Assignment # 01

Date of submission: Feb 22, 2012

Answer to the question no: 1, 2, and 3 (From United States perspective)

Securities Act Of 1933
A federal piece of legislation enacted as a result of the market crash of 1929. The legislation had two main goals: (1) to ensure more transparency in financial statements so investors can make informed decisions about investments, and (2) to establish laws against misrepresentation and fraudulent activities in the securities markets. Retrived from: http://www.investopedia.com/terms/s/securitiesact1933.asp#ixzz1mYSwjw9K The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some serious questions about the effectiveness of how the markets were being governed. Because of the turmoil surrounding the investing community at this time, the federal government had to bring back stability and investor confidence in the overall system. In general, the legislation was enacted as the need for more information within and about the securities markets was acknowledged. The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission. Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement. Retrieved from: http://www.investopedia.com/terms/s/securitiesact1933.asp#ixzz1mYT1IFr8
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Securities Exchange Act Of 1934

The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public.

Assignment # 01

Date of submission: Feb 22, 2012

Retrieved from: http://www.investopedia.com/terms/s/seact1934.asp#ixzz1mYZK5R8V All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. Primary requirements include registration of any securities listed on stock Page | 2 exchanges, disclosure, proxy solicitations and margin and audit requirements. From this act the Securities Exchange Commission (SEC) was created. The SEC's responsibility is to enforce securities laws. Retrieved from: http://www.investopedia.com/terms/s/seact1934.asp#ixzz1mYZMa9Lc

Securities And Exchange Commission - SEC

A government commission created by Congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers in the U.S. The SEC is composed of five commissioners appointed by the U.S. President and approved by the Senate. The statutes administered by the SEC are designed to promote full public disclosure and to protect the investing public against fraudulent and manipulative practices in the securities markets. Generally, most issues of securities offered in interstate commerce, through the mail or on the internet must be registered with the SEC. Retrieved from: http://www.investopedia.com/terms/s/sec.asp#ixzz1mYaBVPil Here's an example of an activity that falls within the SEC's domain: if someone purchases more than 5% of a company's equity, he or she must report to the SEC within 10 days of the purchase because of the takeover threats it may cause. Retrieved from: http://www.investopedia.com/terms/s/sec.asp#ixzz1mYauLzCq

Nasdaq
A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the world's first electronic stock market.

Assignment # 01

Date of submission: Feb 22, 2012

Stocks on the Nasdaq are traditionally listed under four or five letter ticker symbols. If the company is a transfer from the New York Stock Exchange, the symbol may be comprised of three letters. Retrieved from: http://www.investopedia.com/terms/n/nasdaq.asp#ixzz1mYeW4uPU The term "Nasdaq" used to be capitalized "NASDAQ" as an acronym for National Association of Securities Dealers Automated Quotation. The acronym is no longer used and Nasdaq is now a proper noun. The Nasdaq is traditionally home to many high-tech stocks, such as Microsoft, Intel, Dell and Cisco. Retrieved from: http://www.investopedia.com/terms/n/nasdaq.asp#ixzz1mYeeVTSD
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New York Stock Exchange NYSE

A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago. The parent company of the New York Stock Exchange is now called NYSE Euronext, following a merger with the European exchange in 2007. Also known as the "Big Board", the NYSE relied for many years on floor trading only, using the open outcry system. Today, more than half of all NYSE trades are conducted electronically, although floor traders are still used to set pricing and deal in high volume institutional trading. Retrieved from: http://www.investopedia.com/terms/n/nyse.asp#ixzz1mYfDjiX2 The origins of the exchange date all the way back to 1792. Because of its long operating history the NYSE is home to the majority of the worlds largest and best-known companies. Foreign-based corporations can list their shares on the NYSE if they adhere to certain Securities and Exchange Commission (SEC) rules, known as listing standards.

Assignment # 01

Date of submission: Feb 22, 2012

The NYSE opens for trading Monday through Friday 9:30a.m. to 4:00p.m. (ET), closing early on rare occasions. The market also shuts down during nine holidays throughout the year. Retrieved from: http://www.investopedia.com/terms/n/nyse.asp#ixzz1mYfGwXMo

Commodity Futures Trading Commission - CFTC

A U.S. federal agency established by the Commodity Futures Trading Commission Act of 1974. It ensures the open and efficient operation of the futures markets. There are five futures markets commissioners who are appointed by the president (subject to Senate approval). Retrieved from: http://www.investopedia.com/terms/c/cftc.asp#ixzz1mYgqiupH

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National Futures Association NFA

