Minister of Vietnam. HCM Securities Trading Center officially opened on July 20, 2000, and had its first trading session on July 28, 2000, with two listed companies and six security company members.
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According to Decision No. 599/2007/QD-TTg of the Prime Minister in 2007, HCM Securities Trading Center was transformed into HCM Stock Exchange, with initial charter capital of VND 1,000 billion and the Ministry of Finance as the owner representing the agency. The charter capital was adjusted to VND 2,000 billion in 2015.
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The Prime Minister issued Decision No. 37/2020/QD-TTg on December 23, 2020, establishing of the Vietnam Stock Exchange. Accordingly, The Hanoi Stock Exchange and Ho Chi Minh Stock Exchange became subsidiaries with 100% of charter capital owned by the Vietnam Stock Exchange.
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Vietnam Stock Exchange was established as a one-member limited liability company to organize a security trading market. Its VND 3,000 billion charter capital is held by the State. It has bank accounts with the State Treasury and domestic commercial banks that do business in Vietnamese đồng and foreign currencies. By national law, the exchange is tasked with financial regimes, statistical reporting, accounting, and auditing.
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The following are the duties and powers of the house according to the organization and operation charter of the Ho Chi Minh City Stock Exchange issued together with Decision No. 07/QD-HDTV dated July 9, 2021:
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Organize and operate the stock trading market, a securities auction system, fund certificates, covered warrants, and other securities trading markets
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Suspend trading if there are abnormal fluctuations in price and trading volume to protect the rights, interests, safety, and stability of investors
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Approve, change, or cancel a listing
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Register securities trading
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Supervise the information disclosure by listing companies
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Provide the technology infrastructure for the stock market
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Inspect and handle violations against listing companies and those registered for trading
Currently, Ho Chi Minh Stock Exchange is trading securities products such as stocks, closed fund certificates, ETF certificates, and covered warrants.
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At the end of June 30, 2021, it had 488 listed trading securities products, including 385 stocks, two closed fund certificates, seven ETF certificates, 65 covered warrants, and 29 bonds. It included more than 103,88 billion listed stocks, and the value of listed capital was more than 5,28 million billion VND.
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VNIndex was the first index of the Vietnamese stock market. It compares the current values of market capital to the base value of market capital. The value of market capital is calculated by the index formula which is adjusted in scenarios such as new listings, delistings, and changes in listing capital. VNIndex calculating formula: VN Index = (Current market value / Base market value) x 100
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The HOSE Index was launched in 2014. It allows HOSE's listing stocks to reach requirements on eligibility, free-floating rate, and liquidity. HOSE Index accounts for more than 90% trading value and more than 80% capital value of listing Vietnamese stocks in HOSE.
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Structure of HOSE Index:
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VNAllshare is a capitalization index consisting of stocks listed on HOSE that meet the screening requirements for eligibility, freely transferable ratio, and liquidity.
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VN30 is a capitalization index designed to measure the growth of the top thirty companies in terms of market capitalization and liquidity in VNAllshare.
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VNMidcap is a capitalization index that measures the growth of seventy medium-sized companies in VNAllshare.
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VN100: is a market capitalization index combining component stocks of VN30 and VNMidcap.
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VNSmallcap is a capitalization index designed to measure the growth of small-sized companies in VNAllshare.
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VNAllshare Sector Indices include industry indices with VNAllshare's component stocks, classified according to the Global Industry Classification Standard (GICS®).
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VNSI is a price index calculated using the free-float adjusted market capitalization method with the composition of the listed companies with the best sustainable development scores. It has a real-time calculation frequency of five seconds.
In November 2019, HOSE introduced a modified index to adapt to the investment needs of domestic fund companies. Specifically, the Vietnam Leading Financial Index (VNFIN LEAD) Vietnam Financial Select Sector Index (VNFINSELECT), and Vietnam Diamond Index (VN DIAMOND).
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The Ho Chi Minh Stock Exchange trades Monday through Friday, except on public holidays. The trading limit for stocks and fund certificates is +/-7%; this does not apply to bonds. On the first trading day of a new listing stock, the trading limit is +/-20%.
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Approved for listing by the general meeting of shareholders and trading on the Upcom trading system for at least two years, except when shares have been offered to the public.
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Financial situation and business activities
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ROE of the previous year at least 5%, two consecutive years of profit, no debt overdue for more than one year, no accumulated loss
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Shareholders structure
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At least 15% of the voting shares are held by at least 100 non-major shareholders If the charter capital of the organization is VND 1,000 billion or more, the minimum ratio is 10% of the voting shares.
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Shares holding requirements
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Members of the board, control board, board of directors, chief accountant, CFO, and equivalent managerial positions elected by the general meeting of shareholders or appointed by the board of directors and major shareholders. If related to the above, subjects must commit to holding 100% of the shares owned within six months from the first trading date on the Stock Exchange and 50% of these shares within the next six months, excluding the number of state-owned shares held by the above individuals
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Requirements on compliance with the Securities Law
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The company and its legal representative shall not be handled for violations within two years due to the performance of prohibited acts in securities and securities market activities.
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Consulting securities company
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Has a securities company that advises on the application for listing registration unless the organization registering for listing is a securities company.
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^Official Letter No. 244/UBCK-PTTT dated January 22, 2021, of the State Securities Commission on guiding the implementation of the Securities Law in 2019
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The Stock Exchange of Thailand (Thai: ตลาดหลักทรัพย์แห่งประเทศไทย; abbr.SET) is the only stock exchange in Thailand. Founded on 30 April 1975, it is ASEAN's 3rd largest after Indonesia Stock Exchange and Singapore Exchange by market capitalization at US$489.95 billion (both SET and mai) as of November 2023.[1] From 2015 to June 2020, it was the biggest IPO market in Southeast Asia in terms of accumulated raised fund at US$17.8 billion (THB 598.0147 billion). It is also the region's most active bourse for 10 consecutive years with daily trading turnover normally exceeding US$2 billion.
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In recent years, the number of market participants has risen sharply:[2] trading accounts has increased almost 10 times from 2008 to 2022.[3]
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SET index is the oldest and the most cited equity index in Thailand. It made intraday all-time high at 1852.51 on 27 February 2018, surpassing the previous high of 1789.16 on 5 January 1994.
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SET has stricter price regulations than some other exchanges, normally disallowing stock prices to rise or drop more than 30% in a day.[4]
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The exchange operates 2 markets for listed companies: SET and mai (Market for Alternative Investment) the latter of which is for small and medium enterprises.
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There are 840 listed companies as of 2 January 2024: 627 companies on the main exchange and 213 on mai.[5]
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Apart from common stocks, investors can trade other types of securities including warrant, derivative warrant (DW), depositary receipt (DR), exchange-traded fund (ETF), property fund (PF)/ real estate investment trust (REIT) and infrastructure fund. The exchange also runs a separate market for derivatives.
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As of August 2021, the Thai bourse attracted investors from 124 countries, up from 116 the
+previous year. The top ten nationalities' holdings of Thai stocks amounted to US$147.5 billion (THB 4.77 trillion),
+accounting for 93.7 percent of all foreign stock ownership. The rank of the first seven nationalities
+remained unchanged from the previous year: the UK, Singapore, Hong Kong, Switzerland, the
+US, Japan and Mauritius.
