Financial Analysis of restructuring of Canada's Capital markets in Essay

Financial Analysis of restructuring of Canada's Capital markets in March, 1999 - Essay Example The agreement was implemented at the end f 1999 and in early 2000. As a result, the trading f senior equities was consolidated on the TSE, derivatives trading was transferred to the ME, and the ASE and the VSE, after merging to become the Canadian Venture Exchange (CDNX), specialized in the trading f junior securities. The rationale behind the restructuring was a desire to strengthen the overall competitiveness f the Canadian exchanges by reducing fragmentation. At the time, this was seen as especially critical, given the increasing globalization f markets and the growing competition between traditional stock exchanges and new trading mechanisms. In addition, the restructuring promised to eliminate some duplication and simplify trading rules and regulation, thereby contributing to lower costs for issuers, dealers, and investors. Finally, each exchange hoped to increase its expertise by concentrating its efforts on a specific segment f the financial market. The TSE is by far the largest exchange in Canada. At the end f December 2000, market capitalization on the exchange was $1,434 billion with 1,421 companies listed (the average issue size was almost $850 million). To put this in perspective, in terms f market capitalization f domestic companies, as f December 2000, the TSE was the eighth-largest equity exchange in the world, but it was 15 times smaller than the largest (US$770 billion versus US$11,442 billion in market capitalization at the New York Stock Exchange (NYSE)). The volume f activity on the TSE, like most other exchanges in the world, has surged in the last few years. In 2000, an average f 131,000 transactions was made each day, representing an average f 162 million shares for a total value f $3.8 billion. From 1998 to 2000, the number f transactions grew by a factor f 2.5, and the dollar value f trading and the number f shares traded almost doubled. The Canadian Venture Exchange (CDNX) officially commenced trading on 29 November 1999. Given its focus on small and emerging companies, the average equity market capitalization f the 2,600 firms listed on the exchange is relatively low at $5.7 million. Thus, total market capitalization was roughly $15 billion in December 2000, only 1 per cent that f the TSE. The structure f the Canadian equity market is continuing to evolve, following an agreement in principle between the CDNX and the TSE, under which the CDNX would become a wholly owned subsidiary f the TSE. Shareholders f both exchanges voted in favor f the merger in May 2001, and regulatory approval was granted in late July. The TSE and CDNX operate under a similar market structure. Both have a modified electronic auction/ order-driven market. The TSE market structure can be characterized as a modified continuous auction market because f the role played by two groups to support the trading process: registered traders and investment dealers. The role f investment dealers in the upstairs market is very important to the TSE, and it has grown over the years. In terms f value f activity, the share f upstairs trades has increased from 37 per cent in 1984 to around 53 per cent in 1996, f which 90 per cent were large or block trades (TSE

Reflection - essay Example | Topics and Well Written Essays - 250 words - 1

Reflection - - Essay Example y include water for sanitation use, but also drinking water bottles, and it needs to be known that they are highly expensive across the country, almost around the same price as petrol. We need to take some measures as a country to ensure we utilize water efficiently so as to ensure the resource lasts for a while and our younger one are not deprived of the key resource. To start off with we should limit out use of water, which sheds light on our fist R-Reduce (Roca and Curto, 2007). WE can do this by only consuming water when required, switching off taps when the water is not in use and placing fines on wastage of water. The second R-Reuse tells us to reuse the water rather than wasting used water. To think of it, water used by human can be used for watering soils amongst other things. Also drainage water should be stored and diverted to where it can be used, rather than supplying fresh water. The third and final R is Recycle and focuses on recycling water once it has been used. The water used up can be recycled by plants that can be setup by the UAE government, and then be supplied to the people living in UAE. While its acceptability may cause questions, people sh ould be explained about its benefits to the society as a whole and its use should be