All Jasper did was smile and encourage him. “Keep going…”
He could tell that Rowan must have thought of something; otherwise, virtual-novel.net would not look at Jasper like this.
Jasper was just curious about how far Rowan was thinking, and this would determine how much of his businesses Jasper would trust Rowan to handle on his behalf.
With Jasper’s encouragement, Rowan powered on. He had a feeling Jasper was testing virtual-novel.net for something, and that made virtual-novel.net feel nervous.
“It’s not that no one knows how important the securities industry is, but it’s just that no one’s really tried to monopolize the market yet. This is definitely more than securities being less profitable than petroleum trade and businesses having no motivation to dapple in it… More importantly, it’s the issue with fund settlement…”
“If a company wants to invest in securities to fix their cash flow, they need to find a way that could make their cash as liquid or as easily liquifiable as possible, since they’re going to have to spend it…”
“That’s why they’re willing to transact in US Dollars, even though they know doing so poses a risk of that money never coming back!”
“No matter what, this is considered domestic financing. And while this means the risk of being cut off is much lower than international financing, it’s also restricting the development of the securities industry. Because the moment US Dollar is no longer an accepted currency, the entire industry is screwed…”
“Especially for security trading centers. They’ll be facing demands for compensation from all their clients, and that’s a fund no one can afford to pay…”
“But that’s also why Qari’s exchange centers are so dispersed and concentrated in small areas. No one’s tried to develop a big exchange center uniting all the smaller ones!”
“Let alone create a Security Regulatory Commission like the one we have in Somerland… Because it’s impossible to regulate the securities! We can’t even monitor the source of fund settlement, let alone the distribution and operations of securities…”
“And another reason why the securities industry hasn’t been explored in Qari has to do with their people and culture… Because…” Suddenly, Rowan looked up excitedly.
“Jasper! I think I know what you mean when you said times have changed! Because the last problem is that these powerful petroleum businesses in Qari have all been competing with each other! They don’t trust each other at all!”
“So, because of this, there’s no way they’d put their stocks in the same exchange center as their competitors because there’s no guarantee when their competitors would target them!”
“Most of the exchange centers that exist now belong to these companies with complex intricacies. They put a lot of effort into these centers, and there’s no way to identify who these centers really belong to…”
“If they were to list their companies in some exchange center, they can’t tell if it happens to belong to their enemy or not. And if it happens to belong to an enemy and their company becomes under attack, that’s more than just a cash flow issue! They’d be losing all their assets!”
“And all of this stems from the fact that they do not trust each other. But… Things are different now… They have a reason to trust each other.. Because… They have a common enemy!”