+
There has been growing interest in overseas investment among domestic investors. The US, China (including Hong Kong) and Vietnam are among the most popular, followed by Europe and India. Currently, the exchange has no foreign listing but ones can invest overseas by buying DR (depository receipt) which has been launched since 2018 as well as ETF.
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To attract foreign investors and encourage cross-investment within ASEAN, exchanges in the region co-operate to facilitate investing in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.[6] Other ASEAN countries namely Cambodia, Laos and Myanmar also have exchanges with the exception of Brunei.
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A precursor Bangkok Stock Exchange was established in July 1962 as a private entity. It finally ceased operations in the early 1970s due to a lack of government support and limited interest and understanding of the equity market among populace.[7]
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In 1972, the Thai government took a step in creating a capital market. The changes extended government control and regulation over the operations of finance and securities companies, which until then had operated fairly freely. Then in May 1974, long-awaited legislation for the incorporation of SET was enacted to provide securities trading in order to promote savings and mobilize domestic capital. This was followed by revisions to the Revenue Code at the end of the year, allowing the investment of savings in the capital market. By 1975, the basic legislative framework was in place and on 30 April 1975, the Securities Exchange of Thailand officially started trading. On 1 January 1991 the name was formally changed to the Stock Exchange of Thailand (SET).[8]
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Thailand Futures Exchange (TFEX), a subsidiary of the Stock Exchange of Thailand (SET), was established on 17 May 2004 as a derivatives exchange. On 28 April 2006 SET50 Index Futures was launched as the first product. Single Stock Futures was first launched on 24 November 2008. Derivative warrant was launched on 9 July 2009.[9][10]
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In 2008, the Securities and Exchange Commission, Thailand together with the central bank allowed domestic individual investors to invest abroad directly for the first time through a Thai brokerage. Previously, only institutions could invest overseas.[11]
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SET began fully computerized trading in April 1991.
+The system allows brokers to advertise their buy or sell interests by announcing bid or offer prices. Members may then deal directly with each other, either on behalf of their clients or for themselves. Prices may be adjusted during the negotiation; hence, the effective executed price may not be the same as that advertised and may not follow the price spread rules. After concluding negotiations, dealers must send details of the results for recording purposes.[12]
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Trading through mobile device began in 2010 with the launch of settrade streaming for iPhone according to SET's 2010 annual report (page 36).[10]
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There is no index which combines both SET and mai. Some original mai companies have been listed in SET.
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In the first day of trading, there were 8 listed companies and 5 of them still remain: BBL, BJC, DUSIT, SCC, and TCAP.
+
There are 12 DR as of 15 March 2023:
+1. E1VFVN3001 which tracks VN30 Index
+2. BABA80
+3. FUEVFVND01
+4. TENCENT80
+5. NDX100 which tracks Nasdaq-100
+6. STAR5001
+7. XIAOMI80
+8. BYDCOM80
+9. AAPL80X
+10.TSLA80X
+11.CNTECH01
+12.PINGAN80
+
CHINA is an ETF which tracks CSI 300 Index. So far it is the only ETF which invests overseas.
+
Since 2013, the Thai economy's slow growth due to factors such as an aging population and technological disruptions has adversely affected the benchmark SET index's performance. Although the number of listings has significantly increased, a large proportion of these have been from older companies or spin-offs of existing listed companies. The market has also seen several mergers and acquisitions. While new companies have been listed, they tend to be small and have little impact on the SET index.[16]
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CRRC Corporation Limited (known as CRRC) is a Chinese state-owned and publicly traded rolling stock manufacturer. It is the world's largest rolling stock manufacturer in terms of revenue, eclipsing its major competitors of Alstom and Siemens.[6][7][8]
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In late 2014, CNR Group and CSR Group agreed to merge, subject to approval by the Chinese state. Under the agreement, CNR Group would formally acquire CSR Group (but CSR Corporation Limited would acquire China CNR Corporation Limited), and the combined business would be renamed CRRC Group and CRRC Corporation Limited respectively.[11][12] The rationales given for the merger were increased efficiency, and the ability to better compete internationally.[13]
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The merger came into effect 1 June 2015, with each CNR share exchanged for 1.1 CSR shares - the combined company became the largest railway rolling stock manufacturer in the world, and held over 90% of the Chinese market. Total employment of the combine was 175,700 persons, and the share capital was valued at CN¥27.289 billion.[1]
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After the re-merger, CRRC started expanding overseas; after being awarded a 284 vehicle order (later expanded to 404 vehicles) for metro cars for Massachusetts Bay Transportation Authority's Red and Orange lines with a US$556.6 million bid in October 2014, the company started constructing a 13,900 square metres (150,000 sq ft) assembly plant in Springfield, Massachusetts, at a former Westinghouse plant[14] beginning in September 2015.[15] Manufacturing work began in April 2018.[16]
+
In mid-2015, production began at a rolling stock plant in Batu Gajah, Perak, Malaysia, a satellite of CRRC Zhuzhou Locomotive, and the corporation's first plant outside China.[17] Additionally the former CSR had acquired Emprendimientos Ferroviarios in Argentina in 2014 and announced in 2016 that it would begin maintenance and production of new rolling stock for export in the country.[18][19] Argentina had previously purchased a variety of rolling stock from the company over the years, including 704 EMU cars, 81 DMU cars, 44 passenger locomotives, 360 carriages, 107 freight locomotives and 3,500 freight cars, in addition to the 150 200 Series cars for the Subte.[20][19][21] In 2017, the Argentine government purchased an additional 200 EMUs from CRRC.[22]
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In mid-2015, CRRC formed a freight wagon joint venture, Vertex Railcar, as a minority partner with Hong Kong-based private equity firm Majestic Legend Holdings to establish production in Wilmington, North Carolina at a former Terex facility.[23] CRRC provided railcar designs and some components, and Majestic Legend invested US$6 million;[24] the plant was operational by the beginning of 2016.[25] In August 2016, at the request of a letter from 55 US House of Representatives members alleging that Vertex was being unfairly subsidized by the Chinese government, the United States Department of the Treasury began an investigation into whether the Chinese investment in Vertex constituted a national security risk.[26] 42 US Senators sent a similar letter in September, conveying concerns about the state-owned enterprises behind Vertex.[27] The Treasury Department released its report in December and found that the joint ownership was not a risk.[26]
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In late 2015, Yu Weiping, one of the vice-president of the company, stated the company planned to double overseas sales over five years, with North American passenger rail being one target.[28] Interim six month financial results for the new company showed an increase in overseas revenue of over 60%. Half year revenue was CN¥91.8 billion, with a gross profit of CN¥19.5 billion. Non rail revenue (car equipment, generators) was CN¥20.94 billion.[29]
+
In March 2016, CRRC Qingdao Sifang was awarded a contract to build 400 7000-series cars for the Chicago Transit Authority (CTA), with an option for another 446 cars. The cost of the contract was US$632 million up to US$1.3 billion with options; as a consequence CRRC began development of a US$40 million assembly factory in Chicago, designed by Itasca, IL-based Cornerstone Architects Ltd.[30][31]
+
