Auroran Stock Exchange
The Auroran Stock Exchange (Ethalrian: Auroranische Börse, Oan: Ko te Utu Hokohoko o te Orora, Salovian: ავრორას საფონდო ბირჟა) is a securities exchange located in Sani Bursil, Great Morstaybishlia. It is by far the largest securities exchange on Aurora and arguably the largest on Urth by the number of companies and by total market capitalisation. The underlying legal tender used to mediate transactions is the Kirib. Abbreviated as the ASE, it is owned by the Auroran Stock Exchange Company which is a publicly traded registered company in Great Morstaybishlia.
The ASE originated as the Bursil Merchant's Market in the 14th century as an invite-only market for members of the Royal Bursil Merchant's Guild. It evolved to be the Royal Bursil Paper's Market in the late 17th century when it was granted a royal charter. It was reestablished as one of the oldest modern stock exchanges in the world under the name of the Sani Bursil Stock Exchange in the 19th century. Due to its influence and preeminence, it was renamed as the Auroran Stock Exchange. Telephonic trading was introduced in the 20th century due to the advent telephones which allowed investors to make trades by calling in. This was further advanced by the invention and commercialisation of computers which allowed for electronic trading. Today, it is helmed by one of the former Prime Ministers of Great Morstaybishlia, Walter Johannes since 2020 following his defeat in the 2019 Great Morstaybishlian General Elections by Franklin Barvata and MBE Labour.
History
In the 14th century, the Bursil Merchant's Guild was formed during the last years of the reign of Lambertus I by owners of ships then known as merchants. These merchants were responsible for sending ships to foreign nations to trade in various goods. Sometimes they engaged in piracy and plundering foreign lands, but because they paid their taxes and fees to His Majesty’s Treasury, the Crown did not interfere in their business. This organisation was established to coordinate the activities of merchants in the Greater Burisaye-Celidizia area. The sponsors of the expeditions, crews and ships of these merchants were often wealthy land-owning aristocrats and courtiers at the Sani Bursil Royal Palace. There was growing resentment for this class, which seemed to profit at the expense of the rest of society. Thus to legitimise their business, the aristocrats solicited Lambertus II to grant them a royal charter, which he did, allowing them to change their name to the Royal Bursil Merchant's Guild in the late 1300s.
The Royal Bursil Merchant's Guild controlled a vast network of trade routes that became increasingly complex and brought together many merchants. Thus, they created the Royal Bursil Merchant's Market. This market was by invite only, and these merchants traded in contracts. These were basically promises by one merchant to undertake some task, produce some good or promise to pay another for such goods and services rendered. Then they could further buy and sell these "promises" from one another. These were the foundations of modern financial instruments such as futures, options and forwards, and this created the foundations for the bond market.
This guild established the Royal Bursil Merchant Bank in 14th century during the reign of Lambertus II to finance, underwrite and facilitate these trades. The Royal Bursil Merchant Bank held gold for the participating merchants who in turn used certificates and tokens to make agreements and trades. The gold was stored safely at Waldmouth Castle, property of the 6th Earl of Waldmouth, Rydion Kirdin. The Royal Bursil Merchant Bank began extending its depository and financing services to the public. The Royal Bursil Merchant Bank experienced three bank runs which His Majesty’s Treasury often bailed them from (situations were the bank did not have sufficient gold in its vault to pay depositors and chequors for all the certificates and tokens they had).
Thus, this eventually forced the Treasury under King Gustav I to regulate the bank by demanding fractional reserve banking. When Queen Rosamund I began curtailing the power of the merchant banks and making the Kirib the official currency, the value of the Kirib was prone to fluctuations which the merchants felt that they could exploit. Thus, Royal Bursil Merchant Market began to buy and sell Kiribs using "promissory contracts" whereby one person would agree to buy or sell Kirib for gold at a future date giving rise to the seeds for ideas about notional trading and long and short positions in finance.
The Guilds gradually became replaced by companies as the Crown granted sophisticated charters that birthed modern principles of company law. As such a stake in the ownership of the profits of such entities could be bought and sold through the trade of certificates of ownership known as corporate papers. This led to the market being renamed the "Royal Bursil Paper's Market". This was obviously not as sophisticated as modern notions of equity but it did begin to add complexity to companies that could be exploited for profit. The idea of these certificates or corporate papers became increasingly known as stock as purchasers were given right to the value of the assets after debts were paid and not merely profits.
