16 October 2005

Russian Securities Agency Wants to Limit IPOs Abroad

Yet more geniuses, or is that geniae, at work Russian Securities Agency Wants to Limit IPOs Abroad. Has been tagged as a Kanutian policy(as in King Kanute).

Update - I decided, on reflection, that it is not only Kanutian but also Phyrric.

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1 comment:

Daniel Nerezov said...

Hehe. I think we could all use a tip from king Kanute, least of all the almighty Federal Service for Financial Markets. I�d also add that the road to hell is paved with good intentions. I am shocked to witness this kind of legislative heavy handedness and would think that dozens of companies listing in London is not the sort of tide you wanna fight against.

This Bill is either very short sighted or depends on some super smart economists having modeled this to find a quick solution to the stock market liquidity problem. Alas, my faith fails for multivariate forecasting and the Russian bureaucracy.

It'd be interesting to find out what the Asian economies did to stimulate their stock markets, but my hunch is that the process is best done organically.

Russia should let the first generation of companies list anyhow and anywhere ever they want to list, create incentives for the resulting wealth to be reinvested in the Russian exchange, and thus stimulate liquidly for the second generation of companies.

Cutting corners has time and a place, and this is not one of those instances.

16 October 2005

Russian Securities Agency Wants to Limit IPOs Abroad

Yet more geniuses, or is that geniae, at work Russian Securities Agency Wants to Limit IPOs Abroad. Has been tagged as a Kanutian policy(as in King Kanute).

Update - I decided, on reflection, that it is not only Kanutian but also Phyrric.

Technorati Tags: , ,

1 comment:

Daniel Nerezov said...

Hehe. I think we could all use a tip from king Kanute, least of all the almighty Federal Service for Financial Markets. I�d also add that the road to hell is paved with good intentions. I am shocked to witness this kind of legislative heavy handedness and would think that dozens of companies listing in London is not the sort of tide you wanna fight against.

This Bill is either very short sighted or depends on some super smart economists having modeled this to find a quick solution to the stock market liquidity problem. Alas, my faith fails for multivariate forecasting and the Russian bureaucracy.

It'd be interesting to find out what the Asian economies did to stimulate their stock markets, but my hunch is that the process is best done organically.

Russia should let the first generation of companies list anyhow and anywhere ever they want to list, create incentives for the resulting wealth to be reinvested in the Russian exchange, and thus stimulate liquidly for the second generation of companies.

Cutting corners has time and a place, and this is not one of those instances.