Euronext

ALSO NOTED: What ever happened to congressmen Sarbanes and Oxley?; Novel way of reporting Sarbox costs;

Tue, 07 Aug 2007 06:59:58 -0400

> What ever happened to congressmen Sarbanes and Oxley? Article | Another Happy 5th Anniversary article.

> Here's an interesting way to grapple with Sarbanes-Oxley in your earnings report. Provide data for EBITDA including Sarbox costs and excluding Sarbox costs, as Spark Networks has done. Release

> PCAOB CIO to step down. Article

> SEC announces members of the new Advisory Committee on Improvements to Financial Reporting. Release

> More than 60 CFOs convicted in the past year. Article

> Another Fair Fund distribution. This one to Qwest shareholders. Article

> Another foreign company will delist from the NYSE. This one was an early complier with Sarbanes-Oxley. The fact is that ADR volume is very low. And the NYSE and Euronext are now one. Release

> Survey: Most investors happy with Sarbox. Article

> Should the CIO be a technologist or a business person? Or both? Article

> Japanese version of Sarbanes-Oxley to be enacted in April. Article | And that has at least one vendor heading for Tokyo. Article

> New credit card rules get mixed reviews. Article

And finally ... What your IT department is afraid to tell you. Article

NYSE-Euronext: More places to escape Sarbox?

Mon, 09 Apr 2007 20:01:39 -0400

One of the unintended consequences of Sarbanes-Oxley has been the unexpected rise of a truly global stock exchange company. The best example of this so far is the New York Stock Exchange. The new NYSE-Euronext combination has begun operation, and the NYSE brass doesn't shy from the fact that it wants to help companies that don't want to deal with Sarbox. It would like to provide even more escape venues. Most people assume that now that the U.S.-Europe link is up, the focus will shift to Asia, specifically Japan and even China. There is talk that Sarbox-like regulations will somehow follow the NYSE into Europe via new accounting rules. If so, an Asian venue may seem more to people's liking. Eventually this movement could sputter, as more companies resign themselves to more rigorous laws in most countries. But even as we discuss, more foreign companies are listing in the U.S.

For more:
- here's an International Herald Tribune article

ALSO NOTED: Exchange war update; PCAOB meeting set;

Mon, 27 Nov 2006 19:01:38 -0500

> We've discussed a lot here that the NYSE and Nasdaq are pushing abroad in part to capture business that might find non-U.S. exchanges a good idea, given the Sarbox costs and all. The latest is that the NYSE has set its sights on Asia, where some of the biggest IPOs ever have debuted this year. Article

> Shareholders reject the proposed NYSE-Euronext deal. Article

> Here's an update on the going-private-to-escape-Sarbox trend.

> I've said it before: Listing on AIM instead of Nasdaq to escape Sarbox is not an easy decision, especially when factoring in the likelihood that liquidity on AIM will prove disappointing. Article

> The mayor of London is bent on keeping Nasdaq away from the LSE. Article

> The New York City tabloids have been happy to push the notion that Manhattan is in danger of being eclipsed by London and other cities. Sarbox is of course the number one reason. Here's a column by the publisher of the New York Daily News. Article

> Compliance training seems like more of priority for firms. We'll start seeing more training solutions like this one: An Web-based system. Article

> Section 109(b) of Sarbox requires the PCAOB to set a budget for each year at least a month before the start prior to the commencement of that fiscal year, which is the calendar year. This year's meeting will be Nov. 30. Brief

> Sarbox is said to be one reason for a rather pressing shortage of tax accountants. Which has pushed many accounting firms to outsource standard tax return preparation to India. Press release

> A new trade group created by the merger of two previous trade groups looms as an instant power. It has taken an interest in Sarbox. Article

> Are more CFO-level executives taking the fall for options improprieties? Maybe. Here's the latest example. All in all, it seems that top lawyers are more likely to take the fall for options shenanigans. Article

And Finally... The lighter side of the FASB. Article

ALSO NOTED: Six Deloitte member firms create Deloitte Caribbean/Bermuda; NYSE steps up campaign for Euronext;

Mon, 30 Oct 2006 19:01:38 -0500

> The city of London has been on a fairly extensive marketing campaign to boost its profile as the world's financial center. The conventional wisdom is that Sarbox has made the London markets that much more attractive. Well, the issues are a bit more complex. But the New York versus London story is an interesting one. Article

> Do not shed tears for top Wall Street firms. They are making a ton of money from IPOs no matter where the shares are listed. Article

> Good controller practices profiled. New book offers advice on controls for accounts payables. Release

> New directive in Europe akin to Big Bang, Sarbox and Y2K rolled into one. Whew! Article

> Even without Sarbox-like rules, people in London are complaining. And some say they will leave London because of high taxes. Article

> Greatest threat to databases may be from internal sources. Article

> The NYSE has stepped up its campaign for Euronext. The latest is that NYSE CEO John Thain indicated he is open to more Europeans on the board. That would appease many and likely instill a sense that they can prevent Sarbox-like regulations from taking hold. Article

