NYSE Euronext

NYSE Euronext is one of the leading futures and options trading venues. In Europe, Liffe is one of the world’s top futures and options trading businesses for derivatives on commodities, currencies, equities, bonds, interest rates, indices and swaps. In the U.S., NYSE Arca Options is an innovative automated trading system for equity options that offers superior functionality and competitive pricing. NYSE Liffe is the new home for our US Futures business. Learn more about NYSE Euronext’s derivative trading businesses here.

NASDAQ OMX

The NASDAQ OMX Group, including NASDAQ OMX Baltic stock exchanges in Tallinn, Riga and Vilnius, is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents and more than 50 countries. NASDAQ OMX Baltic is positioned at the heart of Baltic Sea region. An excellent business environment provides solid growth opportunities for new and existing companies, generating exceptional opportunities for investors.

Bulgarian Stock Exchange

Bulgarian Stock Exchange – Sofia was officially licensed by the State Securities and Exchange Commission to operate as a stock exchange on October 9, 1997 and is currently the only functioning stock exchange in Bulgaria. The object of the Exchange includes the following:

1. Organization of trading in securities and other financial instruments;

2. Organization and maintenance of an information system for trading in securities;

3. Creation and maintenance of a clearing system guaranteeing the obligations assumed under the transactions in securities effected on the Exchange.

The mission of the Exchange is to facilitate the establishment and development of an organized capital market which would guarantee the members of the Exchange and the clients of the said members equal access to market information and equal conditions for participation in trading in securities.

The main strategic objectives of BSE-Sofia are to improve the liquidity of the capital market. The main strategic goals before the Exchange are connected with increasing the number, volume and variety of the traded instruments and attracting more local and international investors.

BSE-Sofia is a leading institution in the efforts for achieving a sustainable change as regards the public policies of Bulgaria's market economy as well as the transparency and openness of the capital market. The efforts of the Management are focused maintaining high operational standards, constant pursuit of market development and generation of changes.

Stock Exchange of Thailand

History of the Stock Exchange of Thailand Introduction The modern Thai Capital Market traces its origins back to the early 1960s. In 1961 Thailand implemented its first five-year National Economic and Social Development Plan to support the promotion of economic growth and stability as well as to develop the Kingdom's standard of living. Following upon this, the Second National Economic and Social Development Plan (1967-1971) then proposed for the first time that an orderly securities market be established in order to mobilize additional capital for national economic development. The creation of Thailand's first officially sanctioned and regulated securities market was initially proposed as part of the Second National Economic and Social Development Plan (1967-1971). In outlining its proposal for the creation of a supervised securities market, the Second National Development Plan stressed that the market's most important role would be to mobilize funds to support Thailand's industrialization and economic development. The modern Thai capital market can essentially be divided into two phases, beginning with "The Bangkok Stock Exchange" which was privately owned, followed by the establishment of "The Securities Exchange of Thailand". Establishment of the Bangkok Stock Exchange The inception of the Thai stock market began as far back as July 1962, when a private group established an organized stock exchange as a limited partnership. The group later became a limited company and changed its name to the "Bangkok Stock Exchange Co., Ltd." (BSE) in 1963. Despite its well-intended foundation the BSE was rather inactive. Annual turnover value consisted of only 160 million baht in 1968, and 114 million baht in 1969. Trading volumes continued to fall sharply thereafter to 46 million baht in 1970, and then 28 million baht in 1971. The turnover in debentures reached 87 million baht in 1972, but stocks continued to perform poorly, with turnover hitting an all time low of only 26 million baht. The BSE finally ceased operations in the early 1970s. It is generally accepted that the BSE failed to succeed because of a lack of official government support and a limited investor understanding of the equity market. Establishment of the Stock Exchange of Thailand Despite the failure of the BSE, the concept of an orderly, officially supported securities market in Thailand had by then attracted considerable attention. In this regard, the Second National Economic and Social Development Plan (1967-1971) proposed, for the first time, a plan for the establishment of such a market, with appropriate facilities and procedures for securities trading. In 1969, as recommended by the World Bank, the government acquired the services of Professor Sidney M. Robbins from Columbia University to study the development channels of the Thai capital market. Professor Robbins had previously served as Chief Economist at the United States Securities and Exchange Commission. The same year proved an eventful one for the Thai capital market, as the Bank of Thailand also formed a Working Group on Capital Market Development, which was assigned the task of establishing the stock market. A year later, in 1970, Professor Robbins produced a comprehensive report entitled "A Capital Market in Thailand". This report became the master plan for the future development of the Thai capital market. In 1972 the Government took a further step in this direction by amending the "Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare". The changes extended Government control and regulation over the operations of finance and securities companies, which until then had operated fairly freely. Following these amendments, in May 1974, long-awaited legislation establishing "The Securities Exchange of Thailand" (SET) was enacted. 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 April 30, 1975, "The Securities Exchange of Thailand" officially started trading. On January 1, 1991 its name was formally changed to "The Stock Exchange of Thailand" (SET). top Regulatory Framework of the Capital Market The Securities and Exchange Act of 1992 (SEA), stipulates the Securities and Exchange Commission (SEC), a single unified supervisory agency, as the regulator of the Thai Capital Market. While the SEC oversees the development of the Kingdom's capital market, the Bank of Thailand (BOT) is responsible for the country's money market. The SEA also provides a clear separation between the primary and the secondary markets to facilitate their successful development. Both primary and secondary markets are regulated by the SEC. Primary Market The SEC oversees and regulates the primary market. In this regard, a company wishing to issue new securities, carry out an initial public offering (IPO) or offer additional securities to the public must first apply for SEC approval and comply with its filing requirements. The SEC is then required to carefully review the financial status and operations of the company before allowing the firm to issue securities to the public. Secondary Market Following the initial public offering, securities may be traded in the secondary market once the issuer has applied for and been granted approval by the SET. top Roles of the Stock Exchange of Thailand As defined in the SEA (1992), the SET's primary roles are: To serve as a center for the trading of listed securities, and to provide the essential systems needed to facilitate securities trading; To undertake any business relating to the Securities Exchange, such as a clearing house, securities depository center, securities registrar, or similar activities; To undertake any other business approved by the SEC. top Operations The Stock Exchange of Thailand is a juristic entity set up under the Securities Exchange of Thailand Act, B.E. 2517 (1974). Operations started on April 30, 1975. Its mandate is to be a market or center for the trading of listed securities, and promoter of financial planning, as well as provide related services connected to such activities, without distributing any profits to members. Encourage the general public to become shareholders in a variety of local industries. It operates under the legal framework laid down in the Securities and Exchange Act, B.E. 2535 (1992). Its main operations include securities listing, supervision of listed companies and information disclosure, trading, market surveillance and member supervision, information dissemination and investor education. top Membership in International Organizations Asian and Oceanian Stock Exchanges Federation (AOSEF): joined as full member in 1982. International Organization of Securities Commissions (IOSCO): came in as full member in 1990. Then, when the Securities and Exchange Commission (SEC) was established in 1992, it became the full member and the SET moved to affiliate member. World Federation of Exchanges (WFE): joined as full member in 1990.