As such the Paper's Market became the Sani Bursil Stock Exchange. Due to a refusal by Gustav II to grant a Royal Charter in light of a dispute over payments to the Treasury, the market did not receive the epithet "Royal". Equities, bonds, and currency exchange had become well-known concepts among the wealthy and educated. When the Kirib Monetary Union was founded due to treaties signed by Florence II, the exchanged changed its name to the Auroran Stock Exchange as it allowed companies outside of Great Morstaybishlia to sell their stock in its Halls. Despite a willingness by the monarch to grant a royal charter, the name was not altered to have the "Royal" epithet.
The ASE continued as a stock exchange. When the telegram was invented trading could be done from farther afield. When telephone was invented, people could call in to make trades while there were people on the floor to facilitate these trades. These became known as brokers. As other countries started their own exchanges, brokers made themselves and their clients profits due to the variance in currencies etc., and the modern industry of arbitrages developed. The idea of putting companies on a list based on various factors emerged and the ASE became much more strict with the companies they listed. This held to develop the idea of Standard Accounting and Reporting and gave rise to modern indexes and benchmarks.
The invention of the computer allowed for modern trading to emerge whereby investors could put in orders and the computer would make trades based on the conditions in the order on behalf of the trader. The invention of the Internet significantly expanded the ability to distribute information about the trades and required more robust ethical limitations. The establishment of the Auroran Continental Assembly and the regulatory environment it created helped to propagate the ASE's regulatory influence. The importance of indexes rose as investors were looking to pool their funds in diverse and trustworthy assets. This led to consolidation and maturation of ideas around portfolio management. The use of probability theory and statistical analysis to exploit differences in the fundamental and perceived values of traded assets gave rise to technical and fundamental analysis-driven aggressive investment practices. In the modern day, these practices are becoming increasingly uncommon as fundamental and market values coalesce due to greater and faster access to information etc.
Regulatory influence
Technically the ASE is not a regulatory agency however it is so influential as to be a de facto regulatory agency. This is because it only allows companies to be listed in its exchange if they meet the criteria it sets out. This includes having timeous regular financial statements that meet Auroran Accounting Standards, filing a prospectus containing information about the company, having an investment grade rating from Preston & Cole and meeting certain ethical and legal requirements for how the company is managed.
The scope of the rules that the ASE creates for the companies which wish to be registered on it is so vast and covers so many industries that it is a de facto source of policy for many Auroran nations and United Nations of the Auroran Continent more broadly such that some part of Auroran law focusing on market regulation draw inspiration from its guidelines and manuals. The rules are drawn up by various departments and Committees often consulting with highly praised academics, politicians, businesses and accounting firms such as Ita Marama.
Classification System
The ASE maintains its own classification system known as the ASE Equity Classification System (ECS). The ECS can be licensed to asset management firms, fund administrators and performance measurement solutions providers. The purpose of this system is to enable like for like comparisons between similar companies and to differentiate companies based on their predominant source of income and operations.
The ECS has 2 types of classifiers: the Geographic Classifier and the Sector Classifier. Each classifier has levels of abstraction which narrower scope as the level gets lower. This is as follows:
- ECS Sector Classifier. Level I has 8 economic sectors. Level II has 24 subsectors which divided the sectors into 1 or more subsectors. Level III has 72 industries which divide subsectors into 1 or more industries. This is most useful for classifying equities.
- ECS Geographic Classifier. Level I divides the world into various regions. Level II divides the regions into countries. Level 3 divides countries into high level subdivisions. This is usually applicable for large countries or medium-sized countries with highly decentralised systems of government. This is most useful for classifying bonds especially sovereign bonds.