> Six Deloitte member firms in the Islands will join together to create Deloitte Caribbean/Bermuda. Article

> Recruiting and personnel firms have definitely latched onto Sarbox as something that can drive more business. Article

And Finally ... Do you hate your job? Join the crowd. Article

ALSO NOTED: Who's to blame for options snafus?; Super lawyer on the hot seat

Mon, 25 Sep 2006 20:01:38 -0400

> Edgar, we hardly knew ya. Looks like the SEC is moving toward creating an electronic filing system that will shove Edgar out the door. It has awarded three contracts to build such a system. The move makes a whole lot of sense. Article

> When it comes to compliance, financial services firms have an unusually broad set of rules to grapple with: Sarbox, Basel II, various exchange SROs and overseas regulations. The European Markets in Financial Instruments Directive looms. Article

> Who's to blame for options snafus? At Broadcom, CFO William Ruehle has stepped down amid the probe, a move said to be in the best interest of all parties. Article | At Monster Worldwide, general counsel Myron Olesnyckyj has been suspended, pending the results of a company inquiry. Article

> People have recently noted the ostensible ascendancy of the London Stock Exchange's AIM, and there has been a lot of talk of the resurgence of the city of London as a financial super center. New York will not easily cede ground. City leaders see Sarbox as a huge threat to its status. Article

> The options backdating scandals have one super-lawyer in Silicon Valley on the hot seat. Article

> Another Sarbox fraud case settlement: Doral Financial, onetime Puerto Rican mortgage firm and NYSE-listee, will pay a $25 million civil penalty. Article

> The recent Spencer Stuart Board Index survey makes clear that boards are becoming more independent and more diverse. One wrinkle in the wide-ranging survey is that audit committee members seem to be the hardest working directors. More than 35 percent of S&P 500 audit committees meet more than 11 times a year vs. just 1 percent in 2001. Survey

> The NYSE and Euronext continue to press the case that Sarbox-like rules will not be imposed on Euronext listees. Article | Are European officials overreacting? Article | Despite the controversy, Euronext officials seem committed to merger. Article

> The Sarbox "roadshow" may be coming to a city near you. Article

And finally ... Ethical behavior as a competitive advantage. Article

PCAOB inspects E&Y's London offices

Mon, 18 Sep 2006 20:01:39 -0400

The PCAOB reportedly began inspections of Ernst & Young's London offices last month. Inspectors spent two weeks in the offices and have scheduled another visit for this month. Other London branches of U.S. accounting firms will also be or have been inspected. The ostensible reason is the little-known provision of Sarbanes-Oxley that requires the PCAOB to provide annual reports detailing operations of foreign audit firms with more than 100 clients listed in the U.S. This has not gone over well in London where there is considerable fear of what has been called "regulatory creep." The fear that Sarbanes-Oxley inspired rules will somehow migrate to Europe has yet to die. In fact, the United Kingdom's economic secretary to the Treasury has proposed a law that would give the Financial Service Authority, the key financial regulator, the power to reject new rules imposed on U.K. exchanges. This comes amid the Nasdaq's move to possibly control the London Stock Exchange and follows news that Euronext would create a "Dutch shield" to assuage fears that it would embrace Sarbox.

For more on the proposed law:
- Here's a BBC article
For more on the inspections:
- Here's a Financial Times article via msnbc.com

Euronext, NYSE may adopt a Sarbox shield

Mon, 31 Jul 2006 20:01:39 -0400

Just how much do foreign companies fear the potential imposition of Sarbanes-Oxley? Quite a bit. The issue continues to percolate as it appears that the Euronext-NYSE deals is on track. European reports have suggested that the advisors to both sides are working on a clause that would void the deal if any attempt to impose Sarbox were made. Sort of a regulatory poison pill. Of course, the SEC has already ruled out exporting the law. But you can't blame foreign companies from wanting additional assurances.

> Here's an update from The Times.
> How some foreign listees are grappling with Sarbox. Article

Avoiding Sarbox: the foreign IPO solution

Mon, 05 Jun 2006 20:01:34 -0400

You're no doubt aware that globalization fever has gripped the New York Stock Exchange and the Nasdaq, which have well-reported designs on Euronext and the London Stock Exchange, respectively. Supposing these these deals go through, would all this amount to an opportunity for companies to avoid SOX by going public in Europe? It makes sense, especially for small- and medium-sized companies, who likely will not be getting a SOX break after all. You could also imagine private equity firms taking even large companies private, fixing them up and taking them public again in Europe or even Asia. A recent survey by Pricewaterhouse-Coopers found that 67 percent of executives recently listed Sarbanes-Oxley as a barrier to an IPO. Private equity firms, not to mention their investment bankers, are more comfortable than ever on foreign terrain. At some point, you might be asked to at least ponder the economics of such a move.

> Here's an interesting article from Forbes.