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URGENT: Acceptable Issuer Market Actions Guidelines Needed singapore
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Author Topic: URGENT: Acceptable Issuer Market Actions Guidelines Needed  (Read 1113 times)

jl777

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We need to establish acceptable AE issuer behavior guidelines. I know it isnt hard to create puppet accounts to bypass any guidelines, but at least we can define what is acceptable and what is not. Then issuers can state whether they will comply with the guidelines and this can be recorded by the rating agencies. We can also have violations reported or even automatically tracked.

For all the decentralization extremists, please note that this is totally voluntary and the usage of this information is also totally voluntary so I believe it should be something that I am allowed to do!

My concern is with market manipulation to create the illusion of demand (or offers) to push the price artificially. I know this is standard behavior in crypto, forex and the stock markets, but why cant NXT have the most honest market?

I propose the following:

1. The issuer will not make trades with accounts it controls that creates price movements or trade volumes that are false.

2. It is acceptable for the issuer (directly or indirectly) to create a market in its own issue as this creates liquidity for asset holders. The vast majority of bids should be below the lowest ask and the vast majority of asks should be above the highest bid. (100% conformance to this cant be assured as there is no control of incoming quotes)

3. Publicly announced trades will have no restrictions, but have to be done using the issuing account. This allows for buybacks and secondary market offerings and even market interventions. The key is that it is open and announced.

I, of course, promise that all my assets will follow the above and I hope the other asset issuers will also make the same pledge.

James

P.S. Any improvements to the language or additional suggestions are welcome, this is just a first draft, once we have consensus among issuers I hope that daedelus will include this info in his wonderful list
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bob_ggg

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Re: URGENT: Acceptable Issuer Market Actions Guidelines Needed
« Reply #1 on: May 17, 2014, 09:40:00 pm »

Several ideas can be copied from the practice of deals in the VC space. Existing proposals listed in the AE are very close to seed funding given their early stage. For this reason, an information package that includes:
  • an executive summary of the business plan with a concise description of the business, competition and SWOT analysis
  • detailed profile of the proposing team, its previous accomplishments and weaknesses, with a recruiting strategy to cover these weaknesses
  • Use of funds: how much capital is needed to achieve the business goal and how it will be spent; how the use of funds will be monitored;
  • Cash flow analysis and timing of the needed funds; 
  • Milestones and associated fund requirements; we are considering the "quotations" on the AE as if they were IPO; it is more realistic to consider them as seed rounds of financing with the money given to the business according to the milestones set in the business plan;
  • availability of a market maker; while not essential, it is useful to know that there are investors who are committing funds to keep the market reasonably liquid 
  • support by a sponsor; another typical demonstration that the business has been able to gather support by experienced business people
All this information could be summarized in a website created by the team proposing the idea, with a support by the external advisers. IMO, this information would be a useful starting point that allows to carry out some initial research. Of course, it should be provided on a voluntary basis, but a business not following a normal disclosure of information should raise several questions.
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allwelder

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Re: URGENT: Acceptable Issuer Market Actions Guidelines Needed
« Reply #2 on: May 18, 2014, 02:29:49 pm »

I can help Chinese translation if needed.
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nxtgt

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Re: URGENT: Acceptable Issuer Market Actions Guidelines Needed
« Reply #3 on: May 19, 2014, 04:29:26 am »

Several ideas can be copied from the practice of deals in the VC space. Existing proposals listed in the AE are very close to seed funding given their early stage. For this reason, an information package that includes:
  • an executive summary of the business plan with a concise description of the business, competition and SWOT analysis
  • detailed profile of the proposing team, its previous accomplishments and weaknesses, with a recruiting strategy to cover these weaknesses
  • Use of funds: how much capital is needed to achieve the business goal and how it will be spent; how the use of funds will be monitored;
  • Cash flow analysis and timing of the needed funds; 
  • Milestones and associated fund requirements; we are considering the "quotations" on the AE as if they were IPO; it is more realistic to consider them as seed rounds of financing with the money given to the business according to the milestones set in the business plan;
  • availability of a market maker; while not essential, it is useful to know that there are investors who are committing funds to keep the market reasonably liquid 
  • support by a sponsor; another typical demonstration that the business has been able to gather support by experienced business people
All this information could be summarized in a website created by the team proposing the idea, with a support by the external advisers. IMO, this information would be a useful starting point that allows to carry out some initial research. Of course, it should be provided on a voluntary basis, but a business not following a normal disclosure of information should raise several questions.

This stuff should be bare minimum
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