The sector classifications are as follows
| Name | Description | Abbreviation |
|---|---|---|
| Finance | Insurance, banking, asset management | FNC |
| Health | Pharmacy, pharmaceuticals, hospitals, medical services | HLT |
| Basic Materials | Mineral, forestry, | BMT |
| Consumer Discretionary | Anything that a consumer spends money on but does not need like luxury products, media, gaming, tourism, appliances, furniture | CDS |
| Consumer Staples | Anything a consumer needs to live (comfortably) such as food, hygiene | CST |
| Logistics | Shipping, trucking, warehouses, ports, airports, railways, retail | LGS |
| Utilities | Electricity, gas and water, waste and sanitation | UTL |
| Real Estate | Construction, realty, hotels | RES |
| Technology | Information and computing technology, scientific instruments and research | TCH |
| Telecommunications | Mobile, satellite, cable, broadband, Internet, | TLC |
| Industrials | Manufacturing, construction, chemicals | IND |
| Energy | Fossil fuels, renewable energy | ENG |
The Auroran All Share Index is an index of the largest publicly traded companies in Aurora. The Index represent a portfolio of equities in these companies. It is often used as the main benchmark for passive investment portfolios by private asset and investment management firms. The companies in this list is as follows:
| Name | Ticker | Sector | Country of origin | Share price (KRB) | Market capitalisation (KRB) |
|---|---|---|---|---|---|
| Café Pay | CFP | Technology | The Oan Isles | ||
| Cafe Net | CFN | Technology | The Oan Isles | ||
| Oan Airways | OAA | Logistics | The Oan Isles | ||
| Metatron Corporation | MTT | Technology | The Oan Isles | ||
| Standard National Bank | SNB | Finance | The Oan Isles | ||
| Oan Arms | OAR | Industrials | The Oan Isles | ||
| Blue Ocean Cruises | BLO | Consumer Discretionary | Blueacia | ||
| Royal Blue Air | RBA | Logistics | Blueacia | ||
| Audelli Group | ADL | Industrials | North Ethalria | ||
| Sentinel Arms | SNT | Industrials | Axdel | ||
| Borealis Energy | BRE | Utility | Axdel | ||
| Axis Chemicals | AXC | Industrials | Axdel | ||
| Triad | TRD | Health | Axdel | ||
| Highland Breweries | HBR | Consumer Discretionary | Axdel | ||
| Southern Lights Gaming | SLG | Consumer Discretionary | Axdel | ||
| Posol Industries | PSL | Logistics | Biramura | ||
| Royal Caven Petroleum | RYL | Energy | TBA | ||
| Serenitech | SEN | Logistics | Tivot | 103.66 | 522,033,151,332.88 |
| F&T Holdings Group | FNT | Finance | Tivot | 85.89 | 401,256,212,848.86 |
| Vol-Mart | VMRT | Logistics | Tivot | 83,759.61 | 194,841,223,994.00 |
| West Tarov Beef and Pork | TBP | Consumer Staples | Tivot | 11.00 | 112,564,818,355.00 |
| Vutsov Entertainment, Inc. | VUT | Consumer Discretionary | Tivot | ||
| YurovAir | YUR | Logistics | Tivot | ||
| Cava Aura Worldwide | CAG | Real Estate | Great Morstaybishlia | 0.00 | 250,938,947,368.42 |
| Damehowe | DMH | Technology | Great Morstaybishlia | ||
| Dyche | DYH | Logistics | Great Morstaybishlia | 250.10 | 24,494,000,000.00 |
| Embask | EMK | Energy | Great Morstaybishlia | 7,914.82 | 702,520,876,503.11 |
| EN4U | ENU | Utility | Great Morstaybishlia | 1.00 | 1.00 |
| Felly's | FLL | Consumer Staples | Great Morstaybishlia | ||
| Ferrus Industries | FEIN | Industrials | Great Morstaybishlia | 1,267.49 | 105,265,918,673.58 |
| Geek Milly Energy | GME | Utility | Great Morstaybishlia | 1,534.67 | 39,225,403,211.00 |
| Golding Smithant | GSC | Finance | Great Morstaybishlia | 1,389.63 | 215,233,320,050.00 |
| Jubrayn Airlines | JBNA | Logistics | Great Morstaybishlia | 1.00 | 1.00 |
| Kaylo Construction | KYCN | Industrials | Great Morstaybishlia | 86.32 | 53,367,000,000.00 |
| Kevy's | Consumer Staples | Great Morstaybishlia | 0.00 | ||
| Lily Care | LILY | Consumer Staples | Great Morstaybishlia | 243.20 | 136,358,000,000.00 |
