Following the Paper Trail

By Marcela on May 8th, 2009 stock certificates No Comments

- – - -

* A Quick Note On Blog Comments

Like Bob, you may have noticed a delay between posting comments and seeing them live. This gives the OneShare gnomes a chance to screen for spam!  Also, if you don’t have a website, feel free to leave that section of the form blank — it’s not needed.

We’re still ironing out the details, so let us know if you have any thoughts!

- – - -

The U.S. is no trail blazer on the path to dematerialization. In one of our recent comments, we mentioned Japan’s paperless transition in January of 2009. But Japan’s hardly the exception; in fact, if anything, it’s the U.S. that’s a step behind. Here are some of the countries no longer issuing stock certificates:

Argentina             
Australia
China
Denmark
Finland
France
Greece
Hungary
Iceland
India
Jordan
Malaysia
Mexico
New Zealand           
Norway
Pakistan
Poland
Singapore
Sri Lanka
Slovenia
Sweden
Switzerland
South Africa
Ukraine


Brazil and Ireland are not far behind. Japan
’s parliamentary body hopes this new legislation will help reduce the risk and cost associated with paper certificates as well as streamline the trading process. Unfortunately, the trend doesn’t always jive with those who want something tangible to represent their connection with a particular company.

For more information on the dematerialization movement, check out the DTCC corporate website. The DTCC, or Depository Trust & Clearing Corporation, oversees process improvements in capital markets.

Tags: , , , , , ,

Leave a Reply