| With the advancement of intermediated systems coupled with the rapid development of information technology, securities holding patterns have drastically changed from direct holdings to intermediated holdings, which facilitated the explosive increase of securities transactions during the last half century. In intermediated systems, traditional functions of securities certificates have faded away and intermediated securities credited to securities account books play a key role in determining proprietary issues. In spite of the innovative development of intermediated systems, legal regimes for the systems have not kept up with the development of the systems. Specifically, there has been much legal hindrance in cross-border securities transactions.;In the private international law analysis, this thesis finds the traditional lex rei sitae (or the lex situs), which calls for application of the law of the place where securities are located, is no longer a proper connecting factor in proprietary issues of an intermediated securities disposition, given that the location of securities has no meaningful function in intermediated systems. The Hague Securities Convention, which refers to the PRIMA (Place of Relevant InterMediary Approach) that localises an intermediary, went beyond the PRIMA and selected its primary rule in an account agreement between an account holder and his intermediary. This thesis examines the Convention in detail and concludes in favour of early adoption of the Convention in order to bring ex ante certainty and predictability in cross-border securities transactions.;In this regard, this thesis first attempts to research substantive laws for intermediated systems in the United States, the United Kingdom, Canada, Japan and Korea. The Unidroit draft convention on intermediated securities is also discussed as neutral fact-centred international substantive rules. In the substantive law analysis, this thesis suggests preparing new rules that are internally sound and internationally compatible, friendly to users and markets, and readily accessible clear, intuitive rules which satisfy basic legal needs of intermediated securities holders and ensure market efficiency and stability. |