TAIWAN STOCK EXCHANGE

The Organization

TWSE is a private corporation with 15 board directors and 3 supervisors. At least one-third of board directors and supervisors are appointed by the securities authority to represent the public interest. TWSE consists of sixteen departments/offices, whose functions are as follows:

Listing Promotion Department	Drafting and executing securities listing rules and regulations.
Listing Supervision Department	Monitoring compliance with the continuing listing obligations by listing companies.
Trading Department	Drafting and executing securities trading rules and regulations; promoting securities investment and providing investors service.
Clearing Department	Drafting and executing securities clearing and settlement rules and regulations.
Surveillance Department	Drafting and executing securities market surveillance rules and regulations.
Compliance & Inspection Department	Auditing the financial and business operations of securities firms.
System Development Department	Overseeing research, planning and implementation of computer projects and related procurement affairs; developing, designing and testing application programs.
Computer Operation Department	Administering installation, maintenance and management of computer-related facilities; executing, operating, servicing and auditing computer business.
Market Data & Corporate Systems Department	Administering market data dissemination, including management, linkage, promotion and servicing; office automation.
International Affairs Department	Contacting and communicating with international securities agencies; handling related international affairs.
Corporate Planning & Communications Department	Conducting research into securities-related topics, publishing statistics, designing new products and managing a research library; administering domestic public relations, acting as press liaison.
Finance Department	Managing operational funds, cashiering, contracts, safekeeping of guarantee deposits, accounting and stock registrar matters.
Legal & Secretarial Services Department	Managing secretariat affairs of the Board Meetings and Shareholders’ Meetings and other business meetings; administering corporate seals, files and documentation; drafting related rules and legal services.
Human Resources Department	Managing personnel, properties, arranging procurement affairs and related affairs.
Labor Security Office	Managing labor security, health matters.
Internal Audit Office	Administering internal audits and controls of the Exchange, and reporting directly to the board of directors.

KSE

Introduction

VISION

To be a leading financial institution, offering efficient, fair and transparent securities market in the region and enjoying full confidence of the investors.

MISSION

• To strive to provide quality and value-added services to the capital market in an efficient, transparent and orderly manner, compatible with international standards and best practices.
• To provide state-of-the-art technology and automated trading operations, driven by a team of professionals in accordance with good corporate governance.
• To protect and safeguard the interests of all its stakeholders, i.e. members, listed companies, employees and the investors at large.
• To reflect the country’s economic health and behavior and play its role for the growth, development and prosperity of Pakistan.

THE JOURNEY

KSE POSITIONED TO BE A HUB OF CAPITAL FORMATION IN THE REGION

• South Asian Federation of Exchanges (SAFE)
• Vice Chairmanship of the South Asian Federation of Exchanges Member Federation of Euro-Asian Exchanges (FEAS)
• Affiliate Member of the World Federation of Exchanges (WFE)
• Affiliate Member of International Organization of Securities Commissions (IOSCO)
• Agreements with other Exchanges Dubai Financial Markets Abu Dhabi Securities Market Shanghai Stock Exchange

OUR FUTURE SUCCESS WILL DEPEND ON THE QUALITY OF OUR HUMAN RESOURCES

• A spirit of youthful energy, high intellect and superior skills characterizes our people.
• Our workforce consists of a combination of youth and experience – perfectly suitable to the organization’s current requirement and future challenges.
• KSE employs the best available human resource from the capital market and financial industry.
• Candidates are selected based on their individual energy, quick thinking ability, confidence, decision making ability, integrity and professionalism – attributes that define the person’s compatibility with KSE culture.
• The key to our long-term success is the creative genius of our people and their drive towards excellence.
• Our employees are exposed to an organizational commitment to continuous personal and professional development.
• Our people get involved in various initiatives ranging from management skills, development and personal improvement, to technology advancement and process enhancement.
• On a regular basis, some of our best performers are selected for our Mentoring Program, where seasoned mentors groom their portages towards positions of greater responsibility and influence.
• Promoting a performance driven culture where ‘high performers’ are recognized for their exceptional contributions.

WE PLAY A KEY ROLE IN PAKISTAN’S ECONOMY

• The KSE is one of Pakistan’s largest tax payer and in the fiscal year 2006- 2007 contributed over Rs. 4 billion towards the national exchequer.
• Listed Companies contribute over 10% of total revenue collected by the Government of Pakistan.
• KSE brokers on average pay more than 50% of their profit before tax as presumptive tax.
• Our investors pay 10% tax on dividends.

OUR CUSTOMER

• Issuers (Listed Companies)
• Brokers and Members
• Investors

OUR TECHNOLOGY

Our Information Technology Group forms the Core of our Business Operations

• Development, implementation and monitoring of state-of-the-art trading system known as Karachi Automated Trading System (KATS), introduced in 2002 with a capacity of 1 million trades a day and unlimited number of users.
• Disaster Recovery Management and Business Continuity Programs database backups.
• Software Development, Testing and Training.
• Customer Services Support.
• Caters to member’s complaints regarding computer network and trading systems.
• Administration and Maintenance of servers and operating systems.
• Partnerships with Microsoft, Oracle and Unisys for I.T. infrastructure.

Beirut Stock Exchange (BSE)

Beirut Stock Exchange (BSE) is the second oldest stock market in the region; it was established in 1920, by a decree of the French Commissioner. Initially, trading was restricted to gold and foreign currencies. In the early 30s, trading was expanded to encompass shares of private companies set up under the French mandate to operate and manage some public services and sectors (railways, communications, post…). It was then tantamount to privatization. Some of theses corporate securities and shares were listed on both BSE and Bourse de Paris at the same time.

In the 1950s and 1960s, the Lebanese economy witnessed a significant activity; various industrial, banking and services companies listed their stocks on the BSE, thus prompt it at the forefront of the regional markets, totaling 50 listed bonds.

In 1975, at the onset of the security turmoil in Lebanon, the trading activity in the BSE draws back and was conclusively halted in 1983. The suspension extended until 1996.

In 1994, the prevailing stability and security in the country induced the Lebanese government into appointing a new administrating committee to re-launch the BSE. The committee set up a new internal bylaw, re-structured and streamlined mechanisms and trading systems, with the collaboration of the Bourse de Paris. A new electronic brokers system (automated order) was set in place, based on the fixing price instead of the traditional OTC voice brokers.

Kuwait Stock Exchange

About KSE - Objectieves

• The Kuwait Stock Exchange enjoys an independent judicial personality with the right of litigation in a mode facilitating the performance of its functions for the purpose of realizing the objectives of its organization in the best manner within the scope of regulations and laws governing the Stock Exchange operations. • The Stock Exchange within its activity act to direct and rationalize dealing in stocks and securities, within the scope of its powers in order to develop and stabilize dealing in securities in a manner securing safe, easy and accurate transactions so as to avoid any confusion in dealings. • The Stock Exchange, in pursuance of the research and the studies concluded by it and its follow up of the security dealing process shall render appropriate advice and opinion to the competent government authorities regarding the financial status of the Stock Exchange member companies and means of promoting their efficiency for realization of their relevant objectives. • The Stock Exchange shall participate with the competent authorities in order to realize coordination and integration among the financial and the economic activities and the capital movement so as to assist in achieving the economic and the financial development and stability of the state. • The Stock Exchange staff shall continue to develop the systems and the methods of dealing in securities, besides introducing modern techniques such as those applied in advanced stock markets for the purpose of achieving a sound financial position for the Kuwait Stock Exchange on both, regional and international levels. • The Stock Exchange acts to encourage saving, promote investment awareness among citizens, protect depositors and create means for investment of funds in securities, in a manner beneficial to the economy.