In March 2017, Quincy, Massachusetts based CRRC MA was awarded a contract by SEPTA to construct 45 bi-level rail cars with the option for 10 additional cars for delivery in October 2019. The SEPTA order will be built at the Springfield plant[32] and car shell manufactured from the Tangshan plant.[33] CRRC was selected over Hyundai Rotem and Bombardier, which also bid on the bi-level contract and had each produced equipment for SEPTA in the past.[34] Later that month, CRRC was also awarded a contract to build 64 HR4000 cars for the Los Angeles County Metropolitan Transportation Authority (LACMTA) that will replace existing vehicles on the agency's Red and Purple lines, with an option for another 218 cars.[35] The LACMTA order will result in a 41,218 square feet (3,829.3 m2) assembly plant (installing propulsion, HVAC and other general assembly) being built in LA.[32]
+
Delivery of the MBTA Red and Orange Line cars was severely delayed, and problems with electrical shorts, loose brake bolts, and derailments led to several removals of the new trains from service. The company blamed supply chain issues caused by the COVID-19 pandemic, but an MBTA official told CRRC MA management it "has completely abandoned its core responsibilities and commitment to lead, monitor and support quality management", and cited 16 specific failure areas.[36]
+Workers at the site reported problems with quality tracking, trains being advanced through the assembly process despite missing parts, assembly occurring in the wrong order, and being left with nothing to do for months at a time because a disorderly invoice system failed to reliably pay suppliers for parts.[37]
+
In June 2016 a predecessor company of CRRC, CSR Corporation Limited, was implicated in allegations of bribery to obtain a 2012 US$6 billion tender to deliver 600 locomotives to the state owned Passenger Rail Agency of South Africa (PRASA).[38][39] It was reported that the future South African Public Protector Busisiwe Mkhwebane was implicated in the deal when she worked as Counselor Immigration and Civic Services in South Africa's embassy in China.[40][41] By 2020 it was reported that funds allocated to pay for an adjusted contract to deliver the locomotives produced by CSR Corporation, now reformed into CRRC, had been frozen by the South African Revenue Service due to possible instances of corruption paid to associates of the Gupta family.[42]
+
As of 31 December 2016[update], CRRC was majority owned by CRRC Group directly and indirectly (via CRRC Financial and Securities Investment, Chinese: 中车金证投资 for 1.64%[49]) for 55.91% of total share capital (all in A share).[3]: 85 Other state-owned entities of the central government, such as China Securities Finance (2.87%) and Central Huijin Investment (1.12%), also owned a minority stake.[3]: 83 In terms of different shares, BlackRock owned 6.13% H shares in long position (267,971,072 number of shares), or 0.98% in terms of total share capital.[3]: 85 Himalaya Capital Investors, a Seattle based mutual fund also owned about 6.13% H shares in long position (267,904,000 number of shares).[50][3]: 85 Other shareholders each owned less than 1% shares in terms of total share capital.[3]: 83–85
+
On 1st March 2024, CRRC 40% with Grupo Comporte 60% entered at Trens Intercidades Proposal with the possibility to deliver 22 inter-city trains, to be used from Luz Station to Campinas since supposidelly 2030.[55]
+
The company is represented on three continents (Europe, North America and the Asia-Pacific region) and oversees property financing in more than 20 countries. It has been listed on the German stock exchange since 2002.
+
The company's history dates back to two institutions: Preußische Landespfandbriefanstalt (founded in 1922) and Deutsche Wohnstättenbank AG (founded in 1923), both of which were based in Berlin. Deutsche Wohnstättenbank AG was renamed Deutsche Bau- und Bodenbank in 1926.
+
In the years of the Nazi rule, the bank grew rapidly thanks to the bridging loan business which mainly targeted the funding of settlement and housing construction. These sectors boomed following the massive increase of the armament industry that demanded accommodation for their workers, often designed as National Socialist ideal settlements.[8]: 39 The prospect of business opportunities due to the boom of the armament industry also fostered the bank's department for industrial loans. Millions of Reichsmark were granted to companies like Ruhrgas AG, Vereinigte Stahlwerke AG or Daimler-Benz AG.[8]: 41 At the time of the Nazi seizure of power in 1933, already 63 of 267 employees belonged to the Nazi Party.[8]: 50 While chairman of the supervisory board Otto Kämper was a member as well and publicly praised the success of the government in the field of housing, democrats such as Arnold Knoblauch or Eberhard Wildermuth, who was in contact with conspirators of the 20 July plot, were still holding a seat on the supervisory board until World War II.[8]: 48
+
Preußische Landespfandbriefanstalt was given the name Deutsche Pfandbriefanstalt in 1954. In 1979, Deutsche Pfandbriefanstalt acquired a majority interest in Deutsche Bau- und Bodenbank. It traded as public limited company under the name Deutsche Pfandbrief- und Hypothekenbank AG from 1989, before going public in 1991 and opening its first foreign branch in Amsterdam in the same year.
+
In 1999, Deutsche Pfandbrief- und Hypothekenbank AG was renamed DePfa Deutsche Pfandbrief Bank AG and transferred all property activities to Deutsche Bau- und Bodenbank, which was also given the name DePfa Bank AG BauBoden at this time. In 2002, the bank was divided into Aareal Bank AG (formerly Deutsche Bau- und Bodenbank), a property finance bank with headquarters in Wiesbaden, and DePfa BANK plc, a public finance bank based in Dublin. Since 2006, the company has focused on the Commercial Property Financing and Consulting/Services segments.[9]
+
Hermann J. Merkens has been chairman of the management board of the company since 2015. The supervisory board members are elected for a period of five years each. The current term of Marija Korsch as chairman of the supervisory board began in 2013.[10]
+
Specialist property management service provider; real estate asset management service provider for institutional and private investors, municipalities and the Federal Government
Australian Securities Exchange Ltd (ASX) is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or confused within Australia as, The Sydney Stock Exchange, a separate entity). The ASX was formed on 1 April 1987, through incorporation under legislation of the Australian Parliament as an amalgamation of the six state securities exchanges, and merged with the Sydney Futures Exchange in 2006.
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Today, ASX has an average daily turnover of A$4.685 billion and a market capitalisation of around A$1.6 trillion, making it one of the world's top 20 listed exchange groups, and the largest in the southern hemisphere.
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ASX Clear is the clearing house for all shares, structured products, warrants and ASX Equity Derivatives.
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ASX Group[3] is a market operator, clearing house and payments system facilitator. It also oversees compliance with its operating rules, promotes standards of corporate governance among Australia's listed companies and helps to educate retail investors.
+
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Australia's capital markets
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Financial development – Australia was ranked 5th out of 57 of the world's leading financial systems and capital markets by the World Economic Forum;
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Equity market – the 8th largest in the world (based on free-float market capitalisation) and the 2nd largest in Asia-Pacific, with A$1.2 trillion market capitalisation and average daily secondary trading of over A$5 billion a day;
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Bond market – 3rd largest debt market in the Asia Pacific;
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Derivatives market – largest fixed income derivatives in the Asia-Pacific region;
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Foreign exchange market – the Australian foreign exchange market is the 7th largest in the world in terms of global turnover, while the Australian dollar is the 5th most traded currency and the AUD/USD the 4th most traded currency pair;
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Funds management – Due in large part to its compulsory superannuation system, Australia has the largest pool of funds under management in the Asia-Pacific region, and the 4th largest in the world. Its primary markets are the AQUA Markets.
