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Economic Community of West African States

Source: Wikipedia
Comunidade Económica dos Estados da África Ocidental
Communauté économique des États de l'Afrique de l'Ouest
Economic Community of West African States

  Current members  Suspended members
  Current members
  Suspended members
Headquarters Abuja, Nigeria
6°27′N 3°23′E / 6.45°N 3.383°E / 6.45; 3.383
Largest city Lagos, Nigeria
Official languages English, French, Portuguese
Membership
Leaders
 -  Chairman Nigeria Goodluck Jonathan
 -  President of the Commission Ghana James Victor Gbeho
 -  Speaker of the Parliament Niger Mahamane Ousmane
Establishment
 -  Treaty of Lagos 28 May 1975[1] 
Area
 -  Total 5,112,903 km2 (7th)
1,974,103 sq mi 
Population
 -  2006 estimate 251,646,263 (4th)
 -  Density 49.2/km2
127.5/sq mi
GDP (PPP) 2005 estimate
 -  Total US$ 389,519 Billion[citation needed] (28th)
 -  Per capita US$ 7,890[citation needed] 
Currency Cape Verdean escudo (CVE)
Cedi (GHS)2
Dalasi (GMD)2
Guinean franc (GNF)2
Liberian dollar (LRD)3
Naira (NGN)2
Leone (SLL)3
West African CFA franc (XOF)
Time zone (UTC0 to +2)
1 If considered as a single entity.
2 to be replaced by the eco in 2015.
3 Liberia has expressed an interest in joining the eco.
The Economic Community of West African States (ECOWAS) is a regional group of fifteen West African countries. Founded on May 28, 1975, with the signing of the Treaty of Lagos, its mission is to promote economic integration across the region.
Considered one of the pillars of the African Economic Community, the organization was founded in order to achieve "collective self-sufficiency" for its member states by creating a single large trading bloc through an economic and trading union. It also serves as a peacekeeping force in the region.[2] The organization operates officially in three co-equal languages—English, French, and Portuguese.
THE ECOWAS consists of two institutions to implement policies, the ECOWAS Secretariat and the ECOWAS Bank for Investment and Development, formerly known as the Fund for Cooperation until it was renamed in 2001. James Victor Gbeho, the Advisor to the President of Ghana on Foreign Affairs, currently serves as the President of the commission. The current chairman is President Goodluck Jonathan of Nigeria.
A few members of the organization have come and gone over the years. In 1976 Cape Verde joined ECOWAS, and in December 2000 Mauritania withdrew,[3] having announced its intention to do so in December 1999.[4]

Current members

 Benin
 Burkina Faso
 Cape Verde
 Gambia
 Ghana
 Guinea
 Guinea-Bissau
 Liberia
 Mali
 Nigeria
 Senegal
 Sierra Leone
 Togo

Suspended members

 Niger – suspended after the 2009 auto-coup[5]
 Côte d'Ivoire—suspended after the 2010 elections[6]
On October 17, 2009, ECOWAS asked Niger to postpone its controversial 20 October elections.[7]The elections were in the process of being boycotted by members of the opposition as President Mamadou Tandja faced accusations of trying to lengthen his reign. [8] According to the News Agency of Nigeria, the organization stated that the decision to move forward with the election was "in total disregard of the authority of ECOWAS" and that it was "a clear move by the authorities in Niger to further entrench the constitutional illegality currently prevailing in the country".[7] ECOWAS announced the suspension of Niger from the organization on October 20, 2009.[9]

Structure

President of the Commission, Current and Former

African Union

This article is part of the series:
Politics and government of
the African Union
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From 1977 to 2006 the post name was Executive Secretary
From the restructuring

Chairmen

Regional security cooperation

The ECOWAS nation assigned a non-aggression protocol in 1990 long with two earlier agreements in 1978 and 1981. They also signed a Protocol on Mutual Defence Assistance in Freetown, Sierra Leone, on May 29, 1981, that provided for the establishment of an Allied Armed Force of the Community.[10]
See also: Economic Community of West African States Monitoring Group

The Community Court of Justice

The ECOWAS Community Court of Justice was created by a protocol signed in 1991 and was later included in Article 6 of the Revised Treaty of the Community in 1993.[11] However, the Court didn’t officially begin operations until the 1991 protocol came into effect on November 5, 1996. The jurisdiction of the court is outlined in Article 9 and Article 76 of the Revised Treaty and allows rulings on disputes between states over interpretations of the Revised Treaty. It also provides the ECOWAS Council with advisory opinions on legal issues (Article 10). Like its companion courts the European Court of Human Rights and the East African Court of Justice, it possess authority over fundamental human rights breaches.[11]