The independent self-regulatory organization for the U.S. futures market. NFA membership is mandatory for all participants in the futures market, providing assurance to the investing public that all firms, intermediaries and associates who conduct business with them on the U.S. futures exchanges must adhere to the same high standards of professional conduct. The NFA operates at no cost to the taxpayer, as it is financed exclusively by membership dues paid by members and assessment fees paid by users of futures markets. The national headquarters is in Chicago and there is an office in New York. Retrieved from: http://www.investopedia.com/terms/n/nfa.asp#ixzz1mYhWWrWu The NFA began operating in 1982, subsequent to the establishment of the Commodity Futures Trading Commission in 1974; this legislation also authorized the creation of registered futures exchanges, thereby facilitating the creation of a national self-regulatory organization. In addition to regulation of the U.S. futures market, the NFA's duties and functions include registration, compliance and arbitration. It combats fraud and abuse in the futures markets through a combination of rigorous registration requirements, stringent compliance rules, strong enforcement authority and real-time market surveillance. Retrieved from: http://www.investopedia.com/terms/n/nfa.asp#ixzz1mYhfpMsF

Assignment # 01

Date of submission: Feb 22, 2012

National Futures Association NFA

The independent self-regulatory organization for the U.S. futures market. NFA membership is mandatory for all participants in the futures market, providing assurance to the investing public that all firms, intermediaries and associates who conduct business with them on the U.S. futures Page | 5 exchanges must adhere to the same high standards of professional conduct. The NFA operates at no cost to the taxpayer, as it is financed exclusively by membership dues paid by members and assessment fees paid by users of futures markets. The national headquarters is in Chicago and there is an office in New York. Retrieved from: http://www.investopedia.com/terms/n/nfa.asp#ixzz1mYrQAE39

Federal Reserve System - FRS

The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Retrieved from:http://www.investopedia.com/terms/f/federalreservesystem.asp#ixzz1mYrq6zLU You can divide the Federal Reserve's duties into four general areas: 1. Conducting monetary policy 2. Regulating banking institutions and protecting the credit rights of consumers 3. Maintaining the stability of the financial system 4. Providing financial services to the U.S. government Retrieved from:http://www.investopedia.com/terms/f/federalreservesystem.asp#ixzz1mYrsYCn0

The Office of Thrift Supervision (OTS)

Was a United States federal agency under the Department of the Treasury that charters, supervises, and regulates all federally chartered and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of another federal agency (that was

Assignment # 01

Date of submission: Feb 22, 2012

faulted for its role in the savings and loan crisis). Like other US federal bank regulators, it is paid by the banks it regulates. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue. The OTS also expanded its oversight to companies that were not banks. Some of the companies that failed under OTS supervision during the financial crisis of 20072010 include American International Group (AIG), Washington Mutual, and IndyMac. The OTS was implicated in a backdating scandal regarding the balance sheet of IndyMac. Reform proposals from Henry Paulson, President Barack Obama, and the U.S. Congress have all proposed to merge the OTS with the Office of the Comptroller of the Currency. Section 312 of the DoddFrank Wall Street Reform and Consumer Protection Act mandated merger of OTS with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board, and the Consumer Financial Protection Bureau (CFPB) as of July 21, 2011. The OTS will cease to exist on October 19, 2011. Retrieved from: http://en.wikipedia.org/wiki/Office_of_Thrift_Supervision
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Federal Home Loan Bank Board

A federal agency that supervises all federal savings and loan associations and federally insured state-chartered savings and loan associations. The FHLBB also directs the Federal Home Loan Bank System, which provides a flexible credit facility for members to promote home financing; the Federal Savings and Loan Insurance Corp., which insures accounts at federal savings and loan associations and some state-chartered associations; and the Federal Home Loan Mortgage Corp., which was established in 1970 to promote secondary markets for mortgages. Retrieved from:http://invest.yourdictionary.com/federal-home-loan-bank-board

Assignment # 01

Date of submission: Feb 22, 2012

Bank For International Settlements BIS

An international organization fostering the cooperation of central banks and international monetary Page | 7 policy makers. Established in 1930, it is the oldest international financial organization, and was created to administer the transaction of monies according to the Treaty of Versailles. Among others, its main goals are to promote information sharing and to be a key center for economic research. Retrieved from :http://www.investopedia.com/terms/b/bis.asp#ixzz1mYv3WoXY

Answer to the question no: 1 and 2 (From Japans perspective)

Ministry of Finance (Japan)
The Ministry of Finance ( Zaimu-sh?) is one of cabinet-level ministries of the Japanese government. The ministry was once named kura-sh (). The Ministry is headed by the Minister of Finance (Zaimu-daijin; ), who is a member of the Cabinet and is typically chosen from members of the Diet by the Prime Minister. The Ministry's origin was back in the 6th century, when kura () was established as a state treasury in ancient Japan. When a modern system of government was introduced after the Meiji Restoration, the Ministry of Finance (; kura-sh) was established as a government body in charge of public finance and monetary affairs. It is said that new ministry employees are subtly reminded that the kura-sh predates by some 1269 years the Nihon Koku Kempo (New Constitution) imposed on the nation by the U.S. occupation forces in 1947.[1]

