|
Liquid tradable securities (or LTS) is a generic phrase which includes a wide range of financial instruments. This term is often used to differentiate financial instruments which are easily tradable (or tradeable) as opposed to those which require the permission of the company or a signed document which registers the transfer of securities between two market participants. Another way to look at it is the difference between how a person buys a fund (collective investment scheme) and how they buy a bond or share. Liquid Tradable Securities come in many forms and with a wide variety of acronyms. These include stocks and bonds as well as exchange-traded funds, exchange traded commodities, exchange-traded notes (including certificates), REITs, as well as most OTC securities. It is important to note that these do not include Swaps or repurchase agreement (repos) which are contractual arrangements and as such are not tradable. This is a wider definition than the definition of transferable securities under MiFID〔See Article 4(1)(18) http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:145:0001:0044:EN:PDF〕 LTS advantage over collective investment scheme LTS' offer a significant advantage over collective investment schemes. Collective investment schemes (or CIS or UCIS) come in many legal forms. What is common in each legal form is the existence of a shareholder register; according to the laws of most jurisdictions, an entry in the shareholder register must be accompanied by a signed declaration to invest. Equally, a transfer of shares in a collective investment scheme is usually not allowed without the signed consent of the company. These procedural requirements limit the ability of shareholders to trade their shares. Of course, there are a small subset of collective investment schemes which are electronically tradable through stock exchanges (most notably REITs). However, the vast majority of collective investment schemes require these procedural steps.〔http://www.legislation.gov.uk/ukpga/2006/46/part/8/chapter/2 and related sections〕 LTS' on the other hand have no such limitations. Securities which are LTSs are most commonly represented by dematerialised certificates or immobilisation conditions (according to US IRS definitions).〔http://www.irs.gov/pub/irs-drop/n-12-20.pdf〕 LTS' are held in a global note form and deposited with a central securities depository (CSD). The simplifies the administrative procedures of buying and selling and reduces both the costs of administration for the company and the cost of compliance. The benefit for investors is the ease of trading. Positions can be sold without consent of the company and it is perfectly feasible for active secondary market sales to take place unbeknownst to the company. Many exchanges provide a list of tradable instruments (either in the form of a requirements for listing or as a searchable function).〔http://www.six-exchange-regulation.com/admission/listing/equities/securities_en.html〕 LTSs simply the compliance requirements of fiduciary trustees and financial advisers as they usually include a standard set of documents (including the form of the global note), an information memorandum or prospectus, and a term sheet. The approval of the CSD is critical to this process; all instruments are verified before the issue of an ISIN number and the creation of the dematerialised security is handled by the CSD. The criteria for acceptance are quite strict. 〔https://www.euroclear.com/dam/Brochures/Annex5-PGM-from%20MA1521%20-%20ISMAG%20MPB.pdf〕 IRS regulations stipulate particular requirements for tradable securities which generally describe the characteristics necessary for an LTS (according to IRS definitions, at least).〔http://www.irs.gov/Retirement-Plans/Employee-Plans-News--ESOPs--Definition-of-Readily-Tradable-Employer-Securities〕 ==References== 〔 * * * * 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Liquid tradable securities」の詳細全文を読む スポンサード リンク
|