Sporting and cultural exchange

ECOWAS nations organize a broad array of cultural and sports event under the auspices of the body, ranging from the CEDEAO Cup in football, to the Miss CEDEAO Beauty pageant.[12]

Economic participation

West African Economic and Monetary Union

See also: CFA franc and Economic and monetary union
  UEMOA
  WAMZ
  ECOWAS only
The West African Economic and Monetary Union (also known as UEMOA from its name in French, Union économique et monétaire ouest-africaine) is an organization of eight West African states. It was established to promote economic integration among countries that share the CFA franc as a common currency. UEMOA was created by a Treaty signed at Dakar, Senegal, on January 10, 1994, by the heads of state and governments of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, and Togo. On May 2, 1997, Guinea-Bissau, a former Portuguese colony, became the organization’s eighth (and only non-Francophone) member state.
UEMOA is a customs union and currency union between these members of ECOWAS. Its objectives include the following:[13]
  • Greater economic competitiveness, through open markets, in addition to the rationalization and harmonization of the legal environment
  • The convergence of macro-economic policies and indicators
  • The creation of a common market
  • The coordination of sectoral policies
  • The harmonization of fiscal policies
Among its achievements, the UEMOA has successfully implemented macro-economic convergence criteria and an effective surveillance mechanism. It has adopted a customs union and common external tariff and has combined indirect taxation regulations, in addition to initiating regional structural and sectoral policies. A September 2002 IMF survey cited the UEMOA as "the furthest along the path toward integration" of all the regional groupings in Africa.[14]
ECOWAS and UEMOA have developed a common plan of action on trade liberalization and macroeconomic policy convergence. The organizations have also agreed on common rules of origin to enhance trade, and ECOWAS has agreed to adopt UEMOA’s customs declaration forms and compensation mechanisms.[15]

West African Monetary Zone

See also: Eco (currency)
The West African Monetary Zone is a group of five countries within ECOWAS that plan to introduce a common currency, the Eco, by the year 2015. The five member states are the The Gambia, Ghana, Guinea, Nigeria and Sierra Leone. Liberia has also expressed interest in joining. The WAMZ is largely dominated by Nigeria, due to its status as Africa's largest oil producer and most populous country. All the members of group are English-speaking countries, apart from Guinea, which is Francophone. Along with Mauritania, Guinea opted out of the CFA franc currency shared by all other former French colonies in West and Central Africa.
Formed in 2000, the WAMZ attempts to establish a strong stable currency to rival the CFA franc, whose exchange rate is tied to that of the Euro and is guaranteed by the French Treasury. The eventual goal is for the CFA franc and Eco to merge, giving all of West and Central Africa a single, stable currency. The launch of the new currency is being developed by the West African Monetary Institute based in Accra, Ghana. However, several of the WAMZ's countries currently suffer from weak currencies and chronic budget deficits. Unfortunately, their attempts to close this economic gap by printing more currency has further encouraged inflation.

Transport

Main article: ECOWAS rail
A Trans-ECOWAS project, established in 2007, plans to upgrade railways in this zone, including Ghana.[16]

