Quick Takes
New Rules Excite NASD OTC
The management of NASD Plc has said the new rules released by the Securities Exchange Commission (SEC) on trading of unlisted securities last week will eliminate unauthorised operators in the market boost activities in the over-the-counter market.
The unauthorised operators, nicknamed ‘jobbers’ have been brokering unrecorded transactions in the market.However, SEC released the rules along with two others last week.
Commenting on the new rules on trading in the unlisted securities, NASD Plc expressed excitement, saying “it would expand the horizon of publicly tradable securities and opens up a new terrain for the country’s fast growing pension deposits.”
According to NASD Plc , the rules make it illegal to transfer public securities through dark pools and away from the apex regulators oversight.
“They impose a restriction on those who can act as transfer agents – that service can now only be legally carried out by qualified stockbrokers (in good standing with the SEC and NASD OTC). Exciting times lie ahead for our untapped OTC markets. We expect to see greater, transparency in capital market transactions; the continued emergence of a truly globalised stockbroking industry and a much deeper and broader capital market,” NASD said.
The rules provide that all securities of unlisted public companies shall be bought, sold or transferred only by means of a system approved by SEC and under such terms and conditions as the Commission may prescribe from time to time.
“No person shall buy, sell or otherwise transfer securities of an unlisted public company except through the platform of a registered securities exchange established for the purpose of facilitating over-the-counter trading of securities
Goldman Widens Gap in Deal Ranking
Goldman Sachs has opened up a $100 billion lead in this year’s worldwide mergers & acquisition (M&A) league table after grabbing advisory roles on the top four deals in last week’s bumper takeovers. Deals last week the busiest so far this year, were worth $140 billion, lifting year-to-date M&A activity to almost $1 trillion, according to Thomson Reuters data. That is up 25 percent from a year ago and the strongest start to a year since 2007. Goldman advised on deals worth $119 billion that were announced. It worked for Mylan on its offer for Perrigo, BG Group in its takeover by Shell , TNT Express in its $4.3 billion bid from Fedex and Permira Advisers and the Canada Pension Plan Investment Board in its proposed $4.5 billion buyout of Informatica Corp. Goldman has advised on 99 deals worth $305.8 billion so far this year. Bank of America Merrill Lynch has moved up into second spot with deals worth $207.2 billion and JPMorgan slipped to third with $188.8 billion of deals, Thomson Reuters data show. Advisory boutique firm Robey Warshaw has jumped to eighth spot in the M&A league tables after also working with BG Group.
USSeeksCommentsonGulfAirlineSubsidyClaims
The Barack Obama administration is soliciting comments from interested parties about United States (US) airline and unions’ claims that Gulf carriers have received market-distorting subsidies, marking the latest step in its review of the matter.
“The US government takes seriously the concerns raised,” the departments of State, Commerce and Transportation said in a joint statement. The review of submitted materials is expected to begin by the end of May.
US carriers and unions allege that Emirates, Etihad Airways and Qatar Airways benefit from more than $40 billion in state subsidies that have allowed them to drive down ticket prices and begin pushing US airlines out of key markets. They have called on the Obama administration to request consultations on the matter with those airlines’ home governments, the United Arab Emirates and Qatar.
The Gulf carriers have denied the subsidy allegations and said US airlines’ inferior service has caused them to lose market share, according to Reuters.