Tokyo Stock Exchange

Kabuto-cho", where Tokyo Stock Exchange is located, is often used as a synonym with the securities market or the securities industry of Tokyo or Japan while being on par with Wall Street in the US or the City of London in the UK..

The following is the history of Kabuto-cho.

Kabuto-cho in the Edo era (1603 to 1867)

The Kabuto-cho district before the Edo era was a swampy area matted with thatches and seawater from Edo bay came in at high tide.

Ieyasu Tokugawa, who gained an overwhelming victory at the Battle of Sekigahara (1600), planned to build Edo castle. However, a vast extent of land was needed to build a port for large vessels carrying building materials as well as many lumberyards. Then, Ieyasu ordered military commanders across the country to level Mount Edo Kanda (Suruga-dai) to fill in part of Edo bay.

The current Kabuto-cho district was created by the reclamation conducted at the beginning of the Edo era.

Afterwards, the mansions of feudal lords who were intimate with the Tokugawa family were located around the Kabuto-cho district. There was an extensive villa owned by Makino Sanukino-kami in the neighborhood of the current Tokyo Stock Exchange. Its garden was numbered as one of the greatest gardens in Edo, the present Tokyo.

Kabuto-cho in the Meiji era (1868 to 1912)

In September 1871, the land surrounding the present Tokyo Stock Exchange was named "Kabuto-cho" after being bestowed to Mitsui and other "Zaibatsu" (Japanese conglomerates) as rewards of the Meiji Restoration (1864 to 1871). "Kabuto-cho" was said to be named after Kabuto-zuka (Kabuto Mound) which was in the villa of the Makino family in the Edo era (please refer to "History of Kabuto Shrine" for Kabuto-zuka).

While the new government set up after the Meiji Restoration introduced the system of establishing stock companies as a measure to encourage the growth of industry, it floated various kinds of government bonds including former public bonds and salary bonds to abolish feudal aspects of the economy. As trading of these public bonds became gradually active, there was rising momentum to establish trading institutions. On May 4, 1878, the government enacted a Stock Exchange Ordinance. On May 10, Eiichi Shibusawa, Younosuke Mitsui and other influential tycoons in the business circle of Tokyo applied for the establishment of stock exchanges under the ordinance before receiving a license from Finance Minister Shigenobu Ookuma on May 15. This was the birth of Tokyo Stock Exchange, Inc. Its operations were launched on June 1, 1878.

After the establishment of Tokyo Stock Exchange, the government and private sector people like Shibusawa established commercially important companies and modern limited companies in Kabuto-cho, which gave the town a new look as a business center.

Kabuto-cho in the Taisho era (1912 to 1926)

Page boys in kimono were often seen running errands for securities companies and taking sell and buy orders at Tokyo Stock Exchange, for telephones were rare in Kabuto-cho in the Taisho era.

Around 1921, however, employees gradually stopped wearing kimono as those who entered the stock trading floor were forbidden to wear kimono as a frontrunner in local shopping areas around Nihombashi.

After the Great Kanto Earthquake (1923) burnt away the whole district of Kabuto-cho including the building of Tokyo Stock Exchange, quakeproof and fire-resistant buildings went up one after another from around 1926 and Kabuto-cho was reincarnated as a completely modern town

Kabuto-cho in early Showa era (1926 to 1989) and during / after the wars

For a while after the Showa period began, Japan suffered from global depressions and the Japanese economy fell into a long running slump while repeated stock price crashes hit Kabuto-cho, making the town more stagnant.

With the Manchurian Incident in 1937, the Japanese economy was controlled under a war regime and the securities market was predominantly controlled by the government. In June 1943, 11 stock exchanges across the country were merged into a new "Japan Securities Exchange" which was a semi-governmental public organization. The aggravating war situation immediately deprived the sparkle of Kabuto-cho.

In the postwar era, the General Headquarters of the Allied Forces prohibited the stock exchange from resuming operations, however, at a corner of Kabuto-cho, semi-organizational collective transactions were started by securities companies. Kabuto-cho was instantaneously resurrected as "a town of securities".

Meanwhile, in addition to discharging a great deal of shares which were frozen after the breakup of "Zaibatsu", securities democratization and promotions took place across the nation in an effort to diffuse knowledge about securities. In April 1948, a new Securities Exchange Law which had a basic philosophy of protecting investors was enacted. On April 1, 1949, Tokyo Stock Exchange as a membership organization was finally created and its operations were resumed on May 16.

SFE Corporation Limited

SFE Corporation Limited provides exchange-traded and over-the-counter financial services to institutions throughout the Asia-Pacific region and globally through its operating subsidiaries Sydney Futures Exchange Limited, SFE Clearing Corporation Pty Ltd and Austraclear Limited. On 25 July 2006 SFE Corporation Limited merged with the Australian Stock Exchange Limited, making the combined entity the ninth largest listed exchange in the world which offers an integrated suite of products and services covering cash and derivatives markets.

DHAKA STOCK EXCHANGE

The Necessity Of Establishing A Stock Exchange In The Then East Pakistan Was First Decided By The Government When, Early In 1952.It Was Learnt That The Calcutta Stock Exchange Had Prohibited The Transactions In Pakistani Shares And Securities. The Provincial Industrial Advisory Council Soon Thereafter Set Up An Organizing Committee For The Formation Of A Stock Exchange In East Pakistan. A Decisive Step Was Taken The Second Meeting Of The Organizing Committee Held On The 13th March ,1953. In The Cabinet Room, Eden Building ,Under The Chairmanship Of Mr. A . Khaleeli, Secretary Government Of East Bengal , Commerce, Labor And Industries Department At Which Various Aspects Of The Issue Were Discussed In Detail. The Then Central Governments Proposal Regarding The Karachi Stock Exchange Opening A Branch At Dhaka. , Did Not Find Favour With The Meeting Who Felt That East Pakistan Should Have An Independent Stock Exchange . It Was Suggested That Dhaka Narayanganj Chamber Of Commerce & Industry Should Approach Its Members For Parchase Of Membership Cards At RS.2000 Each For The Proposed Stock Exchange. The Location Of The Exchange It Was Thought Should Be Either Dhaka Narayanganj Or Chittagong . An Organizing Committee Was Appointed Consisting Of Leading Commercial And Industrial Personalities Of The Province With Mr. Mehdi Ispahani As The Convener In Order To Organize The Exchange.

The Chamber Informed Its Members And Members Of Its Affiliated Associations Of The Proceedings Of The Above Meeting ,Requesting Them To Intimate Whether They Were Interested In Joining The Proposed Stock Exchange. This Was Followed By A Meeting , At The Chamber Of About 100 Persons Interested In The Formation Of The Exchange On 07.07.1953. The Meeting Invited 8 Gentleman To Become Promoters Of The Exchange With Mr. M Mehdi Ispahani As The Convener And Authorized Them To Draw Up The Memorandum And Article Of Association Of The Exchange And Proceed To Obtain Register Under The Companies Act.1913. The Other 7 Promoters Of The Exchange Were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr. A C Jain, Mr. A K Khan , Mr M Shabbir Ahmed And Mr. Sakhawat Hossin.