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Regulation
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The Australian Securities & Investments Commission (ASIC) has responsibility for the supervision of real-time trading on Australia's domestic licensed financial markets and the supervision of the conduct by participants (including the relationship between participants and their clients) on those markets. ASIC also supervises ASX's own compliance as a public company with ASX Listing Rules.
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ASX Compliance is an ASX subsidiary company that is responsible for monitoring and enforcing ASX-listed companies' compliance with the ASX operating rules.
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The Reserve Bank of Australia (RBA) has oversight of the ASX's clearing and settlement facilities for financial system stability.
+
+
Products
+
Products and services available for trading on ASX include shares, futures, exchange traded options, warrants, contracts for difference, exchange-traded funds, real estate investment trusts, listed investment companies and interest rate securities.[4]
+
The major market index is the S&P/ASX 200, an index made up of the top 200 shares in the ASX. This supplanted the previously significant All Ordinaries index, which still runs parallel to the S&P ASX 200. Both are commonly quoted together. Other indices for the bigger stocks are the S&P/ASX 100 and S&P/ASX 50.
+
In November 1903 the first interstate conference was held to coincide with the Melbourne Cup. The exchanges then met on an informal basis until 1937 when the Australian Associated Stock Exchanges (AASE) was established, with representatives from each exchange. Over time the AASE established uniform listing rules, broker rules, and commission rates.
+
Trading was conducted by a call system, where an exchange employee called the names of each company and brokers bid or offered on each. In the 1960s this changed to a post system. Exchange employees called "chalkies" wrote bids and offers in chalk on blackboards continuously, and recorded transactions made.[6]
+
The ASX (Australian Stock Exchange Limited) was formed in 1987 by legislation of the Australian Parliament which enabled the amalgamation of six independent stock exchanges that formerly operated in the state capital cities. After demutualisation, the ASX was the first exchange in the world to have its shares quoted on its own market. The ASX was listed on 14 October 1998.[7] On 7 July 2006 the Australian Stock Exchange merged with SFE Corporation, holding company for the Sydney Futures Exchange.
+
1861: Ten years after the official advent of the Gold Rush, Australia's first stock exchange was formed in Melbourne. In the 1850s Victoria was Australia's gold mining centre, its population increasing from 80,000 in 1851 to 540,000 in 1861.
+
1871: Thirty years after it lit the first gas street light in Sydney, the Australian Gas Light Company took its place in history again, becoming the second company to list on the Sydney Stock Exchange.
+
1885: Two years after the Broken Hill Mining Company (private company) was established by a syndicate of seven men from the Mount Gipps Station, the company was incorporated to become the Broken Hill Proprietary Company Limited (BHP). In 1885, BHP listed on the Melbourne Stock Exchange.
+
1937: The Australian Associated Stock Exchanges (AASE) was established in 1937. Since 1903 the state stock exchanges had met on an informal basis, but in 1936 Sydney took the lead in formalising the association. Initially this involved the exchanges in Adelaide, Brisbane, Hobart and Sydney. Melbourne and Perth joined soon after. Through the AASE the exchanges gradually brought in common listing requirements for companies and uniform brokerage and other rules for stockbroking firms. They also set the ground rules for commissions and the flotation of government and semi-government loan raisings.
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1938: Publication of the first share price index.
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1939: Sydney Stock Exchange closed for the first time due to the declaration of World War II.
+
1960: Sydney Futures Exchange began trading as Sydney Greasy Wool Futures Exchange (SGWFE). Its original goal was to provide Australian wool traders with hedging facilities in their own country. SGWFE offered a single contract of greasy wool that by the end of the year had traded 19,042 lots.
+
1969–1970: The Poseidon bubble (a mining boom triggered by a nickel discovery in Western Australia) caused Australian mining shares to soar and then crash, prompting regulatory recommendations that ultimately led to Australia's national companies and securities legislation.
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1976: The Australian Options Market was established, trading call options.
+
1980: The separate Melbourne and Sydney stock exchange indices were replaced by Australian Stock Exchange indices.
+
1984: Brokers' commission rates were deregulated. Commissions have gradually fallen ever since, with rates today as low as 0.12% or 0.05% from discount internet-based brokers.
+
1984: Sydney Stock Exchange closed due to heavy rain and flooding on 9 November 1984 with 70 millimetres of rain falling in one half-hour. All trading on the floor of the Sydney Exchange was suspended throughout Friday. Damage totaled $2 million and repairs took more than six months, with new carpet laid and cables and computers replaced.
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Stockbrokers who had taken advantage of joint access were able to trade on the Melbourne Stock Exchange. And, with the Sydney trading floor closed by floodwaters, the Melbourne Exchange enjoyed its busiest trading day for the year. After that episode a back-up site was established outside the Sydney CBD.
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1987: The Australian Stock Exchange Limited (ASX) was formed on 1 April 1987, through incorporation under legislation of the Australian Parliament. The formation of the national stock exchange involved the amalgamation of the six independent stock exchanges that had operated in the states' capital cities.
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Launch of the Stock Exchange Automated Trading System (SEATS). It was a far cry from the original system which dated back over 100 years. During that time there had been three different forms of trading on the Australian stock exchanges. The earliest was the auction-based call system, which saw a stock exchange employee (the caller) call the name of each listed security in turn while members bid, offered, sold or bought the stock at each call. This system proved inadequate to handle the increased volume of trading during the mining booms. It was replaced by the 'post' system in the early 1960s, which involved stocks being quoted on 'posts' or 'boards'. 'Chalkies' were employed by the Stock Exchange and it was their function to record in chalk the bids and offers of the operators (employees of stockbrokers) and the sales made. This system stayed in place until 1987.
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1993: Fixed-interest securities were added (see Interest rate market below). Also in 1993, the FAST system of accelerated settlement was established, and the following year the CHESS system (see Settlement below) was introduced, superseding FAST.
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1994: The Sydney Futures Exchange announced trading in futures over individual ASX stocks. The ASX responded with the Low Exercise Price Option or LEPO (see below). The SFE went to court,[8][9] claiming that LEPOs were futures and therefore that the ASX could not offer them. The court held they were options and so LEPOs were introduced in 1995.
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1995: Stamp duty on share transactions was halved from 0.3% to 0.15%. The ASX had agreed with the Queensland State Government to locate staff in Brisbane in exchange for the stamp duty reduction there, and the other states followed suit so as not to lose brokerage business to Queensland. In 2000 stamp duty was abolished in all states as part of the introduction of the GST.
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1996: The exchange members (brokers etc.) voted to demutualise. The exchange was incorporated as ASX Limited and in 1998 the company was listed on the ASX itself, with the Australian Securities & Investments Commission enforcing the listing rules for ASX Limited.
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1997: Electronic trading commences as the option market moves from floor to screen.[10] A phased transition to the electronic CLICK system for derivatives began.
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1998: ASX demutualised to become a listed company. It was the first exchange in the world to demutualise and list on its own market, a trend that has been imitated by several other exchanges over the years. The Australian Mutual Provident Society began in 1849 as an organisation offering life insurance. Now known as AMP it became a publicly listed company on the ASX in 1998.
+
2000: In October, ASX acquires a 15% stake in the trading and order management software company IRESS (formerly BridgeDFS Ltd).[11]
+
2001: Stamp duty on marketable securities abolished.
