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In October 1990, the defendant telephoned the plaintiff, convincing him to invest in futures options. After the plaintiff had signed an investment contract, the defendant began to trade in put and call options for the plaintiff, charging $300 in commission for each transaction. This led to remarkably high commissions. As the plaintiff's two accounts began to depreciate steadily, he ordered the defendant to close them. Subsequently, he sued the defendant claiming all his money back.

Recent developments in Spanish company law will favour access by Spanish companies to new financial mechanisms. One of these developments relates to the possibility for Spanish companies — previously not recognized by law — to issue redeemable shares (acciones rescatables), as an instrument through which the company may obtain additional funds for a limited time. This type of share represents an intermediate between fixed-income and variable-income securities. The main features of this new regime are as follows:

As Russia's economic and financial crisis continues, there have been a number of important legislative and policy developments, including the following:

On July 1 1998 Commissione Nazionale per le Società e la Borsa (CONSOB) approved Resolution No. 11522 introducing new rules for intermediaries. The rules describe the procedure to be followed by an EU investment company to obtain authorization from the Italian authorities to offer in Italy services not admitted to mutual recognition.

On October 21 1998, the ministry of finance adopted a new regulation on the valuation of receivables, investments and contingency liabilities as well as of the contractual guarantees of credit institutions. Until then, these issues had been regulated through instructions by the banking supervisory authority which ceased to exist in 1997 and was replaced by the Money and Capital Market Supervisory Authority. These instructions have now been overruled by the new regulation entering into force on November 5 1998.

On October 12 1998, Deutsche Börse began step two of its electronic trading system: Xetra Release 3. All of the 2,000 or so German and foreign stocks listed on the Frankfurt Stock Exchange as well as 360 bonds and 28 equity warrants may now be traded electronically. British securities are excluded from trading on Xetra because all market participants of Deutsche Börse may trade British securities on the London Stock Exchange by means of its electronic trading system SETS from January 1999.

The ministry of finance submitted a government bill on amending the Finnish Securities Market Act to parliament in October 1998.

New Personal Property Securities legislation will soon be introduced to parliament. It has been described as New Zealand's most significant commercial law reform since the 1993 Companies legislation, and the change is long overdue; New Zealand's existing securities law is a confusing mixture of common law and various statutory rules. It is likely that the new legislation will be based largely on North American precedents and that it will replace not only the various existing statutes, but also the equitable and common law rules regulating the priorities of competing securities. The overriding intention is that all forms of security should be regulated in the same manner, and that the same rules should apply whether the debtor is an individual or a company. Further details regarding this important change will be reported on in a later edition.

On October 6 1998 the People's Bank of China ordered the closure of a non-bank financial institution, Guangdong International Trust and Investment Co (GITIC). Although this has worried foreign financial institutions and the media, it must be seen as a significant step towards a market economy and the implementation of the rule of law.

Brazil has won international support for its reform programme. A $41.5 billion loan is being made available over three years; $37 billion to be used, if necessary, in the first 12 months. Of the total amount, $18 billion is being secured by the IMF, $4.5 billion by the World Bank, $4.5 billion by the Inter-American Development Bank and $14.5 billion by a pool of 20 countries, including a contribution of $5 billion from the US. In return, Brazil is committed to attaining budget surpluses, before interest, of 2.6% of GDP in 1999, 2.8% in 2000 and 3% in 2001. The government aims to achieve this by implementing a programme described in a memorandum, which makes clear that the present exchange rate policy will remain unchanged to secure a low inflation rate. Brazilian domestic interest rates will be kept at about 20% in 1999. About $9 billion should be disbursed when the IMF approves the memorandum in a couple of weeks. Another instalment of about $9 billion would be available in February 1999 if the IMF is satisfied with the implementation of the programme. The programme includes: