NO 240 – FEBRUARY 2013
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WFE Focus February 2013
Regulation

Eurex designated as “Qualified Board or Exchange” by US Treasury

Eurex Exchange announced that the US Treasury will publish a revenue ruling in which it designates Eurex as a “Qualified Board or Exchange”. This ruling, effective for all contracts entered on or after 1 March 2013, means that US persons that trade on Eurex Exchange may receive “60/40 tax treatment” in the same way when trading at other US futures exchanges.

Irish Stock Exchange’s GEM market approved by ECB for Eurosystem Monetary Policy

The Irish Stock Exchange’s Global Exchange Market (GEM) has been approved by the European Central Bank as an acceptable non-regulated market for the Eurosystem’s monetary policy. As a result, securities listed on GEM can now be assessed under the eligibility criteria of marketable assets set down by the ECB credit assessment framework. They can serve as collateral by counterparties and credit institutions in order to gain access to the Eurosystem’s liquidity-providing monetary policy operations and intraday credit.

Johannesburg Stock Exchange and IoDSA collaborate on corporate governance guidelines

As stakeholder interest in the corporate governance of listed companies continues to grow, companies grappling with how to be more transparent about these practices have received guidance from two practice notes issued by the King Committee on Corporate Governance. The drafting of the practice notes has been organized by the Institute of Directors in Southern Africa (IoDSA) in collaboration with the Johannesburg Stock Exchange. The King committee proposes that companies should report on their application on its corporate governance principles to give stakeholders a more comprehensive picture. This disclosure will allow stakeholders to understand and challenge boards on the quality of their governance.

Shenzhen Stock Exchange issues standards for condemnation on companies listed on SME Board

Recently, the Shenzhen Stock Exchange released standards for public condemnation on companies listed on SME Board. The standards, which will come into effect immediately, further improve the mechanism of discipline punishment, self-discipline, supervision and law enforcement.

Taiwanese regulator authorizes investment in offshore ETFs

In connection with the regulations governing offshore funds, the Financial Supervisory Commission has recently defined the scope of offshore ETFs in which overseas Chinese and foreign nationals are allowed to invest. Overseas Chinese and foreign nationals, however, are still prohibited from purchasing or redeeming ETFs in Taiwan’s primary market for offshore ETFs.