[PASSED] Stock Exchanges and Foreign Investment

[United Federated States of Omega]

"Honorable members of the General Assembly I wish to present the following draft before you for your feedback on the legality and content of this proposal," said Mr. Xavier before presenting his proposal to the Assembly.

Stock Exchanges and Foreign Investment
Category: Free Trade
Strength: Mild

Recognizing that stock exchanges provide corporations and governments the ability to raise funds,

Further recognizing that there is a significant amount of capital that could be invested outside of any given country’s borders,

Also noting that nations which have invested in the economies of other nations are less likely to enter an armed conflict,

Acknowledging that there are certain barriers, like exchange rates, to international investment,

Believing that foreign investment provides a way for corporations and governments to raise more funds than may have been previously available to them, hereby:

1. Defines, for the purposes of this resolution,
   
   1. 'stock' as a portion of ownership in a corporation,
   2. 'bond' as a certificate showing the ownership of a specific amount of debt to be paid back, with interest, at a later date specified at the time the bond was bought,
   3. 'tradable derivative' as a tradable contract, which derives value from specific currencies, commodities or stocks,
   4. 'security' as a document, be it physical or otherwise, attesting to the ownership of stocks, bonds, or a tradable derivative,
   5. 'stock exchange' as a platform, be it physical or otherwise, on which securities are bought and sold, and
2. Recommends that all stock exchanges headquartered within a member state shall be open to the citizens of any World Assembly member state unless this section is:
   
   1. waived between the investors and exchanges of nations engaged in a direct military conflict, embargo, or as part of sanctions, or
   2. waived for any specific individual or group that has been found guilty of a crime related to the buying and/or selling of securities or any individual or group found guilty of a crime that was facilitated by the buying and/or selling of securities;
   3. waived for any specific individual or group that has violated WA legislation
3. Establishes the International Securities and Exchange Commission (ISEC) to develop, maintain, and publish a model code of securities regulations, which may act as a guide for member state governments;
   
   
4. Empowers the ISEC to regulate the exchanges on which currencies are traded to prevent artificial manipulation of the exchange rate and to ensure that these exchanges operate without bias toward the citizens of any one nation.
   
   
5. Reserves the right for member states to implement whatever regulations they see fit on domestic exchanges, within the confines of current WA legislation.

Edit 1: fixed minor grammatical errors in definition of security and in "Believing" clause
Edit 2: added "Also noting" clause. Added 1.b and 3.a.
Edit 3: Reworded 3.
Edit 4: combined definitions into providing clause, reworded section 3.a
Edit 5: Reworded 1, added to 3.a and added 4.
Edit 6: Removed 2, renumbered
Edit 7: Reformatted to fit with standard formatting (thanks Imperium Anglorum) and removed the definition of brokerage.
Edit 8: Changed Mandates in section 2 to Recommends, strength downgraded to mild.
Edot 9: Added 2.c
Edit 10: Changed international law to WA legislation.

[Christian Democrats]

I like this idea.

Acknowledging that there are certain barriers, like exchange rates, to international investment,

Okay, what does your proposal do about such barriers?

Believing that foreign investment provides a way for corporations and governments to easily raise more funds than may have been previously available to them,

You're splitting the infinitive here.

Further defining a security as a document, be it physical or otherwise, attesting the ownership of stocks, bonds, or a tradable derivative,

This clause needs to be slightly rewritten. My suggestion: "Further defining a security as a document, be it physical or otherwise, attesting to the ownership of a stock, bond, or tradable derivative."

Also defining a brokerage as any financial institution or entity allowed to buy or sell securities on a stock exchange,

You need a better definition for a brokerage.

1. That all national stock exchanges shall be open to the citizens of any World Assembly member state.

Why are non-citizens excluded?

3. The International Securities and Exchange Commission, hereafter referred to as ISEC, shall be established to aid nations in determining regulations for their own stock exchanges and brokerages.

I'm not sure that I fully understand the reason for establishing this commission.

