Millionday Roundtable 5/23/14 Part 2
Welcome To Friday Roundtable With Millionday!
[millionday] Preliminary results show that Prime Minister Nouri Maliki’s State of Law alliance won last month’s parliamentary elections in Iraq, but fell short of a majority.
The Independent High Electoral Commission (IHEC) said State of Law had taken 92 of the 328 seats in the Council of Representatives, putting it in the lead in 10 of the 18 provinces, reports BBC News.
Its two main Shia rivals, Ammar al-Hakim’s Muwatin and the Ahrar movement loyal to Moqtada al-Sadr, followed with a combined 57 seats.
[millionday] More than 9,000 candidates and 276 political entities contested the elections on 30th April. An estimated 62% of the 22 million eligible voters cast ballots.
The Special Representative of the United Nations Secretary-General for Iraq (SRSG), Mr. Nickolay Mladenov, welcomed the announcement saying: “As the people of Iraq have now spoken, I call upon all elected representatives to work together for the future of Iraq.”
The US embassy said the election was “a testament to the courage and resilience of the Iraqi people, and another milestone in the democratic development of Iraq“.
[millionday] lets look at it again
[millionday] As part of an effort to liberalize the economy, in the first three months of 2014, the Iraqi Central Bank granted approval of 15 Arab and international banks to open branches in Baghdad, with additional branches expected to open soon.
There is also a notable drive to grow and promote the stock markets, with senior Iraqi government officials and representatives from the country's two stock exchanges hosting a two-day forum in Dubai May 14-15 in a bid to court regional investors.
millionday] The Iraq Stock Exchange (ISX) is currently in the process of upgrading to the latest Nasdaq trading platform after signing an agreement with Nasdaq OMX in June 2013.
The new platform, currently used by more than 25 exchanges globally, is capable of supporting multiple asset classes, although the ISX concentrates mainly on cash equities.
[millionday] Taha Ahmed al-Rubaye, chief executive of the ISX, said, “We will complete the implementation at the end of June, and it will go live at the beginning of July.” He also added, “We are working hard to modernize the exchange.”
[letsroll] So the term live in july may not be isx global trading in july just hooked to the new nasdaq system by then ... I know no one can answer that with certainty ... cheers
[millionday] note -- live meaning the change to the new platform
[millionday] lets look at the rest -- The ISX is also assisting the Erbil Stock Exchange (ESX), the first exchange in Iraq’s semi-autonomous Kurdistan region, in setting up its Nasdaq trading system.
It is due to be fully implemented in July, and the ESX hopes to see around five to 10 listings by the end of 2014, including a major telecom company. The ESX has $8 million in initial capitalization and 56 shareholders, primarily from the private sector.
[millionday] note -- the isx is also going to help kurdistan do the same with their platform
[jtank] Md -I read that they were looking for a host bank--something like that, to complete the exchange?
[millionday] hold on hun there is more coming
[millionday] Mr. Rbaya said, “We’re looking to have more than one financial center in Iraq. Maybe in the future we will also look at setting up an exchange in Basra.
” Rubaye is also preparing to tackle an issue that has dogged the ISX since its establishment in 2004. “Once we have gone live with our new Nasdaq trading platform in July, we’re going to invite foreign banks to submit their proposals to operate as a custodian.”
The lack of a custodian is viewed as the biggest hurdle to expanding the exchange and attracting foreign investors. Aside from political risk, they are also concerned about third-party risk in the absence of custodian services
larrykn] I'm sorry but if they are going to start trading then they have to have a rate that they can use
[millionday] note -- they then are going to invite foreign banks as a custodian to expand the exchange and attract foreign investors -- foreign investors is very very important -- and hard to do contained in just iraq
[joekid] Already trading with Nasdaq platform.http://ir.nasdaqomx.com/releasedetai...leaseID=774435
[jtank] what are custodian banks purpose?
[millionday] more coming
larrykn] who would trade anything without knowing what it is worth
[millionday] “The biggest challenge is the custody issue,” says Sadeer Munir, managing director of the Baghdad-based financial advisory firm Melak Iraq.
“I can’t remember the number of times we have had discussions with investors about custody. Big institutions are shying away from the market, as they don’t have a custodian they can work with.
Resolving that issue will serve as a big catalyst to growing the market! If you compare the size of the ISX to that of surrounding countries, it’s easy to see that it should be a lot larger.”
[millionday] note -- the very key point is the foreign investors
[Msculver] jtank keep the dust off the money
[millionday] With 84 listed companies, the ISX has a market capitalization of $9.5 billion to serve a population of 30 million, an amount substantially smaller than other oil-dependent markets in the Gulf Cooperation Council, which range in size from $208 billion in the United Arab Emirates to $479 billion in Saudi Arabia.
Toward the end of 2013, the ISX asked the Iraqi Securities Commission (ISC), which regulates the stock market, to ease the requirements for custodians.
millionday] last part >> In the past, industry insiders have complained that the proposed capital requirement set by the ISC was too onerous. “The original requirement was $50 million, which is a large amount for such a small market,” said a source who requested anonymity.
“My understanding is that some of the big banks are now looking at offering their services in this regard,” said Sanjay Motwani, president of Sansar Capital, which runs one of the largest equity funds in Iraq and has invested some $27 million since 2011.
“Some of the major foreign banks have entered Iraq in the last couple of years, and they’ve said that custody is something on their template. So I’m hopeful that a custodian will be appointed and once it has, I wouldn't be surprised if it led to a 300% re-rating in the market, because there will be a huge wall of money hitting Iraq."
