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A Study On The Law Applicable To Cross-border Securities Transactions In The Indirect Held System

Posted on:2006-05-24Degree:MasterType:Thesis
Country:ChinaCandidate:T LiFull Text:PDF
GTID:2166360182965989Subject:International Law
Abstract/Summary:PDF Full Text Request
During recent years, the indirect holding system of securities has experienced rapid development due to its quickness and convenience, though lack of the conflict rules regulating cross-border securities transactions under such system. Traditional ways such as the lex situs cartae cannot fit well the indirect holding system. Some solutions have been found to settle the problem, including recent local legislation in some states and relevant Directives of EU. The Hague Convention on the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary(the Hague Convention) which adopts the PRIMA rule generally and formally is also involved. The approach of the Hague Convention is considered to be a succession and development of the traditional lex situs way.Chapter 1 of this paper begins by introducing the indirect holding system and making a distinguish between the non-fungible account and fungible account. Chapter 2 analyses the nature of the res that is transacted under the system, some local legislation combined. After pointing out the fatal flaw hidden under the theory of co-property rights or contractual rights, the securities entitlement is argued to be more acceptable. Chapter 3 follows with a review of two important cases, then demonstrates that the theory of lex situs will allow its application under the indirect holding system. A close analysis of the various methods, such as See-through Approach, the Law of the Place of the Register, Lex Loci Actus and Trust Approach, will be put forward. After that it will focus on the PRIMA rule, its origin and its application in actual cases. The final chapter of this paper will consider the Hague Convention and some relevant European pieces of legislation, while more attention will be located in the former and a number of different view of applying PRIMA rule will also be examined.
Keywords/Search Tags:indirect holding system, the PRIMA rule, the Hague Convention
PDF Full Text Request
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