[Calladan]

I suspect that Clause 1 might also need to include "and you can also prevent known criminals and fraudsters from investing as well" (although probably in better language) because honestly if someone has a history of dishonest and fraudulent dealings, I would like to be able to ban them from my stock exchange as a general precaution.

(Note - I am not suggesting those who are suspected but not convicted - just people with actual convictions for doing naughty things in relation to money. But on the topic of people doing bad things - what about companies and/or people that you know are somehow manipulating the market, companies that are suspected/known of being front for terrorist/Mafia/other organised crime groups and so forth? Are you permitted to ban them?)

[United Federated States of Omega]

Acknowledging that there are certain barriers, like exchange rates, to international investment,

Okay, what does your proposal do about such barriers?

Well at this point not much. I was just kind of noting that they exist. I could always have the ISEC manage exchange rates to help facilitate trade.

Believing that foreign investment provides a way for corporations and governments to easily raise more funds than may have been previously available to them,

You're splitting the infinitive here.

Fixed I think.

Further defining a security as a document, be it physical or otherwise, attesting the ownership of stocks, bonds, or a tradable derivative,

This clause needs to be slightly rewritten. My suggestion: "Further defining a security as a document, be it physical or otherwise, attesting to the ownership of a stock, bond, or tradable derivative."

Also fixed. Thank you for the suggestion.

Also defining a brokerage as any financial institution or entity allowed to buy or sell securities on a stock exchange,

You need a better definition for a brokerage.

So here is the dictionary definition: "a company that buys or sells goods or assets for clients" I thought I was able to adapt it but apparently not. I am not really sure a good way to adapt the definition for the purposes of this resolution beyond what I had.

1. That all national stock exchanges shall be open to the citizens of any World Assembly member state.

Why are non-citizens excluded?

For no good reason. I could make it residents but then you run the risk of people who are not citizens of a WA nation moving to WA nation to have access to all of these assets.

3. The International Securities and Exchange Commission, hereafter referred to as ISEC, shall be established to aid nations in determining regulations for their own stock exchanges and brokerages.

I'm not sure that I fully understand the reason for establishing this commission.

Well, so my idea was that it would able to help regulate what securities are allowed onto markets however I'm afraid that might be illegal. Putting an international body in place to help nations develop regulations may, over time, lead to more uniform regulations, wich would over time allow for more cross-exchange trading.

I suspect that Clause 1 might also need to include "and you can also prevent known criminals and fraudsters from investing as well" (although probably in better language) because honestly if someone has a history of dishonest and fraudulent dealings, I would like to be able to ban them from my stock exchange as a general precaution.

(Note - I am not suggesting those who are suspected but not convicted - just people with actual convictions for doing naughty things in relation to money. But on the topic of people doing bad things - what about companies and/or people that you know are somehow manipulating the market, companies that are suspected/known of being front for terrorist/Mafia/other organised crime groups and so forth? Are you permitted to ban them?)

Perhaps we could make it where individual nations could be able to ban people convicted of financial crimes from trading? Language idea, "Any nation may ban an individual or group that has been found guilty of a crime related to the buying and selling of securities."

[Calladan]

I suspect that Clause 1 might also need to include "and you can also prevent known criminals and fraudsters from investing as well" (although probably in better language) because honestly if someone has a history of dishonest and fraudulent dealings, I would like to be able to ban them from my stock exchange as a general precaution.

(Note - I am not suggesting those who are suspected but not convicted - just people with actual convictions for doing naughty things in relation to money. But on the topic of people doing bad things - what about companies and/or people that you know are somehow manipulating the market, companies that are suspected/known of being front for terrorist/Mafia/other organised crime groups and so forth? Are you permitted to ban them?)

Perhaps we could make it where individual nations could be able to ban people convicted of financial crimes from trading? Language idea, "Any nation may ban an individual or group that has been found guilty of a crime related to the buying and selling of securities."

