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Asian issuers of securities in the EU face potentially expensive, time-consuming and uncertain disclosure obligations under Europe's new prospectus laws. By Swain Roberts and Denise Cheong of Linklaters Allen & Gledhill

Stock Exchange organization Euronext has eliminated the so-called all-or-nothing order as of September 1 2003, whereby investors and traders can ensure that a stock exchange order is either completely executed out or not executed at all. According to the stock exchange, this type of order confuses investors and too little use is made of it. This is particularly important with stocks that are rarely traded. Because of a lack of counterparties, an ordinary stock exchange order often leads to partial execution of the order. This results in high costs. Sometimes partial execution is inadequate for the acquisition of the necessary number of parts. According to Euronext, the all-or-nothing order leads to a lack of clarity among investors. "Confusion exists if the share price conforms to the limit set, but the order is not performed due to the number of parts not corresponding," it said. According to Euronext, too little use is made of the order in The Netherlands. "Less than 1% of the turnover in the order book is a result of all-or-nothing orders," the exchange said. In France and Belgium, the order is used particularly by private investors.

Italian legislation authorizes local authorities to use derivative transactions only to hedge against interest rate, exchange and currency risks connected to their financing transactions.

After much review and discussion, on June 6 2003, the parliament of Georgia adopted the Law on the Prevention of the Legalization of Illegal Revenues. The law is expected to assist the Georgian government in fighting two of the country's most problematic economic issues - money laundering and tax evasion. The legislation creates mechanisms to prevent the legalization of illegal revenues and the financing of terrorism. It will apply equally to both residents and non-residents of Georgia, as well as to their representatives, representative offices and branches.

Spanish firm Uría & Menéndez is advising energy company AES on the €665 million ($766 million) financing for the construction of the largest independent power project developed in Spain so far.

Lone Star's purchase of a controlling stake in Korea Exchange Bank (KEB) for $1.2 billion is the largest-ever private equity deal in Asia, excluding Japan.

Shearman & Sterling and Slaughter and May are advising on a telecoms deal valued at €7.1 billion ($7.6 billion) that should see France Telecom take full control of mobile phone operator Orange.

On September 19 2003 the Brazilian Securities Commission (the Comissão de Valores Mobiliários or CVM) rejected a request made by representatives of the accounting profession and other trade associations for relief from existing regulations that require the rotation of independent auditors of listed companies. The CVM has also suggested that existing accounting standards may require the rotation of lead audit partners, as well as the rotation of the audit firm.

The accidental effects of a new banking code of practice in Australia mean banks must add new clauses into financing documents on deals that involve special purpose vehicles. Phillip Cornwell and Ian Wallace of Allens Arthur Robinson report

Hong Kong's proposed update of prospectus laws will make life easier for issuers, especially those selling to institutional investors, explains Alice Chan of the University of Hong Kong