+
2006: The ASX announced a merger with the Sydney Futures Exchange, the primary derivatives exchange in Australia.
+
ASX Group has two trading platforms – ASX Trade,[12] which facilitates the trading of ASX equity securities and ASX Trade24 for derivative securities trading.
+
All ASX equity securities are traded on screen on ASX Trade. ASX Trade is a NASDAQ OMX ultra-low latency trading platform based on NASDAQ OMX's Genium INET system, which is used by many exchanges around the world. It is one of the fastest and most functional multi-asset trading platforms in the world, delivering latency down to ~250 microseconds.
+
ASX Trade24 is ASX global trading platform for derivatives. It is globally distributed with network access points (gateways) located in Chicago, New York, London, Hong Kong, Singapore, Sydney and Melbourne. It also allows for true 24-hour trading, and simultaneously maintains two active trading days which enables products to be opened for trading in the new trading day in one time zone while products are still trading under the previous day.
+
+
Opening times
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The normal trading or business days of the ASX are week-days, Monday to Friday. ASX does not trade on national public holidays: New Year's Day (1 January), Australia Day (26 January, and observed on this day or the first business day after this date), Good Friday (that varies each year), Easter Monday, Anzac day (25 April), Queen's birthday (June), Christmas Day (25 December) and Boxing Day (26 December).
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On each trading day there is a pre-market session from 7:00am to 10:00am AEST and a normal trading session from 10:00am to 4:00pm AEST. The market opens alphabetically in single-price auctions, phased over the first ten minutes, with a small random time built in to prevent exact prediction of the first trades. There is also a single-price auction between 4:10pm and 4:12pm to set the daily closing prices.
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Security holders hold shares in one of two forms, both of which operate as uncertificated holdings, rather than through the issue of physical share certificates:
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Clearing House Electronic Sub-register System (CHESS). The investor's controlling participant (normally a broker) sponsors the client into CHESS. The security holder is given a "holder identification number" (HIN) and monthly statements are sent to the security holder from the CHESS system when there is a movement in their holding that month.
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Issuer-sponsored. The company's share register administers the security holder's holding and issues the investor with a security-holder reference number (SRN) which may be quoted when selling.
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Holdings may be moved from issuer-sponsored to CHESS or between different brokers by electronic message initiated by the controlling participant.
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Short selling of shares is permitted on the ASX, but only among designated stocks and with certain conditions:
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ASX trading participants (brokers) must report all daily gross short sales to ASX. The report will aggregate the gross short sales as reported by each trading participant at an individual stock level.
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ASX publishes aggregate gross short sales to ASX participants and the general public.[13]
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Many brokers do not offer short selling to small private investors. LEPOs can serve as an equivalent, while contracts for difference (CFDs) offered by third-party providers are another alternative.
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In September 2008, ASIC suspended nearly all forms of short selling due to concerns about market stability in the ongoing global financial crisis.[14][15] The ban on covered short selling was lifted in May 2009.[16]
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Also, in the biggest change for ASX in 15 years, ASTC Settlement Rule 10.11.12 was introduced, which requires the broker to provide stocks when settlement is due, otherwise the broker must buy the stock on the market to cover the shortfall. The rule requires that if a Failed Settlement Shortfall exists on the second business day after the day on which the Rescheduled Batch Instruction was originally scheduled for settlement (that is, generally on T+5), the delivering settlement participant must either:
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close out the Failed Settlement Shortfall on the next business day by purchasing the number of Financial Products of the relevant class equal to the shortfall; or
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acquire under a securities lending arrangement the number of Financial Products of the relevant class equal to the shortfall and deliver those Financial Products in Batch Settlement no more than two business days later.[17]
Options on leading shares are traded on the ASX, with standardised sets of strike prices and expiry dates. Liquidity is provided by market makers who are required to provide quotes. Each market maker is assigned two or more stocks. A stock can have more than one market maker, and they compete with one another. A market maker may choose one or both of:
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Make a market continuously, on a set of 18 options.
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Make a market in response to a quote request, in any option up to 9 months out.
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In both cases there is a minimum quantity (5 or 10 contracts depending on the shares) and a maximum spread permitted.
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Due to the higher risks in options, brokers must check clients' suitability before allowing them to trade options. Clients may both take (i.e. buy) and write (i.e. sell) options. For written positions, the client must put up margin.
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The ASX interest rate market is the set of corporate bonds, floating rate notes, and bond-like preference shares listed on the exchange. These securities are traded and settled in the same way as ordinary shares, but the ASX provides information such as their maturity, effective interest rate, etc., to aid comparison.[18]
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The Sydney Futures Exchange (SFE) was the 10th largest derivatives exchange in the world, providing derivatives in interest rates, equities, currencies and commodities. The SFE is now part of ASX and its most active products are:
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SPI 200 Futures – Futures contracts on an index representing the largest 200 stocks on the Australian Stock Exchange by market capitalisation.
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AU 90-day Bank Accepted Bill Futures – Australia's equivalent of T-Bill futures.
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3-Year Bond Futures – Futures contracts on Australian 3-year bonds.
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10-Year Bond Futures – Futures contracts on Australian 10-year bonds.
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The ASX trades futures over the ASX 50, ASX 200 and ASX property indexes, and over grain, electricity and wool. Options over grain futures are also traded.
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The ASX maintains stock indexes concerning stocks traded on the exchange in conjunction with Standard & Poor's. There is a hierarchy of index groups called the S&P/ASX 20, S&P/ASX 50, S&P/ASX 100, S&P/ASX 200 and S&P/ASX 300, notionally containing the 20, 50, 100, 200 and 300 largest companies listed on the exchange, subject to some qualifications.
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The ASX Sharemarket Game give members of the public and secondary school students the chance to learn about investing in the sharemarket using real market prices. Participants receive a hypothetical $50,000 to buy and sell shares in 150 companies and track the progress of their investments over the duration of the game.[19]
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ASX was (25 October 2010) in merger talks with Singapore Exchange (SGX). While there was an initial expectation that the merger would have created a bourse with a market value of US$14 billion,[20] this was a misconception; the final proposal intended that the ASX and SGX bourses would have continued functioning separately. The merger was blocked by Treasurer of AustraliaWayne Swan on 8 April 2011, on advice from the Foreign Investment Review Board that the proposed merger was not in the best interests of Australia.[21]
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2015 – Information Services and Technical Services revenues grew by 8% and 10% respectively, while Austraclear chipped in with 9%. Another bright spot was the dividend from IRESS, which rose 47% from the prior period, to $4.9m. This financial software company has risen by 27% over the past couple of years and ASX's 19.3% stake is now worth $334m, more than 4% of its own market value.[22]
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3 February 1891; 133 years ago (1891-02-03) (as Association of Stockbrokers in Hong Kong) 21 February 1914; 110 years ago (1914-02-21) (as Hong Kong Stock Exchange)
The Stock Exchange of Hong Kong (香港交易所, SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it had 2,538 listed companies with a combined market capitalization of HK$47 trillion.[1] It is reported as the fastest growing stock exchange in Asia.[2]
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The stock exchange is owned (through its subsidiary Stock Exchange of Hong Kong Limited) by Hong Kong Exchanges and Clearing Limited (HKEX), a holding company that it also lists (SEHK: 388) and that in 2021 became the world's largest bourse operator[3] in terms of market capitalization, surpassing Chicago-based CME. A 2021 poll reported that approximately 57% of Hong Kong adults had money invested in the stock market.[4] The physical trading floor at Exchange Square was closed in October 2017.[5]
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The Hong Kong securities market can be traced back to 1866, but the stock market was formally set up in 1891, when the Association of Stockbrokers in Hong Kong was established.[6] It was renamed as The Hong Kong Stock Exchange in 1914.