That would do for the first part, but what if their crime was not related specifically to securities? (If a banned organisation use the stock market to fund their activities, then arguably they are not committing crimes relating to that, but the fact they are using it to fund blowing up buildings and kidnapping people for ransom and/or slavery related stuff means we should be able to suspend their trading, wouldn't you say?) (And on a similar note, if Globodex went bankrupt to avoid paying their employees, then came back as Hypermega Corp and started trading again with the same directors, should we be allowed to suspend shares in their company, even though their crime was not security related?) (That is more of an ethical question I guess?)

[United Federated States of Omega]

That would do for the first part, but what if their crime was not related specifically to securities? (If a banned organisation use the stock market to fund their activities, then arguably they are not committing crimes relating to that, but the fact they are using it to fund blowing up buildings and kidnapping people for ransom and/or slavery related stuff means we should be able to suspend their trading, wouldn't you say?) (And on a similar note, if Globodex went bankrupt to avoid paying their employees, then came back as Hypermega Corp and started trading again with the same directors, should we be allowed to suspend shares in their company, even though their crime was not security related?) (That is more of an ethical question I guess?)

So I would say that those are crimes related to the buying and selling of securities. What if the language was written like this: Any nation may ban an individual or group that has been found guilty of a crime related to the buying and selling of securities or any individual or group where a crime was facilitated through the buying and selling of securities.
The second part is interesting and I think that should lie within national jurisdiction.

[Christian Democrats]

I'm not sure that I fully understand the reason for establishing this commission.

Well, so my idea was that it would able to help regulate what securities are allowed onto markets however I'm afraid that might be illegal. Putting an international body in place to help nations develop regulations may, over time, lead to more uniform regulations, wich would over time allow for more cross-exchange trading.

Perhaps, your resolution could task the International Securities and Exchange Commission with establishing a uniform code of securities regulations, on which individual nations could base their own securities regulations. For instance:

The International Securities and Exchange Commission (ISEC) shall be established; and it shall develop, maintain, and publish a model code of securities regulations, which may act as a guide for member state governments.

[Jarish Inyo]

Why should nations be forced to open their stock markets to foreign investors?

[United Federated States of Omega]

Well, so my idea was that it would able to help regulate what securities are allowed onto markets however I'm afraid that might be illegal. Putting an international body in place to help nations develop regulations may, over time, lead to more uniform regulations, wich would over time allow for more cross-exchange trading.

Perhaps, your resolution could task the International Securities and Exchange Commission with establishing a uniform code of securities regulations, on which individual nations could base their own securities regulations. For instance:

The International Securities and Exchange Commission (ISEC) shall be established; and it shall develop, maintain, and publish a model code of securities regulations, which may act as a guide for member state governments.

Do you mind if I use that wording in the resolution? And if I do, do I need to recognize you as a co-author?
Also I am going to reorganize the clauses of the enacts section to put the ISEC first.

Why should nations be forced to open their stock markets to foreign investors?

The reason I am proposing this resolution is due to the fact that by opening up markets it allows corporations and governments to easily raise more capital. One other reason is that nations that trade together and invest in the well-being of each other generally tend to not declare war against each other. I will be adding a clause on that last part to the resolution.

[Wealthatonia]

This is a great idea! I hope that this resolution will be passed as it would be fantastic for our middle class and wealthy citizens

[Jarish Inyo]

I'm not asking why you're proposing this. I'm asking why nations should be forced to open their stock markets to foreign investors if the do not want foreign investors? After all, not all nations desire to trade with other nations nor have foreigners involved in domestic trading.

[Christian Democrats]

Perhaps, your resolution could task the International Securities and Exchange Commission with establishing a uniform code of securities regulations, on which individual nations could base their own securities regulations. For instance:

The International Securities and Exchange Commission (ISEC) shall be established; and it shall develop, maintain, and publish a model code of securities regulations, which may act as a guide for member state governments.

Do you mind if I use that wording in the resolution? And if I do, do I need to recognize you as a co-author?

