Soo J. Yim and Christie Farris Öberg
This paper seeks to explain amendments to NASD Rule 2320(a), commonly known as the “best execution rule”, approved by the Securities and Exchange Commission on August 21, 2006.
Abstract
Purpose
This paper seeks to explain amendments to NASD Rule 2320(a), commonly known as the “best execution rule”, approved by the Securities and Exchange Commission on August 21, 2006.
Design/methodology/approach
Explains the scope of the best execution obligation, as amended; outlines factors relevant to a best execution determination; and suggests questions broker‐dealers should consider as they review their best execution policies and procedures in light of the amendments.
Findings
Most significantly, the amendments make the rule applicable to “any transaction for or with a customer or a customer of another broker‐dealer”, thus imposing the duty of best execution on a member that executes a customer order received from another broker‐dealer. The NASD also has reiterated that debt transactions are subject to the rule. In addition, the rule amendments update certain language and add new Interpretive Material regarding certain aspects of the rule.
Originality/value
A useful interpretation of recent amendments to the best execution rule.
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Soo J. Yim, Timothy F. Silva, Stephanie Nicolas and Tiffany J. Smith
The purpose of this paper is to explain the SEC's final rule, issued on July 27, 2009, making the “close‐out” requirement in Interim Temporary Final Rule 204T permanent and…
Abstract
Purpose
The purpose of this paper is to explain the SEC's final rule, issued on July 27, 2009, making the “close‐out” requirement in Interim Temporary Final Rule 204T permanent and eliminating the short sale and position reporting requirements in Form SH.
Design/methodology/approach
The paper explains certain limited modifications to the Temporary Rule, including Rule 204(a)(1), which permits borrowing of securities to close out a fail to deliver position; Rule 204(a)(2), which defines an extended‐settlement provision for fail to deliver positions resulting from the sale of an equity security a person is “deemed to own”; Rule 204(b), which eliminates an exception for market makers; Rule 204(e), which permits a broker‐dealer to borrow a security for an early close‐out to claim a “pre‐fail credit”; and Rule 204(f), which explicitly prohibits “sham close‐out” practices. It explains the SEC's decision to eliminate the weekly requirement for certain managers to file weekly short sale and short position information on Form SH and instead to work with self‐regulatory organizations (SROs) to make short sale volume and transaction data available on their web sites.
Findings
The paper finds that the SEC intends to host a public roundtable in September 30, 2009 to discuss securities lending, pre‐borrowing and possible additional short sale disclosures.
Originality/value
The paper provides practical guidance from experienced securities lawyers.
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Brandon Becker, Bruce H. Newman, Andre Owens, Soo J. Yim and Christie Oberg
The purpose of this paper is to discuss the implications of a recent SEC settlement with Morgan Stanley & Co. (MS & Co.) with regard to: communication and coordination among…
Abstract
Purpose
The purpose of this paper is to discuss the implications of a recent SEC settlement with Morgan Stanley & Co. (MS & Co.) with regard to: communication and coordination among legal, compliance, business, and technology departments when designing, implementing, and maintaining operating systems and compliance policies and procedures; and the SEC's view of best execution in the context of net trading and market making.
Design/methodology/approach
The paper describes the Settlement Order. Itdiscusses, in light of the Order, the need for firms to coordinate among departments when they implement new systems or make changes to new systems; and provides a legal and regulatory analysis of the basis for MS & Co.'s liability, including a brief history of regulations on best execution and riskless principal trading. It also offers principal lessons to be drawn.
Findings
The Settlement Order found that MS & Co. would at times execute with the Street at a better price than it provided to a customer. The SEC noted that MS &Co. violated its duty of best execution in violation of the 1934 Exchange Act but particularly emphasized that the practice was inconsistent with MS & Co.'s established internal policies and procedures and certain disclosures provided by the firm to third‐party broker‐dealers from which it received orders.
Practical implications
Broker‐dealers need to clearly define their processes for implementing new systems or changing existing systems, including approval requirements, responsible individuals, and periodic review procedures to ensure adherence to stated policies and procedures. Broker‐dealers need to disclose net trading practices or similar trading practices to other broker‐dealers that are routing orders to them. They should also review their net trading practices in light of Regulation NMS.
Originality/value
The paper provides practical guidance and review of regulations concerning net trading, riskless principal trading and best execution from experienced securities lawyers.
