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Telecommunications provider Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) issued US$200 million in Yankee bonds through its Cayman Islands subsidiary CANTV Finance. This is the first issuance of Yankee bonds by a Venezuelan corporation. Chase Securities acted as lead underwriter, with Goldman Sachs as co-manager.

Canadian firm Tory Tory DesLauriers & Binnington has closed its Hong Kong office after five years. The move follows the departure of partner Melissa Thomas to UK rival Freshfields.

Earlier (see International Financial Law Review, October 1996, page 46) briefings on changes brought about by the EU Company Law Amendment Act 1996 focused on those provisions which have a particular effect on the Austrian banking sector. The following seeks to provide a more general outline of the contents of the Act.

Although small in volume compared with fixed-income and equity products, the market for emerging markets OTC derivative instruments looks set to grow. Ovidio E Diaz Espino, of J P Morgan & Co, looks at the products available and the obstacles they still face

The revised provisions of the Swiss Code of Obligations (CO) regarding joint stock companies have improved the legal position of 'participants'. A 'participant' is the holder of participation certificates, which are part of the participation capital and have a par value.

The House of Lords has delivered an important decision on the measure of damages for fraudulent misrepresentation. In Smith New Court Securities v Citibank, Smith New Court (SNC) was induced by a Citibank employee's fraudulent misrepresentation to buy shares in Ferranti from Citibank. It was subsequently discovered that a separate fraud involving fictitious contracts had been perpetrated on Ferranti designed to bolster its apparent profitability. On discovery of the second fraud, Ferranti's share price crashed and SNC eventually sold the shares at a heavy loss.

The landmark Provisional Regulations on the Administration of Qualifications of Domestic and Foreign Securities Institutions Dealing in Foreign Investment Shares became effective on December 1 1996. The regulations aim to standardize the qualifications of domestic and foreign securities institutions, such as brokerages and underwriters, that deal in foreign investment shares listed on the Chinese market and domestic securities institutions that deal in foreign investment shares listed outside China.

The adoption of a new Regulation M on issue-related market activities should facilitate cross-border capital raisings. By Richard Muglia and Joel Roberto of Skadden, Arps, Slate, Meagher & Flom LLP, London

International marine container lessor, passenger transport and hotels company Sea Containers has completed a securitization of marine cargo containers. This is the first securitization using equipment rather than a stream of payments as assets. The transaction involved the transfer by Sea Containers of a portion of its marine containers and related assets to a special purpose Bermuda subsidiary, Sea Containers SPC. SPC is using the equipment as collateral for up to US$200 million in notes.

The latest offshore exchange to open will be of particular interest to mutual funds formed but not listed in the Caribbean tax-free jurisdiction. By Chris Narborough and Andrew Kidd of Truman Bodden & Company, Grand Cayman