It Was Also Decided That Membership Fee Was To Be Rs.2000 And Subscription Rate At 15 Per Month. The Exchange Was To Consist Of Not More Than 150 Members. A Meeting Of The Promoters Was Held At The Chamber On 03.09.1953 When It Was Decided To Appoint Orr Dignam & Co., Solicitors To Draw Up The Memorandum And Articles Of Association Of The Stock Exchange Based On The Rules Of Stock Exchange Existing In Other Countries And Taking Into Account Local Conditions.

The 8 Promoters Incorporated The Formation As The East Pakistan Stock Exchange Association Ltd. On 28.04.1954. As Public Company.On 23.06.1962 The Name Aws Revised To East Pakistan Stock Exchange Ltd. Again On 14.05.1964 The Name Of East Pakistan Stock Exchange Limited Was Changed To "Dhaka Stock Exchange Ltd."

At The Time Of Incorporation The Authorized Capital Of The Exchange Was Rs. 300000 Divided Into 150 Shares. Of Rs. 2000 each and by an extra ordinary general meeting adopted at the extra ordinary general meeting held on 22.02.1964 the authorised capital of the exchange was increased to Tk. 500000 divided into 250 shares of Tk. 2000 each. The paid up capital of the exchange now stoods at Tk.460000 dividend into 230 shares of Tk. 2000 each. However 35 shares out of 230 shares were issued at TK. 80,00,000 only per share of TK. 2000 with a premium of TK. 79,98,000 .

Although incorporated in 1954, the formal trading was started in 1956 at Narayanganj after obtaining the certificates of commencement of business. But in 1958 it was shifted to Dhaka and started functioning at the Narayangonj chamber building in Motijheel C/A.

On 1.10.1957 the stock exchange purchase a land measuring 8.75 Kattah at 9F Motijheel C/A from the Government and shifted the stock Exchange to its own location in 1959.

Swaziland Stock Exchange (SSX)

A move towards a formal structure for capital markets development in Swaziland goes back 12 years (1989) when a working party, under the direction of the Central Bank, was commissioned to examine if there were economic benefits to be derived from the establishment of a stock exchange. The working party concluded that there was indeed a need and an opportunity for such a move; and proposed, as a first step, the formation of a stockbroking company, which would be licensed under existing banking legislation pending the drafting of a securities law. For eight years the stock market operated as an over the counter-single broker facility. It was not until July 1999 that a fully-fledged stock exchange, the Swaziland Stock Exchange (SSX), was inaugurated. Exchange operations are conducted under the supervision of the Capital Markets Development Unit (“the Unit”) of the Central Bank, which has regulatory oversight over the operations of the market. The Unit was formed in 1999. It does not only oversee the operations of the Exchange but authorises and supervises collective investment schemes and fund managers. When the legislation is eventually passed, the Unit will also assume responsibility for the licensing, registration and regulation of dealers and their representatives, investment advisers and their representatives and central securities depositories.
Structure
The Exchange is made up of various members (including listed companies, stockbrokers, and institutional investors) and is regulated by a Committee of the Exchange. The Committee consists of two representatives from licensed stockbrokers, one representative from the Central Bank who acts as chairperson, one representative from the listed companies, a representative from institutional investors and a representative from transfer secretaries. A representative from the Capital Market Development Unit serves as secretary to the Committee.

The JSE Ltd (“JSE”)

The JSE Ltd (“JSE”) is licensed as an exchange under the Securities Services Act, 2004 and Africa’s premier exchange. It has operated as a market place for the trading of financial products for nearly 120 years. In this time, the JSE has evolved from a traditional floor based equities trading market to a modern securities exchange providing fully electronic trading, clearing and settlement in equities, financial and agricultural derivatives and other associated instruments and has extensive surveillance capabilities. The JSE is also a major provider of financial information. In everything it does, the JSE strives to be a responsible corporate citizen.

The Stock Exchange of Mauritius Ltd (SEM)

SEM at a glance

The Stock Exchange of Mauritius Ltd (SEM) was incorporated in Mauritius on March 30, 1989 under the Stock Exchange Act 1988, as a private limited company responsible for the operation and promotion of an efficient and regulated securities market in Mauritius. Since October 6th, 2008, the SEM has become a public company, and over the years the Exchange has witnessed a significant overhaul of its operational, regulatory and technical framework to reflect the ever-changing standards of the stock market environment worldwide. SEM is today one of the leading Exchanges in Africa and a member of the World Federation of Exchanges (WFE).

The SEM operates two markets: the Official Market, the Development & Enterprise Market (DEM). The Official Market started its operations in 1989 with five listed companies and a market capitalisation of nearly USD 92 million. Currently, there are 40 companies listed on the Official Market representing a market capitalisation of nearly US$ 3,131.55 million as at 30 January 2009. The DEM has been launched on 4 August 2006 and there are presently 49 companies listed on this market with a market capitalisation of nearly US$ 1,125.61 million as at 30 Janaury 2009.

The stock market was opened to foreign investors following the lifting of exchange control in 1994. Foreign investors do not need approval to trade shares, unless investment is for the purpose of legal or management control of a Mauritian company or for the holding of more than 15% in a sugar company. Foreign investors benefit from numerous incentives such as revenue on sale of shares can be freely repatriated and dividends and capital gains are tax free.

Over the years, our efforts have been be geared towards ensuring that the SEM remains at the forefront of institutional reform and development while offering quality services to its stakeholders and contributing to the deepening and broadening of the financial sector in Mauritius. Much of our focus has been geared towards updating the current operational and regulatory framework to reflect the ever-changing standards of the Stock Exchange environment worldwide and the requirements of the Securities Act 2005.

The successful implementation of the Central Depository System (CDS) in January 1997 has brought about prompt, efficient clearing and settlement of trades and at the same time reduced some of the inherent risks in the process. With the support of the Bank of Mauritius which acts as clearing bank, CDS ensures delivery versus payment (DVP) on a T+3 rolling basis. The CDS also provides for a Guarantee Fund Mechanism to guarantee settlement failures of participants.

SEM's Automated Trading System (SEMATS) was launched on 29th June 2001. It constitutes a state-of-the-art electronic trading system built on third generation technology. SEMATS puts an end to traditional trading patterns which have typified the Stock Exchange of Mauritius since its inception. Trading in securities is conducted through dedicated trading workstations located at intermediate dealers and linked by communication lines to the SEM trading engine.

Similarly, the trading of treasury bills on the market has been introduced by the SEM in December 2003, a first step of a process aimed at the setting up of an active secondary market for government instruments. New listing rules are underway in the setting up of an appropriate operational and regulatory framework to cater for the listing of offshore funds and international products.

The attainment of Membership status of the World Federation of Exchanges (WFE) in November 2005 also constituted an important milestone that has enabled the SEM to join the league of stock exchanges that are compliant with the stringent standards and market principles established by the WFE. The latter is a central reference point and standards setter for exchanges and the securities industry in the world. Membership identifies the SEM as having assumed the commitment to prescribed business standards, recognized as such by users of exchanges, as well as by regulators and supervisory bodies.