Assignment # 01

Date of submission: Feb 22, 2012

The Ministry has long been regarded as the most powerful ministry in the Japanese government. After various financial scandals revealed in the 1990s, however, the Ministry lost its power over banking supervision to a newly-established Financial Services Agency. It also lost most of its control over monetary policy to the Bank of Japan when the Diet passed a new Bank of Japan Law Page | 8 in 1998. In addition, it lost its ancient Japanese name in January 2001, to be renamed as Zaimu-sh (), although its English name remained the same. Retrieved: http://en.wikipedia.org/wiki/Ministry_of_Finance_%28Japan%29

Securities and Exchange Surveillance Commission

The Securities and Exchange Surveillance Commission ( SESC shouken torihikitou kanshi iinkai?) is a Japanese commission which comes under the authority of the Financial Services Agency.[1] It is responsible for ensuring fair transactions in both securities and financial futures markets.[2] The SESC was formally established on July 20, 1992, in the wake of a number of 1991 scandals related to securities companies. In June 1998 the Financial Supervisory Agency and the SESC were split off from the Ministry of Finance, and the Financial Supervisory Agency became the Financial Services Agency.[6] The SESC has five objectives, and a division to handle each one:[7]

Market Surveillance Compliance Inspection Disclosure Document Inspection Administrative Civil Monetary Penalties Investigation Enforcement-Investigation and Filing Criminal Charges

Retrieved: http://en.wikipedia.org/wiki/Securities_and_Exchange_Surveillance_Commission

Assignment # 01

Date of submission: Feb 22, 2012

Answer to the question no: 1 and 2 (From UKs perspective)

THE UKS TRIPARTITE FINANCIAL AUTHORITIES

Bank of England - BoE

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The Bank of England is the central bank for the United Kingdom. It has a wide range of responsibilities, similar to those of most central banks around the world. For example, it acts as the government's bank and the lender of last resort, it issues currency and, most importantly, it oversees monetary policy. Sometimes known as "the Old Lady of Threadneedle Street", the BoE is the UK's equivalent of the Federal interest Reserve rate in only the United since States. 1997. One interesting fact about the BoE is that it has been responsible for setting the UK's official retrieved: http://www.investopedia.com/terms/b/boe.asp#ixzz1mcYaj6z4

Financial Services Authority - FSA

Regulating body for all providers of financial services in the United Kingdom. The Financial Services Authority (FSA) is an independent, non-governmental entity that receives its statutory powers through the Financial Services and Markets Act of 2000. The company is funded entirely by firms that it regulates within the financial services industry, and is accountable to Treasury Ministers and Parliament. The statutory objectives of the Financial Services Authority are to ensure market confidence, financial stability, consumer protection and the reduction of financial crime. retrieved: http://www.investopedia.com/terms/f/financial-services-authorityfsa.asp#ixzz1mcjgsPDo

Assignment # 01

Date of submission: Feb 22, 2012

Her Majesty's (HM) Treasury

The United Kingdom's economics and finance ministry, responsible for formulating and implementing financial and economic policy. Her Majesty's Treasury's stated aim is "to raise the Page | 10 rate of sustainable growth and achieve rising prosperity and a better quality of life with economic and employment opportunities for all." According to the HM Treasury, the Anglo-Saxon Treasury collected taxes (including the danegeld, first levied as a tribute to the Vikings to persuade them - sometimes unsuccessfully - to stay away) and controlled expenditure as far back as 1066. HM Treasury claims that the first "treasurer" was probably "Henry the Treasurer". Henry owned land around Winchester and was referred to in the Domesday Book, a systematic tax assessment of the whole country undertaken by the Treasury. retrieved from: http://www.investopedia.com/terms/h/hm-treasury.asp#ixzz1mcl0Rc00

Securities and Investments Board

Former regulator of the UK investment market (in accordance with the Financial Services Act 1986) which was replaced by the Financial Services Authority (FSA) in October 1997. It was introduced in 1987 following the deregulation process of the so-called Big Bang, and acted as an umbrella organization to such self-regulating bodies as the Stock Exchange. retrieved: http://www.talktalk.co.uk/reference/encyclopaedia/hutchinson/m0018762.html

Department of Trade and Industry (United Kingdom)

The Department of Trade and Industry was a United Kingdom government department which was replaced with the announcement of the creation of the Department for Business, Enterprise and Regulatory Reform and the Department for Innovation, Universities and Skills on 28 June 2007. The department was first formed in 1970 with the merger of the Board of Trade and the Ministry of Technology, creating a new cabinet post of Secretary of State for Trade and Industry. The new department also took over the Department of Employment's former responsibilities for monopolies and mergers. The DTI had a wide range of responsibilities. There were ultimately nine main areas covered by the DTI:

Company Law

Assignment # 01

Date of submission: Feb 22, 2012

Trade Business Growth Innovation Employment Law Regional Economic Development Energy Science Consumer Law.

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It also had responsibility for investigating misconduct by company directors, in which role Private Eye repeatedly lampooned it as "the Department of Timidity and Inaction". retrieved: %28United_Kingdom%29 http://en.wikipedia.org/wiki/Department_of_Trade_and_Industry_