See also

References

  1. ^ African Union
  2. ^ Adeyemi, Segun (6 August 2003). "West African Leaders Agree on Deployment to Liberia". Jane's Defence Weekly. 
  3. ^ Adeyemi, Segun (2002). "Fostering Regional Integration Through NEPAD Implementation: Annual Report, 2002, of the Executive Secretary Dr. Mohammed Ibn Chambas". Abuja ECOWAS. http://www.sec.ecowas.int/sitecedeao/english/rapport/es_annual_report_2002.pdf. Retrieved 10 December 2010. 
  4. ^ "Executive Secretary’s Report". 2000. http://www.sec.ecowas.int/sitecedeao/english/es-rep2000-3-5.htm. Retrieved 10 December 2010. 
  5. ^ "Regional group suspends Niger on disputed election". news.yahoo.com 20 October 2009
  6. ^ "Cote d'Ivoire expelled from Ecowas". aljazeera.net 7 December 2009
  7. ^ a b Zhang Xiang (2009-10-21). "ECOWAS suspends Niger for defiance of election ban". Xinhua News Agency. http://news.xinhuanet.com/english/2009-10/21/content_12288871.htm. Retrieved 2009-10-24. 
  8. ^ "Africa trade bloc suspends Niger". BBC. 2009-10-20. http://news.bbc.co.uk/2/hi/africa/8316866.stm. Retrieved 2009-10-24. 
  9. ^ Felix Onuah, Randy Fabi, Jon Boyle (2009-10-20). "West Africa's ECOWAS suspends Niger over elections". Reuters. http://www.reuters.com/article/latestCrisis/idUSLK563508. Retrieved 2009-10-24. 
  10. ^ "Profile: Economic Community of West African States". 18 November 2010. http://www.africa-union.org/Recs/ECOWASProfile.pdf. Retrieved 10 December 2010. 
  11. ^ a b ECOWAS (2007) Information Manual: The Institutions of the Community ECOWAS
  12. ^ "Miss ECOWAS 2010". The Economist. 18 November 2010. http://www.economist.com/blogs/baobab/2010/11/west_african_beauty_pageant. Retrieved 10 December 2010. 
  13. ^ [1] REGIONAL INTEGRATION AND COOPERATION IN WEST AFRICA A Multidimensional Perspective, Chapter 1. Introduction: Reflections on an Agenda for Regional Integration and Cooperation in West Africa
  14. ^ “Economic Community of West African States (ECOWAS)” fact sheet from the US Department of State’s Bureau of African Affairs
  15. ^ “Annual Report on Integration in Africa 2002” All Africa, 1 March 2002
  16. ^ 2007 Rail link ECOWAS countries

External links

India's fake degrees market is booming

Source: Emirates247.com
Buy an MBA for Dh20,000 ($5,445 US), or a bachelor’s for Dh5,000 ($1,361 US)
UAE bustling market for fake degrees; Vice-Chancellor of top Indian university confirms scam exists
By Joseph George
Published Sunday, January 30, 2011
Fake degrees, but real certificates.
A thriving illegal racket in the subcontinent – specifically India and Pakistan - has now spilt over into the UAE with all sorts of educational qualifications up for sale.

For as little as Dh20,000 one can buy an MBA degree certificate from India while, a graduate degree certificate will cost you only Dh5,000 ($1,361 US).

A diploma in a computer course is in demand and therefore, sells for Dh8,069.

Getting a job and a decent pay-scale in the UAE often hinges on the degrees one possesses – especially if one is from the subcontinent.

For a sales person, having an MBA could mean a salary increase of as much as Dh5,000 ($1,361 US).

A degree certificate also ensures better visa status and could be the difference between an expatriate getting a family visa or not.

Which is why, the UAE is a bustling market for these fake degrees.

What makes them so unique is that the certificates are actually issued by a real university. This is why attestation is also possible.

However, the buyer just pays up and has never attended the university or an exam.

The Vice-Chancellor of one of India's largest universities - in terms of student enrolment –confirmed to Emirates 24|7 that the scam exists, he is aware of the issue and that the Indian government is taking measures to curtail the practice.

“There are many cases involving various universities. We are aware of the problem and strict measures are being put in place,” Rajasekharan Pillai, Vice- Chancellor of India's Indira Gandhi National Open University said.

A salesman working in the hospitality industry here in the UAE told Emirates 24|7 how he has paid an Indian agent Dh10,000 for an MBA.

“They will ensure your name is on the college rolls you get your certificate. Sometimes the use distance education programmes, so it’s almost impossible to detect,” he says.

Tariq S (name changed), who until recently worked in a furniture store in Dubai says he managed to get a BBA degree in a similar way.

“I tried doing it on my own. I could not dedicate time to study nor write thee exams. Finally I paid up this agent in India and managed to get my degree,” he said.

According to him it is all carefully managed. “You are only accepted by an agent, provided you are referred by one of his earlier customers,” says Tariq.

Cops on the hunt

In June 2010 police in Bangalore, India, busted a major fake degree certificate racket.

Police later said the men used to sell fake degree certificates, mark sheets, and transfer certificates of various universities to students who had otherwise failed in their examinations.

Some of the beneficiaries were employed with multi- national companies, police claimed.

Also in 2010, two men were arrested by the police in Kerala, India, for supplying forged certificates to passport applicants. Police found and seized fake degree certificates of Kerala University and voter IDs.
Police said the fake certificates were being used to help the applicants get jobs abroad.

The Mumbai State Education Department on January 3, 2011, found at least five teachers used fake bachelor of education (BEd) and Bachelor of Arts (BA) degree certificates to secure jobs in schools.