SEM's most recent undertaking concerns the setting up of the Development & Enterprise Market (DEM), which is a market designed for Small and Medium-sized Enterprises (SME’s) and newly set-up companies which possess a sound business plan and demonstrate a good growth potential. It is meant for companies wishing to avail themselves of the advantages and facilities provided by an organised and regulated market to raise capital to fund their future growth, improve liquidity in their shares, obtain an objective market valuation of their shares and enhance their overall corporate image.The DEM is also in line with Government's policy to foster the development of a dynamic business environment in Mauritius and the emergence of a diversified financial services sector where companies can raise financial resources from a variety of sources and where investors can have access to a wider array of investment opportunities.

One of the key challenges of the Exchange during the next few years will be to increase the range of products available to investors. In the wake of the bull phase during the last three years on the local front as well as on the African continent, investors have been looking for investment opportunities in new stocks and/or in new products. We are hopeful that the launching of the DEM will somehow address some of the needs of investors.

The prevailing stellar performance of African stock markets is being driven by strong foreign investor interest, and such influx of foreign investors is being viewed as a statement of confidence for African bourses. In this light, we also intend to step up our efforts to place the Stock Exchange of Mauritius on the radar screen of institutional investors who are keen on frontier emerging markets that are well regulated and adhere to international best practice.

The SEM has made some important strides in its development process since 1989 and looks well poised to undertake a number of reforms in order to contribute towards the enhancement of the operational and regulatory efficiency of the local market. In the forthcoming years, the SEM aims at consolidating its position with a view to further contributing to the development of the Mauritian economy and of capital market activities on the national and regional fronts.

The Malawi Stock exchange (MSE)

Company Profile

Background
The Malawi Stock exchange (MSE), has been in existence since 1994 but started equity trading in November 1996 when it first listed National Insurance Company Limited (NICO). Prior to the listing of the first company, the major activities that were being undertaken were the provision of a facility for secondary market trading in Government of Malawi bonds namely, Treasury Bills and Local Registered Stocks. The MSE operates under the Capital Market Development Act 1990 and the Companies Act, 1984. The regulatory legislation of the Stock Exchange will be the Securities Act, which is in its draft form awaiting passing into Law by Parliament.

EGYPTIAN STOCK EXCHANGE

During one of their informal turn of the century meetings at the Café New Bar, Cairo's merchants and brokers were reminded once more by their leader, Monsieur Maurice Cattaui, that the time had come for Cairo to follow Alexandria's example and have its own Bourse. With the number of limited liability companies reaching 79 at an aggregate capital of 29 million pounds, the city's taipans could no longer conduct pork barrel politics on Cairo's sidewalks or inside coffee shops and hotels. And so it was when on Thursday, 21 May 1903, an ad hoc site committee presided by Maurice Cattaui Bey, chose the old premises of the Ottoman Bank (today Groppi-Adly Branch) on Maghraby Street as the elected but temporary official headquarters of the newly incorporated Bourse and Banking Company of Egypt Limited . a.k.a. Bourse Khediviale du Caire.

With ambitious plans in mind, the new company leased the premises for a non-renewable period of six years at an annual rent of 400 Egyptian pounds. In the meantime, an international competition was initiated for the design of a dedicated bourse to be situated at the center of Cairo's European district of Ismailia, not far from the National Bank of Egypt (today Central Bank).

The prize for best design went in April 1907 to the French award-winning architect Raoul Brandon (designer of the Cairo Orosdi-Back department store). The timing couldn't have been better, or so everyone thought. Emboldened by success and drunk on growth, the promoters of the Cairo bourse were in an excessive mood. It was public knowledge that when lumped together, the Cairo and Alexandria Bourses rated among the world's top five Stock Exchanges. Egypt's economy was at an all-time high and the number of companies traded in the Cairo Bourse alone had reached 228 with a combined capital of 91 million pounds. Seventy-three brokers and intermediaries were on hand to take care of the spiraling share trading. The modest premises on Maghraby Street had most certainly outlived its usefulness. It was time for swank

But like the swing of a pendulum, the high state of euphoria disappeared overnight. Prudence having given way to high-risk speculation, what had started out with a real estate boom in Egypt, ended in what became known in the annals of speculative history as the Crash of 1907.

Some historians concede that the money panic of 1907 started in Alexandria, Egypt, with the failure in July of a large bank - Cassa di Sconto. Japan was hit next, then Germany, then Chile. By October, the fallout reached Europe and the United States. In Egypt, the overextended banks folded up one after the other. As share prices plummeted, soon enough, a by now jobless broker, Mr. Alfred Nahman, was appointed chief liquidator of the Bourse and Banking Company of Egypt Limited.

Eighteen months after Brandon's publicized award to build the Bourse that never was, the Corporation of Agents de Change commissioned the Cairo firm of Edward Matasek and Maurice J. Cattaui with the participation of Ernest Jaspar, to design and erect an Exchange Building.

Adorned with Matasek's trademark accouterments of Hermes masonic busts and ornate stucco, the resultant edifice was the handsomest building on the block. At long last Cairo had a real trading floor, surrounded by a high gallery from where share trading could be observed by the concerned public. The building, which stands opposite the French consulate, was occupied in turn by Lloyds Bank, the British Chamber of Commerce, the National Bank of Egypt and now by the Watany Development Bank.

Trading had hardly started on April 30th, 1909 at Sharia al-Borsa al-Gedida or New Bourse Street when it was announced that Egypt's leading laissez-faire banker-industrialist, Raphael Suares , had died. The bourse closed for the rest of the day. It was largely thanks to his efforts that Cairo had had a bourse in the first place. In view of his untimely death, Suares missed by a few months, the imposition of the first ever bourse regulations.

It was in 1928, a year before the Wall Street crash, that the Cairo Bourse moved into its present premises on Sherifein Street. The art nouveau building with its multiple neo-Doric colonnades was designed by French architect George Parcq who was responsible for much of Cairo's elegant buildings including Sednaoui's department store on Midan Khazindar. Serendipity or not, the site on which Sednaoui was built had once been the first meeting place for Cairo's speculative traders prior to the formation of Cairo's first the bourse.
Since he had already died in 1924 Monsieur Moise Cattaui, the original promoter of the Cairo Bourse, had no way of knowing that four years after his departure the bourse would relocate on part of what had once been his Cairo palace. In its heyday, Palais Cattaui extended from the National Bank of Egypt all the way to Midan Soliman Pasha (now Talaat Harb). As though a reminder for his capital efforts, the Cairo Bourse is to this day flanked by two side streets, one of them named after Moussa Cattaui Pasha.

Before it folded up in July 1961 following the state-sanctioned demise of Egypt's private sector, the Cairo & Alexandria Bourses (they had already merged) was listed fourth in the world.

Almost thirty-six years later, in a new era of economic re-structuring, it is now up to the Tigers on the Nile to restore the Cairo Bourse to its former ranking.

Bourse founding members in 1903:
Maurice Cattaui Bey president, Arbib, Cookson, Gennaropoulo, Oziol, McGillivray. Adolphe Cattaui (rep. Courtier en Marchandises) and A.K. Reid (rep Courtier en Valeurs) plus representative each from Credit Lyonnais, Bank of Egypt, Imperial Ottoman Bank, Anglo-Egyptian Bank and the National Bank of Egypt. ). Secretary: Boutigny

Brief History of Alexandria Stock Exchange:

During the 19th century, ALEXANDRIA's FUTURES MARKET is one of the oldest in the world. The first local recorded cotton transaction took place in 1885 in Alexandria's Café de l'Europe on Place des Consuls which was later renamed Mohammed Ali Square. It was there that cotton merchants met and cut deals based on supply and demand for the long staple Karnak and Menouf or the short to medium staple Ashmouni, Giza and Zagora. Over the years, deals extended to cotton seed varieties such as Hull, Afifi and Sakellaridis.