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By 1972, Hong Kong had four stock exchanges in operation. There were subsequent calls for the formation of a unified stock exchange. The Stock Exchange of Hong Kong Limited was incorporated in 1980 and trading on the exchange finally commenced on 2 April 1986. Since 1986, a number of major developments have taken place. The 1987 market crash revealed flaws in the market and led to calls for a complete reform of the Hong Kong securities industry. This led to significant regulatory changes and infrastructural developments. As a result, the Securities and Futures Commission (SFC) was set up in 1989 as the single statutory securities market regulator.
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The market infrastructure was much improved[how?] with the introduction by the exchange of the Central Clearing and Settlement System (CCASS) in June 1992 and the Automatic Order Matching and Execution System (AMS) in November 1993. Since then, the framework of market rules and regulations, both exchange-administered or otherwise, have been undergoing continuing review and revision to meet changing market needs while ensuring effective market
+regulation.
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The Exchange Listing Rules have been made more comprehensive, and other existing regulations have been improved or new regulations introduced to enhance market development and investor protection. Enhancements were also made to the system infrastructure, including the launch of off-floor trading terminals in brokers' offices in January 1996. The third generation of the trading system, AMS/3, will be launched in 2000. It will provide enhanced functionality and a platform for a straight-through transaction process.
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In respect of market and product development, there is the listing of the first derivative warrant in February 1988, the listing of the first China-incorporated enterprise (H share) in June 1993 (Tsingtao Brewery);[7]: 48 and the introduction of regulated short selling in January 1994 and stock options in September 1995. Furthermore, the exchange introduced the Growth Enterprise Market (GEM) in November 1999 to provide fundraising opportunities for growth companies of all sizes from all industries, and to promote the development of technology industries in the region.
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On 2 April 1986, a new trading hall opened. At that time, a total of 249 companies were listed on the Exchange, total market capitalisation was HK$245 billion.
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6 October 1986: Stock Exchange grand opening.
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October 1987: The Stock Exchange is closed for four days in an attempt to stop losses during Black Monday global equities market crash
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May 1988: The Ian Hay Davison Report, commissioned to investigate practices on the exchange in the lead-up to its closure, is released, resulting in significant market reforms - although many took years to finally implement
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On 24 June 1992, the Central Clearing and Settlement System (CCASS) is introduced
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On 15 July 1993, in the Tsingtao Brewery became the first Chinese enterprise to list its H shares on the exchange.
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On 1 November 1993, a new "Automatic Order Matching and Execution System", AMS/1, was introduced on the exchange; later, in January 1996, the second phase AMS/2 was introduced, becoming the basis of off-floor trading.
25 November 1999, two companies were jointly listed on the newly created Growth Enterprise Market (GEM)
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On 6 March 2000, The Stock Exchange, Futures Exchange, and Hong Kong Securities Clearing Company all became wholly owned subsidiaries of HKEx, which was in turn listed on 27 June 2000.
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On 23 October 2000, AMS/3 was implemented on the exchange.
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On 27 October 2017, the floor trading lobby was closed due to the shift towards electronic trading. By 2014, the venue accounted for less than 1% of trade volume.[9] The trading hall was renamed to Hong Kong Connect Hall and will be redeveloped as a museum, conference, and exhibition space to showcase Hong Kong's financial markets.[10]
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On 19 July 2023, the Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model was launched with both counters having the same rights, entitlement, status and par value if applicable. Investors are now able to trade their shares on the RMB counter using their offshore RMB. Shares are fully interchangeable between the 2 counters. The model was introduced to provide liquidity to the RMB counter and minimize discrepancies between the 2 counters. [11]
A pre-opening auction session from 9:00 am to 9:30 am. The opening price of a security is reported shortly after 9:20 am.[13]
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A morning continuous trading session from 09:30 am to 12:00 pm.[13]
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An extended morning session from 12:00 noon to 1:00 pm, also referred to as the lunch break.[13][14] Continuous trading proceeds in specifically designated securities (currently two ETFs, 4362 and 4363). Trading in other securities is not possible. However, previously placed orders in any securities can be cancelled from 1:00 pm onwards.[15]
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An afternoon continuous trading session from 1:00 pm to 4:00 pm.[13]
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The closing price is reported as the median of five price snapshots taken from 3:59 to 4:00 pm every 15 seconds.[16] In May 2008, the exchange also implemented a closing auction session to run from 4:00 pm to 4:10 pm, with a similar pricing mechanism as the opening auction; however, this resulted in significant fluctuations in the closing prices of stocks and suspicions of market manipulation. Initially, the exchange proposed limiting price fluctuations in the auction sessions to 2%; in the end, they removed the closing session entirely in March 2009.[17]
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Up until 2011, trading hours comprised a pre-opening auction from 9:30 am to 9:50 am, followed by continuous trading from 10:00 am to 12:30 pm and 2:30 pm to 4:00 pm. The two-hour lunch break between the morning and afternoon sessions was the longest among the world's 20 major stock exchanges. A 2003 proposal to shorten the lunch break failed due to opposition from brokers. Another plan to shorten the lunch break to one hour was floated by the exchange in 2010; the morning session would then start earlier, run from 9:30 am to 12:00 pm, and the afternoon session from 1:00 pm to 4:00 pm, leaving the closing time the same as before. Justifications included bringing hours into line with China. Reactions from both brokers and the restaurant industry were mixed.[18]
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On 7 March 2011, the exchange extended its hours in the first of two phases. The morning session now ran from 9:30 am to 12:00 noon, followed by a ninety-minute lunch break, and an afternoon session from 1:30 pm to 4:00 pm. Index futures and options now began trading at 9:15 am, thirty minutes earlier than before, and closed at the same time as before, 4:15 pm. On 5 March 2012, the lunch break was cut to sixty minutes, with the afternoon session running from 1:00 pm to 4:00 pm.[14][19]
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The exchange first introduced a computer-assisted trading system on 2 April 1986.[20] In 1993 the exchange launched the "Automatic Order Matching and Execution System" (AMS), which was replaced by the third generation system (AMS/3) in October 2000.[21]
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David Webb, independent non-executive director of the Exchange since 2003, has been arguing for a super regulatory authority to assume that role as regulator, as there is an inherent conflict between its commercial and regulatory roles. In the meantime, he argues for improved investor representation on the Hong Kong Stock Exchange.
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In 2007, the uproar by smaller local stockbrokers over the decision by board of directors to cut minimum trading spreads for equities and warrants trading at between 25 HK cents and HK$2 caused the new board to vote to reverse the decision. The reforms were to be implemented in the first quarter, but was put back on the table following protests by brokers. Webb criticised the board for caving in to vested interests.[22]
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It is perfectly normal for Hong Kong stocks of even well-known companies to trade at prices that correspond to less than HK$4 a share. A Hong Kong stock would not be considered a penny stock unless its price was less than about HK$0.50.