Pakistan affected too

Pakistan too has launched a major investigation into alleged fake degrees submitted by several of its members of parliament.

According to a report by The News International, the Election Commission of Pakistan (ECP) last week expressed doubts over the eligibility of as many as 298 legislators, including Foreign Minister Shah Mehmood Qureshi, Federal Law Minister Dr Babar Awan, Information Minister Qamar Zaman Kaira and Opposition Leader in the National Assembly Chaudhry Nisar Ali Khan.

The ECP doubted the lawmakers’ eligibility as they had failed to provide copies of their metric and intermediate certificates despite reminders, which impedes the process of verification of graduation degrees and educational certificates, as directed by the Supreme Court.

Destination UK

According to a report published by the UK's Daily Express last week, a large number of fake degree holders enter the UK every year to work as illegal workers.

The report, quoting MigrationWatch, says that almost 32,000 of the more than 250,000 foreign students arriving in the UK every year are bogus students as there are no interviews before a visa is issued and no checks are made on their departure.

“While student applications to the UK from Nepal increased by more than 1,000 per cent, those from Bangladesh increase by over 300 per cent, while those from India were up by 88 per cent. Since March 2009, 56 educational establishments have had their licences revoked for helping students breach visa laws,” the report added.

Possible answer

The Indian Ministry of Human Resource Development (MHRD) said the issuance of fake degree certificates and forgery of mark sheets could soon come to an end with the finalisation of proposals for dematerialising such certificates.

The ministry is considering request for proposals (RFPs) from two depositories – National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) – for running the project thereby establishing a national database of academic qualifications (degree/certificates from school to graduate/postgraduate level including professional degrees), that would be created and maintained in an electronic format by a registered depository.

All mark sheets and certificates will be dematerialised a data base will be maintained by the respective depositories.

Hillary Clinton Visits Haiti amid election offset

Source: Bloomberg Business Week
Clinton Visits Haiti Beset by Undecided Election
January 30, 2011, 11:31 AM EST
By Nicole Gaouette

(Updates with Clinton and Egypt in second paragraph.)

Jan. 30 (Bloomberg) -- Secretary of State Hillary Clinton is scheduled to visit Haiti today to meet with Haitian President Rene Preval and presidential candidates as the outcome of Haiti’s election remains undecided and the effort to rebuild after last year’s earthquake is drawing criticism.

“I’m going to do my own assessment about the way going forward,” Clinton told reporters traveling with her to Haiti today after she appeared on U.S. Sunday morning talk shows to urge elections in Egypt, where tens of thousands of demonstrators are demanding the ouster of President Hosni Mubarak.

The top U.S. diplomat had planned to visit the Caribbean nation earlier, shortly after Haiti marked the one-year anniversary of the 7.0 earthquake that struck on Jan. 12, 2010.

Presidential elections held Nov. 28 were marred by violence and allegations of fraud, with 12 of 18 presidential candidates calling for the vote to be annulled. A second round vote is scheduled for March 20.

“There are strong indications that there was significant, you know, voter fraud and the preliminary findings do not reflect the actual voting of the Haitian people,” State Department Spokesman Philip J. Crowley said Jan. 26.

The Organization of American States urged Preval’s ruling party presidential candidate Jude Celestin to withdraw from the runoff race after a recount showed him finishing behind Mirlande Manigat, a former first lady, and Haitian pop-singer Michel Martelly. Clinton is scheduled to meet with all three candidates.

Support for Withdrawal

“We’ve made it clear we support the OAS recommendation,” Clinton told reporters today. “This is an international message. We stood behind the OAS when they sent their independent” officials to do an election assessment, Clinton said.

Former dictator Jean-Claude Duvalier returned Jan. 16 after 25 years in exile. Former Haitian President Jean-Bertrand Aristide, ousted in a 2004 rebellion, is also seeking to return after six years of exile in South Africa.

The Haiti earthquake relief effort has been criticized by the British-based charity Oxfam, which issued a report Jan. 6 saying the relief effort was at a “standstill.”

Reconstruction Inadequate

Reconstruction has been “steady but not adequate to the task we’re facing,” Clinton told reporters today. The U.S. isn’t considering cutting aid to Haiti, she said.

Clinton’s husband, the United Nations Special Envoy to Haiti and former U.S. President Bill Clinton, acknowledged problems at the World Economic Forum in Davos, Switzerland, on Jan. 27, saying he was not satisfied by progress in rebuilding Haiti.