You may use the wording that I've suggested, and you don't have to recognize me as a coauthor.

[United Federated States of Omega]

I'm not asking why you're proposing this. I'm asking why nations should be forced to open their stock markets to foreign investors if the do not want foreign investors? After all, not all nations desire to trade with other nations nor have foreigners involved in domestic trading.

Here's the thing: For the people of my nation, I see this as opening up new opportunities for them to become more prosperous. If you do not want foreign investors I do understand that, however, it is worth noting that for many individuals foreign investment would be a net benefit. Also, I can't allow for individual members to opt out due to GA rules and regulations. What I can do is allow members to enforce regulations on their own markets, and those regulations may be written in any way so long as WA member state citizens are stilled allowed on exchanges.

[Jarish Inyo]

And that's not acceptable. You nation's opportunities doe not make this an international issue. The WA doesn't exist to force nations to open their markets to foreign investors. It goes against the concept of the WA.

Instead of forcing nations to open their markets to foreigners, maybe you should be thinking of regulations for nations that willingly open their markets to foreign investors.

[United Federated States of Omega]

Fellow ambassadors, I realize some of your nations have moral and economic reasons as to why this resolution may not be the best for your country, and I recognize you will likely vote against this resolution. What I would like to know is does this resolution, as it currently stands, appear legal and without notable flaw?
OOC: I know this may not pass. I just want to know if it would be possible to legally get this to a vote.

[Bears Armed]

It goes against the concept of the WA.

"The concept of the W.A. is 'to improve the world, one resolution at a time': That is all. You might disagree about what constitutes an improvement, but this proposal does fit within the specified category."

Artorrios o SouthWoods,
ChairBear, Bears Armed Mission at the World Assembly.

[Wealthatonia]

I'm not asking why you're proposing this. I'm asking why nations should be forced to open their stock markets to foreign investors if the do not want foreign investors? After all, not all nations desire to trade with other nations nor have foreigners involved in domestic trading.

Only a nation that is not interested in increasing its wealth would not want this

[Lord Dominator]

I'm not asking why you're proposing this. I'm asking why nations should be forced to open their stock markets to foreign investors if the do not want foreign investors? After all, not all nations desire to trade with other nations nor have foreigners involved in domestic trading.

Only a nation that is not interested in increasing its wealth would not want this

"Ambassador, did you even listen to what the ambassador who you are replying to even said," DeeDee says as she sits making cutting out paper people out of paper money. "The ambassador you replied to was questioning why nations should be forced to allow foreign investors if they do want them, not about wealth creation, which can still be a goal of a country even if they don't want total freedom in who can invest in their markets."

"Regardless, I do have a comment on the actual resolution," DeeDee continues as she starts setting the little paper people on fire, "and that would be to ask the point of the last clause (3a). Through the rest of your propsosed resolution, you seem to be focusing on opening up financial markets to foreigners and generally freeing them. Why then are you putting the choosing of exchange rates under the command of the ISEC, when it seems your purpose would be better served by simply mandating that all currencies be free-floating outside of exceptional situations?"

[Wealthatonia]

Only a nation that is not interested in increasing its wealth would not want this

"Ambassador, did you even listen to what the ambassador who you are replying to even said," Deandra says as she sits making cutting out paper people out of paper money. "The ambassador you replied to was questioning why nations should be forced to allow foreign investors if they do want them, not about wealth creation, which can still be a goal of a country even if they don't want total freedom in who can invest in their markets."

"Regardless, I do have a comment on the actual resolution," Deandra continues as she starts setting the little paper people on fire, "and that would be to ask the point of the last clause (3a). Through the rest of your propsosed resolution, you seem to be focusing on opening up financial markets to foreigners and generally freeing them. Why then are you putting the choosing of exchange rates under the command of the ISEC, when it seems your purpose would be better served by simply mandating that all currencies be free-floating outside of exceptional situations?"