[popeye7] Msculver lol
[millionday] a huge wall of money hitting Iraq is very telling in itself and may not mean much to some of us but to me -- where is this big wall coming from? could it be the market economy ?
[letsroll] huge wall of money Boom
[joekid] Larrykn trading is in Iraq in dinar to dinar, it is worth 1166 right now. We hope that they do Indeed connect to world wide trading but because they are "going live" July 1, with what is a new upgraded version of Nasdaq OMX does not mean that they will automatically switch to world trading. They could and would need this system to do it, but does not mean they have to then. When they do then yes they would need a reality rate.
[millionday] so let me tell you what a custodian does
[millionday] lets not just chat with one person hun -- lets all chat
[larrykn] joekid 1166 is just a holding rate they need to do better then that
[millionday] actually they will need a reality rate before they go to the globe it is an imposed rate
[larrykn] ty md
[millionday] not a rate of any calculation what so ever imposed
[joekid] Was not meant as offensive, but I see people pinning hopes on July 1 , I did myself until I did research and came to other conclusions. Sorry
[Pablo] so, based on that, what's the latest they could go before an RV?
[jeffusa] millionday hello Champ
[millionday] they will not go live on the day the reality rate is released -- that is not a possibility
[millionday] joekid no problem -- just dont want people to feel left out in discussion at roundtable --
millionday] many opinions are more than welcome -- in fact we want your opinions brought in -- much more fun and interesting
[lstar877] So june sometime. I'm only guessing
[millionday] jeffusa hey hun good to see ya
[letsroll] millionday not to change the subject from the huge wall of money ... smilen... but 4 iraq to become full wto members is it required to not have dual currency's in use ....
[millionday] i actually enjoy hearing all of your opinions
[millionday] brb with what a custodian does and why the stock market is stating it is important
[popeye7] jeffusa.. Yup, she whopped us... lol
[larrykn] I think once they know Maliki is gone the cbi might pull the trigger at anytime thereafter
[millionday] when they want 50,000 to invest --- it is untouchable by some -- make sense ?
[jtank] got u good-
[jeffusa] popeye7 my computer crashed at 10:59..
[millionday] so the little guy has not a chance and the stock market is a huge market for citizens
[jtank] Intermediate bank sort of like escrow?
millionday] now this would be why i disagree
[Pablo] Poppy's been recommending that we stay away from the stock market.
[millionday] not that i dont like other opinions but this is why i disagree and stand by what i say as to where we are headed -- let me have the floor
[millionday] A custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm's or individual's financial assets and is not necessarily engaged in "traditional" commercial or consumer/retail banking such as mortgage or personal lending, branch banking, personal accounts, ATMs and so forth. The role of a custodian in such a case would be to::::
[millionday] hold in safekeeping assets/securities such as stocks, bonds, commodities such as precious metals and currency (cash), domestic and foreign arrange settlement of any purchases and sales and deliveries in/out of such securities and currency collect information on and income from such assets (dividends in the case of stocks/equities and coupons (interest payments) in the case of bonds) and administer related tax withholding documents and foreign tax reclamation
[jtank] Whooo hoooo
millionday] SMILE there is more brb
[jtank] wowzer md
[joekid] Much like JP Morgan?
[millionday] Custodian banks are often referred to as global custodians if they safekeep assets for their clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks with which they contract to be in their "global network" in each market to hold accounts for their respective clients.
Assets held in such a manner are typically owned by larger institutional firms with a considerable amount of investments such as banks, insurance companies, mutual funds, hedge funds and pension funds.
[millionday] note ----all of which are great additions to any stock market and of economic reform
[jtank] They have to have that bank for global-
[popeye7] So it would stand to reason that the reality rate would be up before July 1st...
[letsroll] millionday ... awesome... Ty and all 4 RT back to work... Go custodian bank and wall of money
[millionday] of course this is the best part -- because they are already there so as we know most news that we get could have much more with it if we had our way or at least be on time -- as we can see by this ---- it could be possible that this has already been done
[millionday] By far, the 4 largest custodian banks in the world are: The Bank of New York Mellon JPMorgan Chase State Street Bank and Trust Company Citigroup
[millionday] so we have citigroup there-- jp morgan there as well -- very nice
jtank] Citi is in Iraq
[millionday] so the entry of a wall of money in iraq has to be from something and the banking services hook the banking of iraq to the globe electronically - not rocket science smile -- i love anything that reads atm lol -- thanks for your help rudie and thank you all for your help
[popeye7] Thanks millionday... God bless you... have a great day..
[lstar877] Thank u so much!!!
millionday] thank you for the input -- that is why i love roundtable -- it is when we can chat it up so had a great time
[ggrr] millionday I think all those banks, companies etc, went to Iraq cause there gonna stay poor and lowest value currency forever lol
[millionday] ggrr lol
[Signman] I just got here above you said something about that you said is possible it's already done what's that mean?
ten4god] md any definitive news on 13303 not being renewed?
[millionday] ten4god no but huge other info it gives on what other benefits the US retains by its extension -- when it was written there was huge controversy of why it was written and what the American gain was -- but nothing on if it is going to be extended
[ggrr] Signman we all cashed out and you were to late lol
[Signman] Figures lol
[millionday] Signman that the custodians are already in place and accounts ready and they are ready -- they have been in the country for some time
[millionday] please do understand with july 1st being the platform date it does not mean it is the date of the reality rate -- know that -- no promises at all ---
[millionday] we are just watching preparations --