A survey by the Chronicle of Philanthropy found that of the $1.4 billion Americans donated to Haiti, only 38 percent has been spent to aid the country’s recovery and rebuilding effort.

Haiti, the poorest nation in the Western Hemisphere, has only received $1.2 billion of the more than $5 billion pledged in March for earthquake relief, according to a Jan. 28 World Bank report. Such aid is “essential” to rebuilding an economy that contracted by about 120 percent after last year’s quake, the International Monetary Fund said in August.

Slow Recovery

While the pace of reconstruction is “relatively slow,” the Caribbean nation is showing signs of a recovery, led by growth in agriculture, construction and textile manufacturing, the IMF said. In Haiti, 80 percent of the population lives under the poverty line, according to the CIA World Factbook. Two- thirds of Haitians rely on agriculture for their livelihood.
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The country of 10 million has a gross domestic product of $6 billion, according to the World Bank. The government relies on international aid, while remittances are the primary source of foreign exchange, equaling nearly a quarter of GDP and more than twice the earnings from exports, according to the Central Intelligence Agency website.

In 2010, the U.S. Congress extended a law to provide Haiti tariff-free access to apparel products. The apparel sector accounts for three-quarters of Haitian exports and nearly one- tenth of GDP, according to the CIA.

--With reporting by Eric Sabo in Panama City. Editor: Ann Hughey, Steve Komarow.

To contact the reporter on this story: Nicole Gaouette in Washington at ngaouette@bloomberg.net.

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Relation between Higher education and job prosperity

Source: Coshocton Tribune
Higher education key to job prosperity
High school diploma not enough in ever-changing job climate
COSHOCTON -- Jim Richesson, a 53-year-old River View High School graduate, has worked in factories and warehouses.
He's worked as a power washer, too, among many other jobs.

Unfortunately, Richesson found it difficult to find work, which is why in 2012 he will graduate with an associate degree in alternative energy technology from Zane State College.

"I'm hoping to get gainful employment in this field," Richesson said. "There weren't any jobs. You have to have an education, a field of trade, something people are hiring into."

His ability to find a job after he graduates with an associate degree will determine if he continues on to earn a bachelor's.

"I would like to stay around here," he said. "I would do just about any job."

His mentality about how far a person should go with an education and the job market isn't uncommon.

American Community Survey data shows that while more than 35 percent of 25- to 34-year-olds in Ohio from 2006 to 2008 completed an associate's degree or higher, less than 41.9 percent did overall.

Local guidance counselors and college administrators agree that anymore, a high school diploma just isn't enough.

At Central Ohio Technical College, enrollment in classes that might be related to entrepreneurship, such as accounting, fill up rapidly.

"The classes that have to do with the nuts and bolts of running your own business fill up quickly in Coshocton, and at all the campuses," said Ray Irwin, administrative dean for academic affairs at COTC.

Programs are changed as needed, Irwin said, to keep up with education needs.

The Knox and Coshocton campuses have seen a spike in students enrolling in nursing programs. To accommodate those students, the Coshocton campus developed a program with its own nursing laboratory.

Deborah Kapp-Salupo, superintendent at the Coshocton County Career Center, said the green push also will affect the natural resources program at the Career Center, as environmental jobs increase at an above average rate for the next five to 10 years.

Health career students will be able to find jobs in the area, but it might mean a short drive, depending on their career choice, she said.

She studies the trend statistics with caution.

"What trends and employment opportunities that are growing nationwide may not be the same for Ohio and most importantly, our own community or county," she said. "It's my thinking that we need to always consider our own demographics when analyzing the employment situation."

Based on a 2010 survey, about 52 percent of students would like to stay in Coshocton, or return after college or serving in the military.

Kapp-Salupo said she was surprised by the results, given local employment trends. Students are trained for jobs that do exist, but many of them are out of this area.
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John Ellis, a guidance counselor at River View High School, said that 10 years ago, there were opportunities for students to go right out of high school and get jobs.

"Now even in Coshocton County alone, you need at least an associate's degree for an entry level job," Ellis said.

Coshocton Tribune Reporter Kathie Dickerson contributed to this report.

leemoore@coshoctontribune.com; (740) 450-6758

Should you invest in the auto industry ?

Source: Los Angeles Times
Investing: Ford holds promise, but auto industry poses challenges
By Andrew Leckey
January 30, 2011
Question: I am a Ford Motor Co. shareholder. Can my shares continue their upswing?