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Each stock has its own individual board lot size (an online broker will usually display this along with the stock price when you get a quote); purchases in amounts that are not multiples of the board lot size are done in a separate "odd lot market".
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There is a close-in-price rule for limit orders, which must be within 24 ticks of the current price. Individual brokers may impose an even stricter rule; for instance, HSBC requires limit orders to be within 10 ticks of the current price. Broker support for triggered order types such as market-if-touched orders would allow placing orders further away, which would be sent to the exchange when the price condition was established.
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Twenty largest stocks by market capitalisation[edit source]
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Source: HKEX, in billions of Hong Kong dollars, Data updated on 14 February 2018
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An Act To prohibit Members of Congress and employees of Congress from using nonpublic information derived from their official positions for personal benefit, and for other purposes
Nicknames
Stop Trading on Congressional Knowledge Act of 2012
The Stop Trading on Congressional Knowledge (STOCK) Act of 2012 (Pub. L.Tooltip Public Law (United States)112–105 (text)(PDF), S. 2038, 126 Stat.291, enacted April 4, 2012) is an Act of Congress designed to combat insider trading. It was signed into law by PresidentBarack Obama on April 4, 2012. The law prohibits the use of non-public information for private profit, including insider trading by members of Congress and other government employees. It confirms changes to the Commodity Exchange Act, specifies reporting intervals for financial transactions.
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Originally written and introduced by Washington Congressman Brian Baird, the STOCK Act gained popularity following a 60 Minutes segment on congressional insider trading in 2011, after which Republican Senator Scott Brown and Democratic Senator Kirsten Gillibrand reintroduced bills to combat the practice. In February 2012, the STOCK Act passed in the Senate by a 96–3 vote; the only no votes were senators Jeff Bingaman, Richard Burr, and Tom Coburn.[2] Later the House of Representatives passed it by a 417–2 vote.[3] The bill was supported heavily by vulnerable incumbents and signed into law by President Obama.[4] According to the current United States Senate Select Committee on Ethics, "A member, officer, or employee of the Senate shall not receive any compensation, nor shall he permit any compensation to accrue to his beneficial interest from any source, the receipt or accrual of which would occur by virtue of influence improperly exerted from his position as a member, officer, or employee."[5]
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The law is yet another addition to the series of policy created to mandate and regulate the transactions of securities. The Securities and Exchange Act of 1933 and was the first policy created to protect the sale of primary security transactions by companies. Also known as the "Truth in Securities" law, it paved the way to provide investors with more protection and a fair opportunity for their liquid assets.[6] Congress saw the lack of information provided to investors was a large disadvantage to investors and derailed their interest, causing a lack of liquidity in the market during the recovery. It also laid out examples and identified situations of fraudulent activity that has been previously committed by companies.[7] In addition, it provided guidelines for companies with registered publicly held securities to publicly disclose annual and quarterly reports to properly educate their individual investors.[8]
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The Ethics in Government Act of 1978 was established decades later to create a code of ethics as a means for political representatives to abide by. Amongst other regulations placed, this piece of legislature also had large implications on the effects of information asymmetry and was intended to create honest and just security transactions. These acts were necessary to prevent fraudulent activity imposed by large corporations and political representatives to which were very capable of hiding information that would benefit their company or their applicable assets.
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The STOCK Act is an original bill to prohibit members of Congress and employees of Congress from using private information derived from their official positions for personal benefit, and for other purposes. With this bill in place, members of Congress are no longer allowed to use information garnered through official business for personal reasons. The Stop Trading on Congressional Knowledge (STOCK) Act prohibits members and employees of Congress from using "any nonpublic information derived from the individual's position ... or gained from performance of the individual's duties, for personal benefit". The bill also applies to all employees in the Executive and Judicial branches of the federal government. The STOCK Act required a one-year study of the growing political intelligence industry and requires every Member of Congress to publicly file and disclose any financial transaction of stocks, bond, commodities futures, and other securities within 45 days on their websites, rather than once a year as was required previously. The Act also requires members of Congress and Executive branch officials to disclose the terms of mortgages on their homes, prohibits them from receiving special access to initial public stock offerings, and denies federal pensions to members of Congress who are convicted of felonies involving public corruption. The bill is divided into nineteen sections.[9] The following summary was written by the Congressional Research Service, a nonpartisan arm of the Library of Congress, which serves Congress.
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Requires the congressional ethics committees to issue interpretive guidance of the rules of each chamber, including rules on conflicts of interest and gifts, with respect to the prohibition against the use by Members of Congress and congressional employees (including legislative branch officers and employees), as a means for making a private profit, of any nonpublic information derived from their positions as Members or congressional employees, or gained from performance of the individual's official responsibilities.
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Declares that such Members and employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5. Amends the Securities Exchange Act of 1934 to declare that such Members and employees owe a duty arising from a relationship of trust and confidence to Congress, the U.S. government, and U.S. citizens with respect to material, nonpublic information derived from their positions as Members or congressional employees or gained from performance of the individual's official responsibilities.
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Amends the Commodity Exchange Act to apply to Members and congressional employees, or to judicial officers or employees its prohibitions against certain transactions, involving the purchase or sale of any commodity in interstate commerce, or for future delivery, or any swap.
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Amends the Ethics in Government Act of 1978 (EGA) to require specified individuals to file reports within 30 to 45 days after receiving notice of a purchase, sale, or exchange which exceeds $1,000 in stocks, bonds, commodities futures, and other forms of securities, subject to any waivers and exclusions. Lists such individuals as: (1) the President; (2) the Vice President; (3) executive officers or employees, including certain special government employees and members of a uniformed service; (4) appointed administrative law judges; (5) executive branch employees in positions excepted from the competitive service because of their confidential or policymaking character (except those excluded from such exception by the Director of the Office of Government Ethics [OGE]); (6) the Postmaster General, the Deputy Postmaster General, each Governor of the Board of Governors of the U.S. Postal Service, and certain U.S. Postal Service officers or employees; (7) the OGE Director and each designated agency ethics official; (8) civilian employees of the Executive Office of the President (other than a special government employee) appointed by the President; (9) Members of Congress; and (10) congressional officers and employees.
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Requires the Secretary of the Senate, the Sergeant at Arms of the Senate, and the Clerk of the House of Representatives, by August 31, 2012, or 90 days after the enactment of this Act, to ensure that financial disclosure forms filed by Members, candidates for Congress, and congressional officers and employees, in calendar year 2012 and in subsequent years be made available to the public on the respective official Senate and House websites within 30 days after filing. Terminates such requirement upon implementation of the following public disclosure systems. Directs the Secretary, the Sergeant at Arms, and the Clerk to develop systems to enable the electronic filing of such reports as well as their on-line public availability. Amends EGA to revise the retention period for mandatory public availability of financial disclosure reports. Requires retention and public availability of the financial disclosure reports of a Member of Congress until six years after the date the individual ceases to be a Member (currently, six years after receipt of the report).