The money that goes into another nations stock market will improve that nations economy and benefit all of its citizens and the government, or the government can take all that money for itself. Either way it would be a win for that nation. AND STOP DEFACING THAT MONEY!

[States of Glory WA Office]

Defining a stock exchange as a platform, be it physical or otherwise, on which securities are bought and sold,

Fairburn: Firstly, I think it would be a good idea to place the definition of securities before the definition of a stock exchange as this proposal's definition of a stock exchange is reliant on this proposal's definition of securities.

Secondly, a wooden platform on which securities are sold would count as a stock exchange. Clearly, it cannot be opened to every single citizen of any member state or it will collapse literally and therefore metaphorically.

Further defining a security as a document, be it physical or otherwise, attesting to the ownership of stocks, bonds, or a tradable derivative,

Fairburn: Stocks are populations of fish, bonds are attractions between atoms and tradable derivatives are the most overpowered monster in Mocképon.

Harold: You made up that last one, didn't you?

Fairburn: Anyway, I don't like this recent trend of authors either neglecting or refusing to define technical terms in proposals. Be the exception, Ambassador Xavier.

[Lord Dominator]

AND STOP DEFACING THAT MONEY!

DeeDee - Why do you care so much about this money I have here? It isn't from your country. Probably.

[Great Minarchistan]

And that's not acceptable. You nation's opportunities doe not make this an international issue. The WA doesn't exist to force nations to open their markets to foreign investors. It goes against the concept of the WA.

Instead of forcing nations to open their markets to foreigners, maybe you should be thinking of regulations for nations that willingly open their markets to foreign investors.

Your complaint also applies for the latter, sweetie.

[United Federated States of Omega]

"Regardless, I do have a comment on the actual resolution," Deandra continues as she starts setting the little paper people on fire, "and that would be to ask the point of the last clause (3a). Through the rest of your propsosed resolution, you seem to be focusing on opening up financial markets to foreigners and generally freeing them. Why then are you putting the choosing of exchange rates under the command of the ISEC, when it seems your purpose would be better served by simply mandating that all currencies be free-floating outside of exceptional situations?"

Ambassador the reason for placing exchange rates under the ISEC was so they could provide a central authority to ensure they are correct and help reduce confusion to investors. Perhaps it would be better served by stating the ICPA shall regulate the markets on wich currencies are traded?

Defining a stock exchange as a platform, be it physical or otherwise, on which securities are bought and sold,

Fairburn: Firstly, I think it would be a good idea to place the definition of securities before the definition of a stock exchange as this proposal's definition of a stock exchange is reliant on this proposal's definition of securities.

Secondly, a wooden platform on which securities are sold would count as a stock exchange. Clearly, it cannot be opened to every single citizen of any member state or it will collapse literally and therefore metaphorically.

Further defining a security as a document, be it physical or otherwise, attesting to the ownership of stocks, bonds, or a tradable derivative,

Fairburn: Stocks are populations of fish, bonds are attractions between atoms and tradable derivatives are the most overpowered monster in Mocképon.

Harold: You made up that last one, didn't you?

Fairburn: Anyway, I don't like this recent trend of authors either neglecting or refusing to define technical terms in proposals. Be the exception, Ambassador Xavier.

Ambassador Fairburn, the example you bring up in you example would be a case where I would expect that trading would be required to be done through a broker due to the confines of that exchange. I placed the definition of securities after the definition of stock market due to the fact that the definition for stock market mentioned a security. However, you bring up a good point and in my next edit, I will change that.
Also in my next edit, I will look into writing a suitable definition for stock, bond, and tradeable derivative. These definitions will, of course, come before the definition of security.

[Wealthatonia]

AND STOP DEFACING THAT MONEY!

Deandra - Why do you care so much about this money I have here? It isn't from your country. Probably.

It may not be from my country, but someone from your country could have used it...

[Great Minarchistan]

AND STOP DEFACING THAT MONEY!

Chris Jefferson II - No, we must ensure we got a consistent deflation! BURN MORE BANKNOTES!