Answer: Prospects are good, but there are challenges: The auto industry is cyclical, meeting higher fuel standards will be expensive, and labor will look to gain from the company's improved fortunes.

And despite improved quality and a more upscale image, the seller of Ford and Lincoln brands still must combat the belief held by some Americans that foreign vehicles are superior.

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Ford was the only major U.S. carmaker to avoid a federal bailout and Chapter 11, despite losing $30 billion from 2006 through 2008.
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On Friday, the company posted 2010 earnings of $6.6 billion, the most in 11 years and more than double its 2009 profit. In a sign of its improved balance sheet, the firm's automotive operations ended the year with more cash than debt.

Because the results were not as good as expected, however, Ford's shares sank 13% on Friday. That left the stock down 3.1% so far this year after gains of 68% last year and 337% in 2009. Ford's Class A shares are available to any investor. The Ford family's Class B shares give it a 40% voting stake.

Ford's overseas operations hold promise. Its India unit had a nearly threefold sales gain in 2010, while its China unit posted a 40% increase. The firm is in preliminary talks with Beijing to export more North American-built vehicles to China.

The company placed highest among the high-volume vehicle brands in J.D. Power's 2010 study of initial quality. In the U.S., its F-150 truck, Fusion, Fiesta and Focus are especially popular.

The fully electric Focus makes its debut late this year in the U.S. and next year in Europe. It will be built on the same Wayne, Mich., assembly line as the gasoline version of the car. By 2013, Ford will offer five vehicles that run on electricity, including hybrids.

The consensus analyst rating on Ford shares is a "buy," according to Thomson Reuters, consisting of four "strong buys," seven "buys," seven "holds" and one "underperform."

Yacktman fund is less affected by bubbles

Question: Please advise me about my shares of Yacktman fund.

Answer: This portfolio of fewer than 50 stocks has been a longtime winner for Donald and Stephen Yacktman, the fund's father-and-son management team.

It holds up particularly well in market downturns. Its cash component, currently 10% of assets, can run as high as 30%. It owns shares of giant consumer-product and pharmaceutical companies as well as large media firms.

The fund returned 17% in the last 12 months, ranking it below two-thirds of funds that focus on large "value" stocks. But it ranked at the very top of its category over the last three years, five years and 10 years, posting double-digit annualized returns in each of those periods.

"This is one of the best-performing funds we cover," said Ryan Leggio, mutual fund analyst at Morningstar Inc. "An investor who wants decent long-term returns in the 7-to-9% range would want the Yacktman fund, even though it might lag in a speculative bubble because it won't be chasing after stocks."

The fund, with annual expenses at 0.93% of fund assets, requires a minimum initial investment of $2,500 but imposes no sales charge on purchases of fund shares.

Andrew Leckey answers questions only through the column. E-mail him at yourmoney@tribune.com.

Copyright © 2011, Los Angeles Times

Tokyo Stock Exchange: Structure, operations.....

Source: Wikipedia
Tokyo Stock Exchange
東京証券取引所
The Stock Exchange occupies a narrow site in Tokyo's securities district
Type Stock exchange
Location Tokyo, Japan
Coordinates 35°40′57.60″N 139°46′43.71″E / 35.682667°N 139.7788083°E / 35.682667; 139.7788083
Founded 1878
Owner Tokyo Stock Exchange Group, Inc.
Key people Taizo Nishimuro, Chairman
Atsushi Saito, President & CEO
Yasuo Tobiyama, MD, COO & CFO
Currency Japanese yen
No. of listings 2,294
MarketCap US$3.1 trillion (May 2010)[1]
Volume US$3.7 trillion (Dec 2009)
Indexes TOPIX
Nikkei 225
Website TSE.or.jp
The Tokyo Stock Exchange (東京証券取引所 Tōkyō Shōken Torihikijyo?), called Tōshō (東証?) or TSE for short, is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies. The Tokyo Stock Exchange had 2,294 listed companies with a combined market capitalization of US$3.1 trillion as of October 2010.[1]