The first cotton deal-makers eagerly waited for the weekly arrival of the news-sheets from Europe to guide future operations. Reputation counted for everything. Cotton growers who delivered on time were courted by exporters and received large orders the following season. Timing and reliability was of the essence if profits were to be made.

From Café de l'Europe cotton deal-makers moved to a nearby building and as business grew, the Association Cottoniere d'Alexandrie (later the Alexandria General Produce Association or AGPA) was created for the purpose of trading in cotton, cotton seeds and cereals in the spot and future markets.

In 1899, during the reign of Khedive Abbas Hilmi II, AGPA moved to an imposing new building, henceforth called The Bourse on Mohammed Ali Square. The Alexandria Bourse became a city landmark featuring in postcards, books and city guides. In more ways than one, the bourse became the focal point of the city's financial community. The Association's old premises mean while, was transformed into a bank, and later on into the Top Hat night club.

Cotton forward contracts were legalized in 1909 to coincide with Egypt's recovery from a massive economic slump brought on by the financial crash of 1907 when banking and real estate institutions collapsed due to excessive speculation. So far, government intervention had been practically absent. On the other hand, the spot market of Minet al-Bassal was left alone until 1931.

Of the 35 registered cotton brokers in 1950, only two were Egyptians. Likewise, the directors of the Alexandria bourse were an uneven mixture of Egyptians, Levantine and Jews. It's veteran president was a Syrian, Jules Klat Bey. Despite its ethnic mixture AGPA had come a long way from when Britons controlled it through two of Alexandria's largest cotton exporters, the Carver and the Moss families. And when a Carver scion married the Moss heiress, they held an even stronger grip on this lucrative export market. Similarly, cotton ginning mills were controlled in great part by foreigners. Foremost among them last century were Selig Kusel from Manchester, the Plantas from Liverpool, the Lindemann's from Prague and Dresden, and the Choremi-Benachi-Savagos representing the Greek Connection.

Up until the 1950's most of the trading was done with the Liverpool Cotton Exchange evidencing Egypt's strong ties with the waning British Empire. Not unlike oil today, Egyptian cotton trade had invariably been politicized during the inter-war period figuring as a clause in most of Egypt's international agreements. It was a major bargaining tool as well as a collateral for Egypt's currency. The powerful Manchester trade relied heavily on this staple which was responsible for untold fortunes made in the UK

There were also the Joint Egyptian Cotton Committee and the Cotton Institute, two highly respected institutions affiliated with the International Cotton Congress. With time, more and more Egyptians entered the trade once the jealously guarded preserve of the Finneys, the Rheinharts, the Rolos, the Cicurels and Pintos. Newcomers included Talaat Harb Pasha, a founder of the Banque Misr group of companies, and Mohammed Farghaly Pasha, president of the Alexandria Cotton Exporters Association. On the expert side, there was Ahmed Abdel Wahab Pasha, a former minister of finance, and Fouad Abaza Pasha the director of the Royal Agricultural Society.

Just as the native intelligentsia was to have its turn at the helm, agricultural trade was brought within the aegis of the state through a series of 1950s agrarian reform laws. Henceforth, the agricultural sector mutated into unprofitable small holdings and bureaucratic cooperatives.

About MBendi

About MBendi MBendi Information Services (Pty) Ltd is a privately owned Internet business publishing company founded in 1995 and based in Cape Town, South Africa. The company uses the Internet to support business and political decision makers worldwide. The MBendi website and E-mail newsletters assist organisations to find and research potential opportunities and partners. At the same time, MBendi helps providers of products and services to reach decision makers in a cost-effective way. While MBendi’s scope includes all the regions of the world and all industry sectors, our main focus is on energy, mining, travel, trade and the developing world, especially Africa. Our newsletter commentary addresses issues relevant to the future of both the developed and developing worlds, while our online Finance Application System provides applicants with access to corporate, project and trade finance. Each month the MBendi website is used by some 250,000 visitors, while the twice monthly MBendi newsletter is sent to a readership of nearly 100,000. Although the demographics change from month to month, these audiences are generally located in Africa (46%), Asia Pacific (20%), Europe (18%) and North America (15%). Our readers are mostly managers and professionals from organisations large and small. They are influential in their organisations while, in their personal capacities, they are high net worth individual investors, travelers and consumers. Advertising is MBendi’s main source of revenue. At any time, more than 100 companies, of all sizes and from around the world, advertise in our website and newsletters in order to reach these audiences. We provide a range of innovative advertising solutions to suit all budgets with special emphasis on measuring the results obtained to ensure our clients’ objectives are achieved. Many of MBendi’s clients repeat their advertising year after year. MBendi’s directors have extensive worldwide experience of strategic management, information systems, the world energy industry and African business. Over the years MBendi's activities have received considerable publicity in the local and international press. Several thousand websites around the world, including those of the World Bank and G8 governments, include links to the MBendi website. Earn and Learn, conducted with the University of Cape Town, is an ongoing project to develop the business skills of students from deprived backgrounds. MBendi enjoys Level 4 BEE status under South African law.

Financial Wisdom From Three Wise Men

Some of us are more disciplined than others. Shortly after we are born, we start to learn the rules of life. Some of these rules we had to learn the hard way, through trial and error. Others we learned from our parents. Learning from others in this way is often easier, however, we seem to do a better job of remembering the lessons we learn the hard way. As investors, we have a choice. We can learn the hard way and hope that we'll survive our lessons and not run out of money, or we can learn from the following three wise men.
Three wise men - Warren Buffett, Dennis Gartmen and Puggy Pearson - found very different methods to achieve financial success, but they all share a common trait - their success came by following a strict set of rules. In this article we'll show you nine rules that three wise investors live by.

The World’s Greatest Investor
Warren Buffett, the "Oracle of Omaha," is considered by many to be the greatest investor ever. He is also known for giving much of his $40 billion fortune to the Bill & Melinda Gates Foundation, which is dedicated to bringing innovations in health and learning. Buffett is primarily a value investor that closely follows Benjamin Graham's investing philosophy after having worked at Graham's firm, Graham-Newman. (To read more about Buffett, see Warren Buffett: How He Does It and What Is Warren Buffett's Investing Style?)

Buffett has several excellent investing rules. You can read about many of them in his company's (Berkshire Hathaway) annual reports, which are an excellent source of investing knowledge.

Here are three of Buffett's rules:

1. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
   If you lose money on an investment, it will take a much greater return to just break even, let alone make additional money. Minimize your losses by finding quality companies that are temporarily selling at discounted prices. Then follow good capital management principles and maintain your trailing stops. Also, sitting on a losing trade uses up time, money and mental capital. If you find yourself in this situation, it is time to move on.
   
2. The stock market is designed to transfer money from the active to the patient.
   The best returns come from those who wait for the best opportunity to show itself before making a commitment. Those who chase the current hot stock usually end up losing more than they gain. Remain active in your analysis, look for quality companies at discounted prices and be patient waiting for them to reach their discounted price before buying.
   