| Mordejet | MRDE | Logistics | Great Morstaybishlia | 1.00 | 1.00 |
| Morstaybishlian Air | MBA | Logistics | Great Morstaybishlia | 0.40 | 1.00 |
| Morst Farming Nexus | MFN | Technology | Great Morstaybishlia | ||
| Ospira | MTC | Industrials | Great Morstaybishlia | 72.67 | 66,838,000,000.00 |
| Peepl | PPL | Technology | Great Morstaybishlia | ||
| Primrose | PRS | Technology | Great Morstaybishlia | 17,502.00 | 941,836,701,650.18 |
| Royal Redrugus | RR | Industrials | Great Morstaybishlia | 193,480,042.45 | 19,348,004,245.45 |
| Salifa | SAL | Utility | Great Morstaybishlia | 384.58 | 21,719,043,220.00 |
| Serpia LLC | SER | Basic Materials | Great Morstaybishlia | 241.41 | 54,960,503,560.00 |
| Trech | TREC | Industrials | Great Morstaybishlia | 1.00 | 1.00 |
| Tyda | TYDA | Industrials | Great Morstaybishlia | 88.84 | 183,723,000,000.00 |
| Vendaz | VDZ | Basic Materials | Great Morstaybishlia | 649.22 | 675,406,805,220.00 |
| Vestomira Torrent | WOG | Consumer Discretionary | Great Morstaybishlia | 57.16 | 37,503,201,445.00 |
| Vocher Cada | VCHR | Finance | Great Morstaybishlia | 1,000.00 | 368,500,504,308.10 |
| Zapna | ZAP | Finance | Great Morstaybishlia | 13.66 | 8,501,000,000.00 |
| Nala Sovni Corp. | NALA | Consumer Discretionary | Tuvaltastan | 139.30 | 250,408,000,000.00 |
| Vorolizon | VER | Utility | Tuvaltastan | 9,382.26 | 201,846,330,554.00 |
| Salovian Kostorian Tobacco | SKT | Consumer Discretionary | Tuvaltastan | 38.85 | 89,133,000,000.00 |
| East Auroran News Network | EANN | Consumer Discretionary | Tuvaltastan | 21,752.96 | 73,155,623,115.01 |
| Mergalov | MERG | Consumer Staples | Tuvaltastan | 5.97 | 67,121,668,433.00 |
| Salovi | SLV | Industrials | Tuvaltastan | 47.46 | 65,170,254,668.00 |
| Barnaul Mining Group | BRN | Basic Materials | Tuvaltastan | 3,692.14 | 17,812,036,554.00 |
| Fireleaf Innovations | FIRE | Technology | Emberwood Coast | 695.95 | 191,448,963,000.00 |
| Kotakon Enterprises | KOTA | Industrials | Emberwood Coast | 239.93 | 85,760,000,000.00 |
| Quicksilver Industries | SLVR | Industrials | Emberwood Coast | 1,665.62 | 29,610,000,000.00 |
| Coast Communication and Tech. | CCTT | Telecommunications | Emberwood Coast | 237.85 | 21,475,060,000.00 |
| Southgate Inc. | SGTE | Utility | Emberwood Coast | 988.46 | 19,477,210,000.00 |
| Civet Automotive | CIVA | Industrials | Emberwood Coast | 43.66 | 17,758,884,340.00 |
| Second Cup | SCUP | Consumer Staples | Emberwood Coast | 4.59 | 5,450,000,000.00 |
| Unity Airlines | UNIA | Logistics | Emberwood Coast | 36.30 | 4,281,200,000.00 |
| Mercy Medical Group | MRCY | Health | Emberwood Coast | 84.22 | 2,346,895,500.00 |
| Hundred Acre, Co. | 100A | Consumer Staples | Emberwood Coast | 6.42 | 322,680,100.00 |
The Global All Share Index is a list of all the companies outside Aurora which are traded on the ASE.
| Name | Ticker | Sector | Country of origin | Share price (KRB) | Market capitalization (KRB) |
|---|---|---|---|---|---|
| Buddy | BDY | Technology | Packilvania | ||
| Chatter | CHT | Technology | Packilvania | ||
| Debby | DBB | Technology | Packilvania | ||
| Industrial and Commercial Bank of Packilvania | ICBP | Finance | Packilvania | ||
| Agricultural Bank of Packilvania | ABP | Finance | Packilvania | ||
| Telesat | TLS | Telecommunications | Packilvania | ||
| Masul Pharmaceuticals | MSL | Health | Packilvania | ||
| Teigo | TGO | Logistics | Packilvania | ||
| Kvest | KVT | Technology | Cryria | 5 | 28,000,000,000 |
| Ars Global | ARG | Real Estate | Phoenixia | ||
| Diamond Hotels | DMH | Real Estate | Phoenixia | ||
| Dube | DUB | Consumer Discretionary | Phoenixia | ||
| Motion Pictures | MTPC | Consumer Discretionary | Phoenixia | ||
| Springhill Publishing | SPHL | Consumer Discretionary | Phoenixia | ||
| Ayog | AYOG | Consumer Discretionary | Phoenixia |