Structure

The TSE is incorporated as a kabushiki kaisha with nine directors, four auditors and eight executive officers. Its headquarters are located at 2-1 Nihombashi Kabutocho, Chūō, Tokyo. "Kabutocho" is the largest financial district in Japan. Its operating hours are from 9:00 to 11:00 am, and from 12:30 to 3:00 pm. From April 24, 2006, the afternoon trading session started at its usual time of 12:30 p.m.
Stocks listed on the TSE are separated into the First Section for large companies, the Second Section for mid-sized companies, and the Mothers (Market of the high-growth and emerging stocks) (ja:マザーズ?)[2] section for high-growth startup companies. As of October 31, 2010, there are 1,675 First Section companies, 437 Second Section companies and 182 Mothers companies.[3]
The main indices tracking the TSE are the Nikkei 225 index of companies selected by the Nihon Keizai Shimbun (Japan's largest business newspaper), the TOPIX index based on the share prices of First Section companies, and the J30 index of large industrial companies maintained by Japan's major broadsheet newspapers.
89 domestic and 19 foreign securities companies participate in TSE trading. See: Members of the Tokyo Stock Exchange
Other TSE-related institutions include:
  • The exchange's press club, called the Kabuto Club (ja:兜倶楽部 Kabuto kurabu?), which meets on the third floor of the TSE building. Most Kabuto Club members are affiliated with the Nihon Keizai Shimbun, Kyodo News, Jiji Press, or business television broadcasters such as Bloomberg LP and CNBC. The Kabuto Club is generally busiest during April and May, when public companies release their annual accounts.
On 15 June 2007, the TSE paid $303 million to acquire a 4.99% stake in Singapore Exchange Ltd.[4]

History

Prewar history

The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo Kabushiki Torihikijo (東京株式取引所) under the direction of then-Finance Minister Okuma Shigenobu and capitalist advocate Shibusawa Eiichi. Trading began on June 1, 1878.
In 1943, the exchange was combined with ten other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange (ja:日本証券取引所 Nippon Shōken Torihikisho?). The combined exchange was shut down and reorganized shortly after the bombing of Nagasaki.

Postwar history

The Tokyo Stock Exchange reopened under its current Japanese name on May 16, 1949, pursuant to the new Securities Exchange Act.
The TSE runup from 1983 to 1990 was unprecedented, in 1990 it accounted for over 60% of the world's stock market capitalization (by far the world's largest) before falling precipitously in value and rankings today, but still remains one of the 3 largest exchanges in the world by market capitalization of listed shares.
The trading floor of the TSE was closed on April 30, 1999, and the exchange switched to electronic trading for all transactions. A new facility, called TSE Arrows (ja:東証アローズ Tōshō Arrows?), opened on May 9, 2000.
In 2001, the TSE restructured itself as a stock company: before this time, it was structured as an incorporated association (ja:社団法人 shadan hōjin?) with its members as shareholders.

I.T. issues

The exchange was only able to operate for 90 minutes on November 1, 2005, due to bugs with a newly installed transactions system, developed by Fujitsu, which was supposed to help cope with higher trading volumes. The interruption in trading was the worst in the history of the exchange.[5] Trading was suspended for four-and-a-half hours.
During the initial public offering of advertising giant Dentsu, in December 2001, a trader at UBS Warburg, the Swiss investment bank, sent an order of 610,000 shares in this company at 1 yen each, while he intended to sell 1 share at 610,000 yen. The bank lost £71 million.[6]
During yet another initial public offering, that of J-Com, on December 8, 2005, an employee at Mizuho Securities Co., Ltd. mistakenly typed an order to sell 600,000 shares at 1 yen, instead of an order to sell 1 share at 600,000 yen. Mizuho failed to catch the error; the Tokyo Stock Exchange initially blocked attempts to cancel the order, resulting in a net loss of 347 million US dollars to be shared between the exchange and Mizuho. Both companies are now trying to deal with their troubles: lack of error checking, lack of safeguards, lack of reliability, lack of transparency, lack of testing, loss of confidence, and loss of profits. On 11 December, the TSE acknowledged that its system was at fault in the Mizuho trade. On 21 December, Takuo Tsurushima, chief executive of the TSE, and two other senior executives resigned over the Mizuho affair.[5][7][8][9][10][11][12][13]
Wikinews has related news: Heavy selling leads to shortened session at Tokyo stock exchange
On January 17, 2006, the Nikkei 225 fell 2.8%, its fastest drop in nine months, as investors sold stocks across the board in the wake of a raid by prosecutors on internet company livedoor. The Tokyo Stock Exchange closed early on January 18 due to the trade volume threatening to exceed the exchange's computer system's capacity of 4.5 million trades per day. This was called the "livedoor shock." The exchange quickly increased its order capacity to five million trades a day.[14]