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Andre E. Owens, Soo J. Yim, Beth A. Stekler and Cristie L. March
The purpose of this paper is to explain rule changes proposed by the Securities and Exchange Commission designed to address regulatory concerns related to “dark pools” of…
Abstract
Purpose
The purpose of this paper is to explain rule changes proposed by the Securities and Exchange Commission designed to address regulatory concerns related to “dark pools” of liquidity.
Design/methodology/approach
The paper explains the background and policy issues related to dark pools, discusses the SEC's amended definition of “bid” or “offer” under Regulation NMS to include “actionable indications of interest” (“actionable IOIs”), outlines a proposed reduction of the average daily trading volume threshold that triggers a public display of ATS orders from 5 percent to 0.25 percent, discusses a proposal to require an alternative trading system (“ATS”) to disclose its identity in real time on its reports of executed trades, and explains proposed size‐discovery exclusions to the changes detailed above.
Findings
The paper finds that the proposed rules represent the Commission's attempts to improve the NMS without inhibiting the use or continued technological development of trading strategies that are consistent with NMS goals.
Originality/value
The paper provides a clear explanation of complex market mechanisms and proposed rules by experienced financial institution and securities lawyers.
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Baek-Kyoo Joo, Jeong-Ha Yim, Young Sim Jin and Soo Jeoung Han
This study aims to investigate the relationship between empowering leadership and employee creativity and the mediating roles of work engagement and knowledge sharing in this…
Abstract
Purpose
This study aims to investigate the relationship between empowering leadership and employee creativity and the mediating roles of work engagement and knowledge sharing in this relationship.
Design/methodology/approach
Using the results of a survey of 302 knowledge workers from a leading telecommunications company in South Korea, the relationships among the variables empowering leadership, work engagement and knowledge sharing on employee creativity were analyzed using conducted confirmatory factor analysis and structural equation modeling. This study conducted bootstrap analyses to test the mediating effects.
Findings
Empowering leadership was positively and significantly associated with work engagement and knowledge sharing. Work engagement was significantly related to knowledge sharing and employee creativity. In turn, knowledge sharing was significantly associated with employee creativity. The direct effect of empowering leadership on employee creativity was nonsignificant, but this study found a significant indirect effect of empowering leadership on employee creativity via the significant mediating roles of work engagement and knowledge sharing.
Originality/value
This study introduced empowering leadership that may work for knowledge workers who create new ideas by analyzing data from the knowledge workers’ perceptions of their leaders in the workplace. The intuitive linkage between work engagement and knowledge sharing was empirically verified in this study. This study’s findings and implications provide direction for knowledge workers and how their managers should support employees’ work environment and activities.
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The purpose of this paper is to identify the cause how the student movement in South Korea enjoyed the golden age in the 1970–1990s and could not be revived since the late 1990s…
Abstract
Purpose
The purpose of this paper is to identify the cause how the student movement in South Korea enjoyed the golden age in the 1970–1990s and could not be revived since the late 1990s and cannot be played a pivotal role again.
Design/methodology/approach
This study adopts historical analysis as primary methodology, traced the historical evolution of South Korean student activism in the 1970–1990s through analyzing secondary Korean literature and newspaper on the particular struggle cases in the period.
Findings
Social solidarity between society and student had played a pivotal role in the South Korean students' long activism in the struggle of the 1970–1990s. In the 1970–1980s, democratic election and constitutional reform set in the main purpose of struggle that attracted wide support from society and enjoyed maintaining a new member supply and their commitment despite authoritarian government's persistent oppression. When the sixth constitution was passed in 1987 with Democratization, the student decided to choose continuing struggle and set social cooperation with North Korea as the new goal, the sensitive issue in South Korea that confronted fierce criticism. Society chose to withdraw their support to the activism in the Yonsei University incident of 1996, rung a knell of long struggle since the 1970s.
Originality/value
The research identified the cause how South Korean students in university could persist long strike without particular internal resource production during three decades and ended the long struggle in the late 1990s; the existence of social solidarity between student and society was the main reason of continued new member supply and their commitment in the battle.
