General Assembly Resolution # 401
A resolution to reduce barriers to free trade and commerce.
Category: Free Trade
Proposed by: United Federated States of Omega
Recognizing that stock exchanges provide corporations and governments the ability to raise funds,
Further recognizing that there is a significant amount of capital that could be invested outside of any given countrys borders,
Also noting that nations which have invested in the economies of other nations are less likely to enter an armed conflict,
Acknowledging that there are certain barriers, like exchange rates, to international investment,
Believing that foreign investment provides a way for corporations and governments to raise more funds than may have been previously available to them, hereby:
Defines, for the purposes of this resolution,
'stock' as a portion of ownership in a corporation,
'bond' as a certificate showing the ownership of a specific amount of debt to be paid back, with interest, at a later date specified at the time the bond was bought,
'tradable derivative' as a tradable contract, which derives value from specific currencies, commodities or stocks,
'security' as a document, be it physical or otherwise, attesting to the ownership of stocks, bonds, or a tradable derivative,
'stock exchange' as a platform, be it physical or otherwise, on which securities are bought and sold, and
Recommends that all stock exchanges headquartered within a member state be open to the citizens of any World Assembly member state unless this section is:
waived between the investors and exchanges of nations engaged in a direct military conflict, embargo, or as part of sanctions, or
waived for any specific individual or group that has been found guilty of a crime related to the buying and/or selling of securities or any individual or group found guilty of a crime that was facilitated by the buying and/or selling of securities;
waived for any specific individual or group that has violated WA legislation
Establishes the International Securities and Exchange Commission (ISEC) to develop, maintain, and publish a model code of securities regulations, which may act as a guide for member state governments;
Empowers the ISEC to regulate the exchanges on which currencies are traded to prevent artificial manipulation of the exchange rate and to ensure that these exchanges operate without bias toward the citizens of any one nation.
Reserves the right for member states to implement whatever regulations they see fit on domestic exchanges, within the confines of current WA legislation.