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Requires the OGE to issue interpretive guidance of the relevant federal ethics statutes and regulations, including the Standards of Ethical Conduct for executive branch employees, to specify that no such individual may use non-public information derived from his or her position or gained from the performance of official responsibilities as a means for making a private profit. Requires the U.S. Judicial Conference to issue interpretive guidance of similar ethics rules, including the Code of Conduct for U.S. Judges, applicable to: (1) federal judges, and (2) judicial employees. Declares that executive branch employees, judicial officers, and judicial employees are not exempt from the insider trading prohibitions arising under the securities laws, including the Securities Exchange Act of 1934 and Rule 10b-5. Amends the Securities Exchange Act of 1934 to declare that such individuals owe a duty arising from a relationship of trust and confidence to the federal government and U.S. citizens with respect to material, nonpublic information derived from their positions as executive branch employees, judicial officers, or judicial employees gained from performance of the individual's official responsibilities.
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Directs the President to ensure that financial disclosure forms filed in calendar year 2012 and in subsequent years by executive branch employees are publicly available on appropriate official websites of executive branch agencies within 30 days after such forms are filed. Requires the OGE Director to develop systems to enable electronic filing and public access to these financial disclosure forms.
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Amends the Securities and Exchange Act of 1934 to prohibit individuals required to file financial disclosure reports under EGA from purchasing securities that are the subject of an initial public offering in any manner other than is available to members of the public generally.
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Amends EGA to require the financial disclosure report of the following individuals to include any secured mortgage which is their personal residence or that of his or her spouse: (1) the President, the Vice President, Members of Congress; and (2) certain individuals nominated for appointments as executive branch officers or employees (except those nominated to positions as Foreign Service Officers or a grade or rank in the uniformed services with a pay grade of 0-6 or below).
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Declares that the transaction reporting requirements established by this Act shall not be construed to apply to a widely held investment fund (whether a mutual fund, regulated investment company, pension or deferred compensation plan, or other investment fund): (1) if the fund is publicly traded or its assets are widely diversified, and (2) the reporting individual neither exercises control over nor has the ability to exercise control over the financial interests held by the fund.
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Denies Civil Service Retirement System (CSRS) or Federal Employees' Retirement System (FERS) retirement benefits (other than a lump-sum reimbursement of personal contributions) to the President, the Vice President, or an elected official of a state or local government, if convicted of certain felonies.
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Prohibits senior executives at the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises [GSEs]) from receiving bonuses during any period of conservatorship on or after the enactment of this Act.
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Prohibits an individual required to file a financial disclosure report under EGA from directly negotiating or having any agreement of future employment or compensation without filing a signed disclosure statement, within three business days after commencement of the negotiation or agreement, with the individual's supervising ethics office. Requires such an individual to recuse himself or herself whenever there is or there appears to be a conflict of interest with respect to the subject matter of the statement. Requires the individual, upon such a recusal, to notify the supervising ethics office and submit the relevant disclosure statement.
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Amends the federal criminal code to subject to a fine or imprisonment of up to 15 years, or both, as well as possible disqualification from holding federal office, certain covered government persons, in addition to Member of Congress and congressional employees, who with the intent to influence, on the basis of partisan political affiliation, an employment decision or employment practice of any private entity: (1) takes or withholds, or offers or threatens to take or withhold, an official act; or (2) influences, or offers or threatens to influence, the official act of another. Extends the meaning of "covered government person" (currently restricted to Members of Congress and congressional employees) to include the President, Vice President, an employee of the U.S. Postal Service or the Postal Regulatory Commission, or any other executive branch employee.
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Makes conforming amendments to EGA and the Honest Leadership and Open Government Act of 2007. Requires retention and public availability of the financial disclosure reports of Members of the House until six years after the date an individual ceases to be a Member of Congress (currently, six years after receipt of the report).[10][11]
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Overall, the STOCK Act has garnered positive support from both houses of Congress. However, guarded optimism has been expressed by politicians such as Eric Weissmann. Weissmann, a candidate for Congress in Colorado's 2nd Congressional District, recently claimed that STOCK was long overdue and that "The passage of the STOCK Act by both the House and Senate is a good first step in deterring these abusive practices, but doesn't go far enough to protect the American people from members of Congress who chose to act with self-interest over public good."[12]
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Other examples of positive support for STOCK include President Obama who upon signing the bill reassured that congressional members must play by the same rules as regular citizens. Obama regards the STOCK act as a way to monitor congressional activity and create transparency within the branch. He spoke to this point by adding, "It's the notion that the powerful shouldn't get to create one set of rules for themselves and another set of rules for everybody else. ... If we expect that to apply to our biggest corporations and our most successful citizens, it certainly should apply to our elected officials."[13]
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As a result of the economic disruption caused by the COVID-19 pandemic, there are new calls to expand or reform the STOCK Act.[14] There have been several reports by various prominent news agencies of alleged violations of the STOCK act by members of Congress.[15] Analysis in 2021 by Business Insider shows fifty four members of Congress, executive officials, and numerous staffers violating the STOCK Act.[16][17] As of 2021, in the approximately nine month period up to September 2021, Senate and House members disclosed 4,000 trades worth at least $315 million of stocks and bonds.[18] The list of alleged violations include members from both parties.[15] A majority of respondents supported a ban for members of Congress to hold individual stocks as shown in a recent poll conducted in March 2020.[19] Support for the ban appears to be bipartisan and ideologically agnostic as the demographic representation of the poll results present.[19]
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The real world effectiveness of the STOCK Act at curbing insider trading is up for debate. Insider trading laws which already existed to stop such practices lack specific definitions making them difficult to enforce, the STOCK Act attempts to rectify this but critics argue it does not do enough.[20] The enforcement of the STOCK Act is left up to the executive branch which may be reluctant to pursue cases against the legislature because of concerns regarding the separation of powers and the inherent imbalance this may present if executive were to abuse the law.[21] This can lead to a situation where the most egregious cases are pursued while milder cases which may be difficult to define are not pursued. A recent study did not find a difference between the expected returns of public equities owned by public officials tracked between 2012 and 2020 when compared to randomly choosing stocks.[22] Suggesting that public officials either did not engage in insider trading or if they did, it did not result in better returns than if they had chosen stocks randomly.
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The STOCK Act was modified on April 15, 2013, by S.716. This amendment modifies the online disclosure portion of the STOCK Act, so that some officials, but not the President, Vice President, Congress, or anyone running for Congress, can no longer file online and their records are no longer easily accessible to the public. In Section (a)2, the amendment specifically does not alter the online access for trades by the President, the Vice President, Congress, or those running for Congress.[23] The reasoning for this change was to prevent criminals from gaining access to the financial data and using it against affected persons. The amendment also eliminated the requirement for the creation of searchable, sortable database of information in reports, and the requirement that reports be done in electronic format, rather than on paper.[24] This bill was introduced by Senator Harry Reid on April 11, 2013. It was considered by the Senate and passed by unanimous consent. In the House, S.716 received only 14 seconds of discussion before being passed by unanimous consent.[25]
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The main provision that was repealed would have required about 28,000 senior government officials to post their financial information online, something that had been strongly criticized by federal government employee unions. A report by the National Academy of Public Administration, published in March 2013, said that the provision could threaten the safety of government employees abroad, as well as make it difficult to attract and retain public sector employees.[26]
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^Christina Wilkie. (20 January 2022). "Energy Secretary Jennifer Granholm violated a stock disclosure law nine times last year". CNBC website Retrieved 21 January 2022.
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