Amicus Brief in Goldman Sachs Group, Inc., v. Arkansas Teacher Retirement System.

This post contains the text of a recent amicus brief filed with the United States Supreme Court in the case of Goldman Sachs Group, Inc., v. Arkansas Teacher Retirement System. The case relates to claims about false or misleading statements that are intended to maintain inflated valuations. Amici argued that such claims should be upheld […]

From Laggard to Leader: Updating the Securities Regulatory Framework to Better Meet the Needs of Investors and Society

The following is the executive summary of a just released report from the Global Financial Markets Center titled: “From Laggard to Leader: Updating the Securities Regulatory Framework to Better Meet the Needs of Investors and Society.” The full report can be accessed here. Climate change, systemic racism, and unprecedented income and wealth inequality pose direct […]

What should financial regulators do to ensure operational readiness for zero or negative interest rates?

Since the global financial crisis of 2007-2008, interest rates in many countries have reached historically low levels. Central Banks in some countries such as Sweden, Denmark, Japan and Switzerland, as well as the European Central Bank, have even resorted to negative or zero reference interest rates as a monetary policy tool, relying on the transmission mechanism of monetary policy to meet their policy objectives.   Negative or […]

Governance externalities from mandatory disclosure regulation

Supreme Court Justice Louis Brandeis famously proclaimed in 1914 that “sunlight is the best of disinfectants.” Today, scholars, policymakers, and regulators commonly hold a related belief that mandatory disclosures can improve markets’ transparency and effectiveness. Typically, these thinkers believe disclosure-based regulation is superior to rules-based alternatives (e.g., Dalley 2007; Etzioni, 2010). The advantage of a disclosure-based approach over […]

Regulatory Enforcement in OTC Markets

Regulatory enforcement in over-the-counter (OTC) markets presents a unique challenge. Enforcement efforts by the Securities and Exchange Commission (SEC) among exchange-listed companies are facilitated by companies’ provision of audited financial statements and other extensive disclosures. Sophisticated investors and financial intermediaries, such as analysts and credit rating agencies, supplement the SEC’s monitoring efforts by reviewing corporate […]

Scoping and Defining Financial Inclusion, Access to Credit, and Sustainable Finance

The World Bank, for example, defines financial inclusion as encompassing access to credit and sustainable finance. Other definitions of financial inclusion are circular or conclusory. Writers on sustainable finance also conflate the terms with the environmental, social, and governance (ESG) movement in corporate law or the United Nations’ Sustainable Development Goals. This symposium article scopes […]

117th Congress Begins by Protecting Whistleblowers 

This post first appeared on the Climate Risk Disclosure Lab’s website.  As the 117th Congress commences, the United States is facing several immense and immediate challenges: the COVID-19 pandemic, its resulting economic crisis, and climate change among them. Against this backdrop, the House of Representatives has made protecting whistleblowers one of their first legislative actions.    Every Congress starts by passing rules that all members and staff must abide by. This year, the House rules for the 117th Congress, contained in House Res. 8, included provisions concerning whistleblowers.  In response […]

Reducing Regulatory Lag Using RegTech Derived from Current Practices in Financial Services Regulation

Scholars and lawmakers have long understood that regulation suffers chronic delay between the first appearance of a “regulable activity” and a government agency’s ultimate use of effective countermeasures. Regulatory lag (RegLag), which often results from Legal Lag. Legal Lag is a law and technology term that refers to situations in which “existing legal provisions are […]

A wonderful step toward fully dematerialized securities: Germany is utterly serious about carrying out its Blockchain Strategy within Europe 

Emerging blockchain ecosystems may be one of the most potent game-changers in financial and legal services over the next decade as some European countries have made substantial progress in terms of using and supporting distributed ledger technologies (“DLT”), today commonly known as “Blockchain”. Blockchain technology is applied in different sectors including the financial sector. In […]