Hours

The exchange's normal trading sessions are from 09:00am to 11:00am and from 12:30pm to 3:00pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[15] The exchange is closed for the following holidays: New Year's Day, Coming of Age Day, National Foundation Day, Vernal Equinox Day, Shōwa Day, Constitution Memorial Day, Greenery Day, Children's Day, Marine Day, Respect for the Aged Day, Autumnal Equinox, Health and Sports Day, Culture Day, Labour Thanksgiving Day, and The Emperor's Birthday.[16]

Alliances

The London Stock Exchange (LSE) and the TSE are developing jointly traded products and share technology, marking the latest cross-border deal among bourses as international competition heats up. The TSE is also looking for some partners in Asia, and more specifically is seeking an alliance with the Singapore Exchange (SGX), which is considered as becoming a leading financial hub in the Asia-Pacific region. Recently, some rumors close to the deal suggest that the TSE is preparing for a takeover of the SGX, or at least take a major stake, in the first semester of 2008. The TSE has already acquired a 5% stake in the SGX as of June 2007, deemed to be only the beginning of greater participation.
In July 2008 the London Stock Exchange (LSE) and the TSE announced a new joint venture Tokyo-based market, which will be based on the LSE's Alternative Investment Market (AIM).[17]

See also

PrefSymbol-Tokyo.svg Tokyo portal

References

  1. ^ a b "Japan's Tokyo Stock Exchange is the second largest stock market with a market value of $ 3.1 trillion.". Economic Times. June 19, 2010. http://economictimes.indiatimes.com/markets/global-markets/China-becomes-worlds-third-largest-stock-market/articleshow/6068129.cms. Retrieved 19 Jun 2010. 
  2. ^ Tokyo Stock Exchange. "Mothers". http://www.tse.or.jp/english/listing/mothers/index.html. Retrieved April 8, 2010.  (English)
  3. ^ Tokyo Stock Exchange. "Breakdown of TSE listed stocks". http://www.tse.or.jp/english/listing/breakdown/index_e.html. Retrieved April 8, 2010.  (English)
  4. ^ Yasu, Mariko (2007-06-15). "Tokyo Stock Exchange Buys 4.99% of Singapore Exchange (Update2)". Bloomberg. http://www.bloomberg.com/apps/news?pid=20601080&sid=aZ2hmIz6eyrw&refer=asia. Retrieved 2010-07-10. 
  5. ^ a b Fujitsu execs take pay cut after Tokyo exchange crash, 25th November 2005
  6. ^ Fat fingered typing costs a trader’s bosses £128m
  7. ^ Tokyo Exchange Struggles With Snarls in Electronics NY Times,December 13, 2005
  8. ^ "What's Going on at the Tokyo Stock Exchange - Seeking Alpha". Japan.seekingalpha.com. http://japan.seekingalpha.com/article/5077. Retrieved 2010-07-10. 
  9. ^ Tokyo Stock Exchange admits error in Mizuho trade botch-up, 12 December 2005
  10. ^ Mizuho Says Trader Error to Cost It at Least $224 Mln (Update5), Bloomberg, December 9, 2005
  11. ^ "archives". Taipei Times. 2005-12-10. http://www.taipeitimes.com/News/worldbiz/archives/2005/12/10/2003283851. Retrieved 2010-07-31. 
  12. ^ "Tokyo Stock Exchange plans cash settlement in Mizuho fiasco - report". Forbes.com. November 12, 2005. http://www.forbes.com/finance/feeds/afx/2005/12/11/afx2383299.html. Retrieved 2010-07-10. 
  13. ^ "Botched stock trade costs Japan firm $225M - Business - World business - msnbc.com". MSNBC. 2005-12-14. http://www.msnbc.msn.com/id/10394551/. Retrieved 2010-07-10. 
  14. ^ After Panic, Tokyo Market Rebounds, NY Times, January 19, 2006
  15. ^ Market Hours, Tokyo Securities Exchange via Wikinvest
  16. ^ http://www.tse.or.jp/english/about/calendar.html TSE : Calendar
  17. ^ Ku, Daisy (July 29, 2008). "London bourse outlines framework for Tokyo JV | Reuters". Uk.reuters.com. http://uk.reuters.com/article/mergersNews/idUKL920962620080729?pageNumber=1&virtualBrandChannel=0. Retrieved 2010-07-10. 

Further reading

Wikimedia Commons has media related to: Tokyo stock exchange
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