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Young-Myon Lee and Michael Byungnam Lee
While the origin of Korean Industrial Relations goes back 150 years when the country opened its seaports to foreign countries, it didn’t emerge as a field of study until 1950s…
Abstract
While the origin of Korean Industrial Relations goes back 150 years when the country opened its seaports to foreign countries, it didn’t emerge as a field of study until 1950s when academics began to write books and papers on the Korean labor movement, labor laws, and labor economics. In this paper, we sketch this history and describe important events and people that contributed to the development of industrial relations in Korea. Korean industrial relations in the early 20th century were significantly distorted by the 35-year-Japanese colonial rule (1910–1945). After regaining its independence, the U.S. backed, growth-oriented, military-based, authoritarian Korean government followed suit and consistently suppressed organized labor until 1987. Finally, the 1987 Great Labor Offensive allowed the labor movement to flourish in a democratized society. Three groups were especially influential in the field of industrial relations in the early 1960s: labor activists, religious leaders, and university faculty. Since then, numerous scholars have published books and papers on Korean industrial relations, whose perspectives, goals, and processes are still being debated and argued. The Korean Industrial Relations Association (KIRA) was formed on March 25, 1990 and many other academic and practitioner associations have also come into being since then. The future of industrial relations as a field of study in Korea does not seem bright, however. Issues regarding organized labor are losing attention because of a steadily shrinking unionization rate, changing societal attitude toward labor unions, and the enactment of new and improved laws and regulations regarding employment relationships more broadly. Thus, we suggest that emerging issues such as contingent workers, works councils and tripartite partnership, conflict management, and human rights will be addressed by the field of industrial relations in Korea only if this field breaks with its traditional focus on union and union–management relations.
Abstract
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Yuanbin Wang, Robert Blache and Xun Xu
This study aims to review the existing methods for additive manufacturing (AM) process selection and evaluate their suitability for design for additive manufacturing (DfAM). AM…
Abstract
Purpose
This study aims to review the existing methods for additive manufacturing (AM) process selection and evaluate their suitability for design for additive manufacturing (DfAM). AM has experienced a rapid development in recent years. New technologies, machines and service bureaus are being brought into the market at an exciting rate. While user’s choices are in abundance, finding the right choice can be a non-trivial task.
Design/methodology/approach
AM process selection methods are reviewed based on decision theory. The authors also examine how the user’s preferences and AM process performances are considered and approximated into mathematical models. The pros and cons and the limitations of these methods are discussed, and a new approach has been proposed to support the iterating process of DfAM.
Findings
All current studies follow a sequential decision process and focus on an “a priori” articulation of preferences approach. This kind of method has limitations for the user in the early design stage to implement the DfAM process. An “a posteriori” articulation of preferences approach is proposed to support DfAM and an iterative design process.
Originality/value
This paper reviews AM process selection methods in a new perspective. The users need to be aware of the underlying assumptions in these methods. The limitations of these methods for DfAM are discussed, and a new approach for AM process selection is proposed.
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Rita Ambarwati and Dewi Komala Sari
This study aims to determine the effect of Islamic branding, experiential marketing and word of mouth on college decisions and to find marketing strategies through strengthening…
Abstract
Purpose
This study aims to determine the effect of Islamic branding, experiential marketing and word of mouth on college decisions and to find marketing strategies through strengthening Islamic branding based on experiential marketing to increase the number of students at Muhammadiyah-Aisyiyah Higher Education.
Design/methodology/approach
This study used a quantitative method, with data collection carried out using a survey method by giving questionnaires to respondents. The respondents' criteria are active students, at least in semester three, who have studied at Muhammadiyah-Aisyiyah Higher Education in Indonesia, using a sampling technique with accidental sampling. Data analysis used Partial Least Square - Structural Equation Modeling to determine the estimated results or model predictions.
Findings
The results showed a significant direct effect of experiential marketing, Islamic branding and word of mouth on college decisions. There is an indirect effect between experiential marketing and Islamic branding on college decisions through word of mouth, but the word-of-mouth variable could not mediate the relationship between experiential marketing and Islamic branding on college decisions perfectly.
Research limitations/implications
The limitation of the results of the study is that it uses respondents who are and have participated in learning activities on the Muhammadiyah-Aisyiyah Higher Education, where the Muhammadiyah-Aisyiyah Higher Education has added value compared to other private campuses. The added value on the Muhammadiyah-Aisyiyah Higher Education is the overall learning activity based on Kemuhammadiyahan Islam in Indonesia. Islam Kemuhammadiyahan is the identity of the Islamic branding strategy on the Muhammadiyah-Aisyiyah Higher Education, which is only owned by the Muhammadiyah-Aisyiyah Higher Education.
Practical implications
This study recommends marketing strategies through strengthening Islamic branding based on experiential marketing to increase the number of students at Muhammadiyah-Aisyiyah Higher Education.
Originality/value
The novelty of this research is the addition of experiential marketing and Islamic branding variable measurements on word of mouth and college decisions, especially prospective students to study at Islamic Higher Education in Indonesia.