STOCK EXCHANGE RULES.

Tuapeka Times, Volume XXXIV, Issue 4831, 14 September 1901, Page 2

STOCK EXCHANGE RULES.

At Thursday morning's sitting of the Dans- , din Stock Exchange (says the " Otago Daily' Time 3") a discussion took place on tbe question of tbe eupply of buyers' names. Accordiog to the rule previously in existence, three days we understand, were allowed to a buying bioker in which to supply a buyer's name, after which time the selling broker bad the right of inserting the baying broker's ' own oame *" the transf «?x-s if » ba*r~«r*s DSkOSO Wetfe toot forlbcoming, Eveu three dBJS ~" were not enough for some brokers, if report speak? truly. This bas been altered, as tbe new rulo provides that the buying broker must supply the buyer's name by 4 p.m. on the day following the day of sale. If this rule be enforced, tt should go a long way towards facilitating tbe business of the Stook Exchange and plaoing it on a sounder basis. It should also operate effectually against the •• jobb-r " who buys to-day and. sell 3 to-morrow for a turnover, as insistences on a buyer's name within the prescribed time will compel him, if he has no clieot, to go on the register and pay rtamp duty and transfer fees —a proceeding to which the " jobber " has a strong antipathy. Beeid s putting a check on the " spec." boyer, i* should tend to check to some extent overBoiling, which is perhaps a, greater eyil than overbuying The over-seller sees a falling market and sells shares he has not on hand, , in the exp^tatioa of baying them to supply when the price has fallen considerably. Tbis practice operates prejudicially io two ways : it prevents tha genuine seller obtaining a fair price, and depreciates stock to a price often far below its proper value. Now that buyera' names must be given . promptly, baying brokers will have le3s compunction in enfo'cing the rule regirdiog delivery in 10 days. Were the Stock Exchange to go a step further aad make and enforce a rule .to the effect that where the shares belonged to a client in Dunedin delivery should bo given within three days, allowing the U3ual 10 days for country deliveries, we believe that overselling could be reduced to a minimum. We > feel sure that such a rule would be welcomed by those who do a legitimate business.