3. The most important quality for an investor is temperament, not intellect.
   You need a temperament that neither derives great pleasure from being with the crowd or against it. Independent thinking and having confidence in what you believe is much more important than being the smartest person in the market. Most of the time, the best opportunities are found when everyone else has given up on the stock market. Over-confidence and emotion are the enemies of a high quality portfolio.

The Great Trader Gartman
In the October 1989 issue of Futures magazine, Dennis Gartman published 15 simple rules for trading. He is a successful trader who has experienced the gamut of trading from winning big to almost losing everything. Currently, he publishes The Gartman Letter, a daily publication for experienced investors and institutions.

Here are three of Gartman's best rules:

1. There is never one cockroach.
   When you encounter a problem due to management malfeasance, expect many more to follow. Bad news often begets bad news. Should you encounter any hint of this kind of problem, avoid the stock and sell any shares you currently own. (For related reading, see Evaluating A Company's Management, Get Tough On Management Puff and Putting Management Under The Microscope.)
   
2. In a bull market only be long. In a bear market only be short.
   Approximately 60% of a stock's move is based on the overall move of the market, so go with the trend when investing or trading. As the saying goes, "The trend is your friend."
   
3. Don't make a trade until the fundamentals and technicals agree.
   Fundamentals help to find quality companies that are selling at discounted prices. Technical analysis helps to determine when to buy, the exit target and where to set the trailing stop. A variation of this is to think like a fundamentalist and trade like a technician. When you understand the fundamental reasons that are driving the stock and the technicals confirm the fundamentals, then you can make the trade. (For more insight, see Fundamental Analysis For Traders and What Can Traders Learn From Investors?)

The Gambler
The wisdom of the late two-time champion world poker player Puggy Pearson offers our last set of rules to follow. "Only three things to gamblin'," Puggy once said, "knowing the 60/40 end of a proposition, money management and knowing yourself." Well, those rules apply to investors too.

Here are Pearson's all-encompassing rules:

1. Knowing the 60/40 end of a proposition
   Understanding the odds of drawing a winning hand is essential to poker. The 60/40 bets are those that offer the best chance of winning given all the options available. If you only play hands that have these odds or better, the statistics are on your side.
   
   As investors, we should strive to put the odds in our favor with every trade. Finding the best 60/40 opportunities takes time and research, as there are many ways to find good candidates. These can be identified through individual stock selection, top-down or bottom-up approaches, technical or fundamental analysis, value-based pricing, growth-oriented, sector-leaning or whatever approach works best for a particular investor. The point is that investors must be constantly working toward finding and recognizing opportunities as they present themselves. Once you have been dealt the right cards, it's time to take the next step.
   
2. Money Management
   Managing money is an ongoing process. The first tenet is to minimize losses on each opportunity. Fortunately, investors do not have to ante up to play, as in poker, though investors must work hard to find good opportunities. Once you have a good hand, it is time to decide how much money to commit to the opportunity.
   
   While much is written on this topic, let's keep it simple. Basically it is a risk-reward decision. The more money you commit, the greater the possible reward and the higher the risk of losing some of that money. However, if you do not play, then you cannot win. (For more on this, see Determining Risk And The Risk Pyramid.)
   
   Basically, when the best opportunities present themselves, it is usually wise to make a significant commitment. For good (but not great) opportunities, committing smaller amounts makes sense as the potential reward is less. As in poker, most of an investor's money is made in small increments with the occasional big win coming along every once in a while. This requires that an investor evaluate each opportunity compared to others that have shown themselves in the past. Experience is an excellent teacher. Finally, investors can use a stop-loss strategy to mitigate greater losses should their assessment of the opportunity prove to be wrong. Too bad gamblers don't have such a tool! (To read more, see The Stop-Loss Order - Make Sure You Use It.)
   
3. Knowing Yourself
   The last gambling rule, knowing yourself, means doing everything you can to stick to your discipline. Everyone wants to get on with it to make the next trade, but if that opportunity does not fit within your measure of a good 60/40 opportunity, then you must force yourself to pass. While you will miss some good gains, this will also save you from some hefty losses. Following your discipline is essential for success as a gambler as well as an investor. You must be extraordinarily patient in your search for the right opportunities and then aggressively go after the best ones.

Conclusion
Each of these three wise men excels by following his rules. In this way, they have succeeded where many others have failed. While we might not be as wise as these three men, we can learn from the best.

The Frosty, Festive World Of Investing

The store windows are frosted with artificial snow, the eggnog is flowing, and frantic shoppers are crowding the malls - that's right, it's Christmas time. In keeping with the yuletide spirit, let's take a look at the investing vocabulary that goes along with this credit card-shattering time of year.
Santa Claus Rally
He's bearded, he's jolly and he's permanently associated with Coca-Cola - yep, that's Santa Claus. Santa's origins are a matter of speculation, but according to popular belief, he is derived from a Dutch mythical character based on the historical figure Saint Nicholas, who supposedly gave presents to the poor. The modern-day Santa spends his time spreading cheer and promoting world peace by delivering gifts all over the globe.

In the investing world, Santa brings investors a "gift" in the form of a jump in the price of stocks, known as the Santa Claus rally. This rally usually occurs between Christmas and New Year's day. There are many theories as to why this happens. Some people believe it is a result of year-end tax considerations, while others say it's because all the market pessimists are away on holidays or because people are buying stock in anticipation of the January effect. Those of us who believe in the magic of Christmas think the rally may be due to seasonal cheer infecting the usually dour inhabitants of Wall Street - a true Christmas miracle.

Boston Snow Indicator
In 1942, Irving Berlin wrote a song called "White Christmas", which Bing Crosby brought to life in an immensely popular recording. Since then, a snowy landscape is the ideal place to spend Christmas day.

The Boston snow indicator is a market theory that posits that a white Christmas in Boston will cause stock prices to climb. This is one of several dubious indicators that, while it may appear to be accurate, teaches us more about the fallibility of statistics than the behavior of the market. Other popular indicators of this sort include the skirt-length indicator and the attention paid to the ties worn by Alan Greenspan (the Federal Reserve Board's former chairman). The accuracy of the Boston snow indicator is perhaps best summed up by its nickname: "BS indicator". (To read more, see Economic Indicators To Know.)

Elves
In contemporary tales of Santa Claus, the man in red uses an army of small, spry laborers to produce the incalculable amount of toys needed to supply all of the world's children. Elves' most recognizable features are the pointed tips of their ears and their sunny dispositions.

In the investing world, elves are the technical analysts who try to predict the direction of the market. More specifically, the term refers to the guests appearing on the PBS television show "Wall Street Week". The elves of Wall Street are not exactly spry, nor do they have pointed ears, but they do seem to have an unfaltering sense of optimism. (To read more, see Elves And Gnomes: A Fairytale World Of Investing.)

Evergreen Funding/Loan
The origin tales of the Christmas tree are as varied and conflicting as those of any of the other Christmas traditions. It is said that the Romans often cut down a fir tree to keep in their houses during the sparse winter months as a form of appeasement to the goddess Ceres (originally Demeter, Greek goddess of the hearth). In the 1500s, Germany became the first nation to associate evergreens, trees that stay green year-round, with the Christian celebration. Martin Luther, founder of the Lutheran branch of Christianity, is fabled to have set up the first Christmas tree lit by candles. Since the late-eighteenth century, Christmas trees have become part of the secular Christmas celebration, and millions of trees - both artificial and real - are purchased every year.

