Foreword and Impact of Market 2000 Study

Abstract

SPECIAL SECTION: SECURITIES FOREWORD AND IMPACT OF MARKET 2000 STUDY Samuel C. Thompson, Jr.t This issue of the Pacific Basin Law Journal contains three articles dealing separately with securities regulation in Taiwan', Singapore, 2 and China 3 . These articles are being published shortly after the January 27, 1994 release by the Division of Mar- ket Regulation of the United States Securities and Exchange Commission of its report on the U.S. equity markets: Market 4 2000: An Examination of Current Equity Market Developments. t Professor, UCLA School of Law. 1. Jeffrey H. Chen & Jack J.T. Huang, Taiwan's Evolving Stock Market Policy and Regulatory Trends, 12 UCLA PAC. BASIN L.J. 34 (1993). 2. Michael S. Bennett, Securities Regulation in Singapore: The City-State As An International Financial Center, 12 UCLA PAC. BASIN L.J. 1 (1993). 3. Andrew Xuefeng Qian, Riding Two Horses: Corporatizing Enterprises and the Emerging Securities Regulatory Regime in China, 12 UCLA PAC. BASIN L.J. 62 4. DIVISION OF MARKET REGULATION, U.S. SECURITIES AND EXCH. COMM'N, MARKET 2000: AN EXAMINATION OF CURRENT EQUITY MARKET DEVELOPMENTS (1994) [hereinafter MARKET 2000 STUDY]. The Securities and Exchange Commis- sion's published its last comprehensive study of the equity markets in 1971. INSTrTU- TIONAL INVESTOR STUDY REPORT OF THE SECURITIES AND ExcH. COMM'N, H.R. Doc. No. 64, 92nd Cong., 1st Sess. 1 (1971). In response to that study and to Con- gressional hearings, in 1975 Congress enacted Section 11A of the Securities Ex- change Act of 1934. 15 U.S.C. § 78k-1 (1992). Section 11A(a)(1) sets forth certain findings of Congress to the following effects: (1) the securities markets are an important national asset, (2) new technological developments create the opportunity for more efficient and effective market operations, (3) the linking of markets will contribute to the best execution of or- ders, and (4) it is in the public interest to assure economically efficient execu- tion of securities transactions, fair competition among brokers, the availability of information with respect to quotations in securities, the execution of investors' orders at the best market price, and where appropriate, the execution of investors' orders without par- ticipation of a dealer.