DIESEQ - Distributed Intergalactic Empyrean Stock Exchange and Quotations
1) Enlisting and General Conditions
The participating corporations enlist by announcing how many bonds they will release, the initial price and the General Conditions of the bonds. At the beginning, the enlisted corporation owns all their bonds.
Examples of General Conditions:
-The bonds can only be traded to and between Amarr buyers.
-The list of the bond owners is public.
-The bonds can be traded only in multiples of twenty.
-The bonds entitle the owner to receive dividends every two months.
The General Conditions cannot be changed without the consent of the owners.
One corporation can have several types of bonds each with a unique name and with same or different General Conditions.
2) Book Value, Stock Exchange Reports and Exchange Coordinator
Each enlisted corporation is obliged to buy back the bonds it has released for the latest book value.
The book value is managed by the corporation itself but any changes become official only after the latest stock exchange report has been released.
The stock exchange report is released at regular intervals (fortnightly?) by a central exchange coordinator who aggregates and distributes the data submitted by brokers.
3) Brokers and record keeping
An enlisted corporation names a broker acting on its behalf (can be a member or a trusted non-member).
The brokers identity is public and is submitted to the exchange coordinator at the time of enlisting.
When a corporation changes its broker, the new name is submitted to a central exchange coordinator. The change becomes valid only after the next stock exchange report has been published.
The broker maintains a list of the current owners, how many bonds each owner is willing to sell and at what price.
The broker is not obliged to make the list of bond owners public, unless a General Condition dictates otherwise.
The broker manages the open stock exchange (see below) on behalf of the enlisted corporation, and is the receiver of the restricted stock exchange data (see 4a and 4b).
The broker sends out the volume of sales, the book value and the highest and lowest sales prices to a central coordinator who aggregates and distributes the data in his stock exchange report (eve mail?).
Example of an exchange report:
Weeks 10-11,YC115
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Corporation / B-Value / High / Low / Vol / Broker
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Veldspar Diggers Inc. / 20 mil / 20 mil / 15 mil / 2 / gunhero14
Amarr Tech Consulting / 1000 / 130 / 1 / 12000 / Tevis Korshapur
4) Forms of Exchange
4a) Open exchange
Open exchange is managed by the broker, and takes place anonymously unless the General Conditions dictate otherwise. A single buyer can receive bonds from multiple sellers without knowing it.
A buyer sends a request to the broker of the corporation whose bonds they wish to buy. The request is made for a certain number, or a certain value of bonds.
The broker responds with the cheapest total price the deal can be arranged, or with the number of bonds the investment is enough to buy.
If the General Conditions of the trade are met, and the buyer accepts the deal, the ISK is transmitted through the broker who records the deal.
4b) Restricted exchange
If a bond owner finds a willing buyer, they can negotiate the trade and submit it to the broker managing the bonds in question. If the General Conditions of the trade are met, the broker must accept and record the trade.
5) Owner rights
The owners have the right to designate themselves as stakeholders. The corporate leadership is obligated to hear their opinion by eve mail. The General Conditions of the bonds can define more rights.
6) Misconduct
If a broker accepts trades which are against the General Conditions accompanying the bonds, or reports false data to the exchange coordinator, the matter should be resolved between the corporation whose bonds have been traded, and the broker. The corporation is responsible for the damages to the owners.
If the exchange coordinator commits insider trading, falsifies information or is found guilty of some other form of misconduct, the brokers and their employers choose a new coordinator.
If a corporation fails to buy back the bonds at book value it has quoted, it will be considered to have defaulted and can no longer participate in the stock exchange.