There are two types of evergreens in the business world. For those in the United Kingdom, the term refers to the gradual infusion of capital into a new or recapitalized enterprise. Evergreen funding, like its namesake, is a source of capital that is forever green, in that it is continually replenished. This can take many forms: for example, government assistance or even help from an angel investor. Evergreen funding is very rare in the world of business. For Americans, an evergreen loan is a short-term loan that is continually renewed rather than repaid. This allows people or businesses to defer repayment until they have the funds to do so. But beware: an evergreen loan is not always the gift that it appears to be. (For further reading, see When Companies Borrow Money and Debt Reckoning.)

January Effect
For most people, January is a time of optimism regarding hastily formed resolutions. The fitness industry has an entirely separate type of January effect that sees a spike in sales of home exercise equipment, diet programs and gym memberships. This is followed by the spring slump, when membership cancellations and returned products cause a significant drop in profits.

The January effect is also a stock market phenomenon that occurs at the end of the year as investors begin to fret over taxes. Investors whose portfolios have been very successful may sell any stocks that are down. This locks in the loss and allows the investor to write it off against his or her capital gains. When enough investors do this simultaneously, it causes stocks to go down near the end of the year. However, the stocks are driven back up in January when investors buy back the stocks they sold. The January effect is said to affect small caps more than mid/large caps, but it has not happened in years because the markets have adjusted for the effects. Also, more people are using tax-sheltered retirement plans. The tax shelters remove any reason for selling in order to create a tax loss. Thus, in recent years, the January effect has become somewhat of a non-event - much like the tradition of making New Year's resolutions. (For more insight, read Understanding Investor Behavior.)

That's it for our look at all things frosty and festive on Wall Street. Now, grab yourself a cup of eggnog, relax in front of the fire and fall asleep with dreams of robust ROIs dancing in your head

9 Tips For Safeguarding Your Accounts

Wisely managing your investments includes taking advantage of all possible protections. While you may already be aware of the Federal Deposit Insurance Corporation (FDIC) insurance for your bank-deposited funds, there are other ways to divide up your funds, lower your potential risk of loss and guarantee your money's safety. Read on for some ways to keep your money safe that you may want to consider in a bear market. (For background reading, see Are Your Bank Deposits Insured?)

No.1: Use a brokerage account to invest in brokered CDs.
By opening an account with a brokerage firm you can invest in brokered CDs. These are typically CDs with large denominations, which are issued by banks to brokerage firms for their customers' investments. Brokers "pool" investors' funds to purchase the CDs, enabling investors to get a share in larger CDs (with potentially higher interest rates) than what they would be able to access by investing on their own. Brokered CDs also allow investors to buy multiple CDs issued by different banks and qualify for FDIC coverage for each CD held.
Before investing in brokered CDs be sure that:

• You understand the terms and features of each CD you invest in
• The bank offering the CD is an FDIC-insured bank
• You don't invest in a CD offered by a bank where you already hold accounts (because you may inadvertently exceed the FDIC insured limit)
• You get documentation of your ownership (or partial ownership) of the CD from your broker (i.e. a copy of the CD's title) to ensure that you qualify as a depositor for the FDIC coverage. (To learn more, read Are Your Bank Deposits Insured?)

No.2: Bank with a credit union that carries private excess share insurance.
Some credit unions that are members of the National Credit Union Association (NCUA) carry excess share insurance to provide members with additional coverage for their deposit accounts. For example, American Share Insurance provides an additional $250,000 for credit union account holders above the NCUA's $250,000 limit. (To read more about credit unions, see Tired Of Banks? Try A Credit Union and Choose To Beat The Bank.)

No.3: Open an account with a DIF- or SIF-insured bank.
The Deposit Insurance Fund (DIF) is a private company headquartered in Massachusetts that provides insurance on deposit accounts for participating state-chartered savings banks. The Share Insurance Fund (SIF) is also a private fund that insures deposit accounts for Massachusetts-chartered co-operative banks. DIF and SIF member banks guarantee depositors' funds above the FDIC limit, regardless of both the FDIC limit and the amount of money held by the depositor. All deposit account types are guaranteed, including savings and checking accounts, CDs, money market and retirement deposit accounts. By providing both FDIC insurance and DIF or SIF insurance, member banks can guarantee that their depositors' funds are fully insured. Once you open a deposit account with a DIF or SIF member bank, there are no additional qualification tests to meet or forms to complete. In addition, you do not need to be a Massachusetts residents to do business with a DIF or SIF member bank.

No.4: Invest in CDs with a CDARS network member institution.
When you invest at least $10,000 in a CD with a Certificate of Deposit Account Registry Service (CDARS) member bank, you can get up to $50 million in FDIC insurance. That's because a CDARS bank can take your large deposit, divide it up into smaller denominations and invest in multiple CDs across the network of member banks, ensuring that you qualify for FDIC insurance protection with each investment at each member bank. By using a CDARS network member bank, you can secure one interest rate on multiple CD investments and choose the maturities that best suit your investment goals. You pay an annual fee for the service and receive one statement summarizing all of your CD investments. (For related reading, see Are CDs Good Protection For The Bear Market?)

No.5: Open an MMAX money market account.
The Institutional Deposits Corporation (IDC) offers the Money Market Account Xtra (MMAX) through its network of participating community banks nationwide to depositors looking for additional FDIC insurance. When you open an MMAX Account, your participating IDC bank uses its relationship with other participating IDC network members to guarantee FDIC insurance for your total account balance up to $5 million. You are limited to making six withdrawals from your MMAX account monthly.

No.6: Research your broker and brokerage firm.
While you are responsible for making and approving decisions related to your investments, it's important to know your broker's, and his or her firm's, record to avoid becoming a potential victim of fraud. You should check into whether your broker is properly licensed and registered and that he or she has not been the subject of investor complaints or investigation. (To learn more, read Broker Gone Bad? What To Do If You Have A Complaint and Evaluating Your Broker.)

No.7: Check for SIPC Protection.
Check to make sure your brokerage accounts are protected by the Securities Investor Protection Corporation (SIPC). SIPC guarantees up to $500,000 of your invested funds (up to $100,000 in cash) in the event that your stocks or securities are stolen by a dishonest broker or the firm holding your investments fails and your assets are found missing. (To learn more, read Are My Investments Insured Against Loss?)

No.8: Know your investment time horizon.
Make sure that money you will need in the short-term is invested in low-risk vehicles such as CDs, T-bills and bonds or bond funds. The closer you are to the time when you will need to access your funds, the less risk you can afford to take that you might lose your principal. (For more insight, read Personalizing Risk Tolerance.)

No.9: Keep good records of all your investment transactions.
If you are concerned that you may be a victim of fraud or if you are simply concerned that there may be inaccurate information on your investment accounts, you will need copies of your account activity to rectify the error(s), file a complaint or take legal action. (To learn more about personal responsibility in the investing process, read Are You A Good Client?)

Conclusion
Investing is never risk-free, but there are ways to reduce your risk and gain additional insurance coverage for your funds. Take the time to protect your funds and your peace of mind by checking out options available beyond FDIC bank deposit insurance.