[GA - Passed] Repeal "Stock Exchanges and Foreign Investment"

[Magecastle]

Repeal "Stock Exchanges and Foreign Investment"
Category: Repeal | GA #401
Proposed by: Magecastle Embassy Building A5, Co-authored by: Simone Republic | Onsite Topic
Replacement: None​

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The World Assembly,

Recognising that GA #401 establishes the International Securities and Exchange Commission (ISEC), and directs it to enact regulations on currency exchange in order to "prevent artificial manipulation of the exchange rate [and] ensure that [currency] exchanges operate without bias toward the citizens of any one nation",

Disheartened that the resolution fails to clearly delineate what regulations the ISEC would enact to further these goals,

Further noting that the resolution's ambiguity on what constitutes "artificial manipulation of the exchange rate" severely limits the ability of a member nation to engage in currency intervention operations, such as to stabilise its currency's exchange rate,

Baffled that the definitions on stocks, bonds, and securities in GA #401 are very poorly written, excluding such instruments as preferred stocks, pay-in-kind bonds, convertible bonds, and insurance-linked securities, and thus leaving the ISEC to offer inferior and potentially misleading recommendations to member nations in its "model code of securities regulations",

Repeals "Stock Exchanges and Foreign Investment".

Note: Only votes from TNP WA nations and NPA personnel will be counted. If you do not meet these requirements, please add (non-WA) or something of that effect to your vote.

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Voting Instructions:

• Vote For if you want the Delegate to vote For the resolution.
• Vote Against if you want the Delegate to vote Against the resolution.
• Vote Abstain if you want the Delegate to abstain from voting on this resolution.
• Vote Present if you are personally abstaining from this vote.

Detailed opinions with your vote are appreciated and encouraged!

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For	Against	Abstain	Present
19	0	0	1

 

[Magecastle]

Overview
This proposal seeks to repeal GAR#401, "Stock Exchanges and Foreign Investment". The authors provide several reasons as to why this resolution should be repealed. First, they argue, GAR#401 does not outline any specific regulations that the International Securities and Exchange Commission (ISEC) would establish pursuant to the goals of the proposal. Secondly, they argue that what exactly constitutes "artificial manipulation of the exchange rate" is not defined, which may hamper exchange rate interventions by member states during periods of crisis. Finally, they argue that the definitions set forth in GAR # 401 are of poor quality, contain omissions, and cause the ISEC to provide misleading advice to member states.

Recommendation
We find ourselves in agreement with the authors of this repeal. As pointed out by the authors, the definitions of stocks, bonds, and securities are indeed very poorly written, and exclude numerous concepts and instruments found within modern economics and trade. The target resolution's ambiguity on what constitutes "artificial manipulation of the exchange rate" has severe national security implications, as currency rate interventions are often necessary to combat market volatility. Lastly, by failing to properly define the scope of the ISEC's regulatory activities, there is an uncomfortable level of power afforded to it when it comes to a nation's ability to regulate and manage its currency and its relationship with the exchange market.

For the above reasons, the Ministry of World Assembly Affairs recommends a vote For the GA proposal at vote, Repeal "Stock Exchanges and Foreign Investment".

 

[Magecastle]

I do not disclaim obvious bias; however, given that the only mandate of the target is a vague, poorly thought-out deference to a committee, and even its recommendations are poorly thought-out, I see little reason not to repeal this.

 

[Hulldom]

For

 

[TheLandOfFunFunFun]

For

 

[Loh]

For

 

[Vexilia]

For. The Comrades' Assembly has spoken.

 

[nvxl]

For

 

[Fregerson]

For

 

[Jag]

For

 

[Elfnotonashelf]

For.

 

[Fili]

For

 

[Simone]

Present, as by convention I don't vote on resolutions on which I am listed as an author. For those not on Discord, this was a compromise proposal reached over discussions on the TNP staff discord. I felt it was important to get on the record that the "recommendations" in GA#401 were lousy and misleading.

Further comment: there is no direct replacement per se but I have been drafting various resolutions related to financial markets, which indirectly serve as replacements. GAR#633 is a start ('Independent Investment Research Protocol') and "Sophisticated Investors Protocol"* is another.

* https://forum.nationstates.net/viewtopic.php?f=9&t=525547

 

[Zash]

For

 

[Daijaqnida]

For

 

[Space Cat]

For

 

[Silverdashmax]

For

 

[Plague]

For.

 

[Comfed]

For

 

[Healiopolis]

For

 

[Chipoli]

For

 

[Kenmoria]

(Non-WA) I am strongly for this. I make this point better on the forums, but, in brief, the targeted resolution is boring. By leaving everything to a committee, there is less material on which to roleplay, not to mention fewer substantive clauses to debate. Though the entire GA being run by a flawless committed might be logical, it is far from entertaining.

 

[Namwenia]

For

 

[Norvoz]

For

 

[Simone]

Repeal "Stock Exchanges and Foreign investment" was passed 14,139 votes to 709. (95.2% for). This is the 14th resolution for Magecastle/ The Ice States (and his other accounts), fourth for (ahem) yours truly.