Hybrid journal (It can contain Open Access articles) ISSN (Print) 1750-7219 - ISSN (Online) 1750-7227 Published by Oxford University Press[370 journals]
Authors:Gulati M. First page: 1 Abstract: Recent market movements in response to Brexit and Donald Trump’s election tell us that the global markets care about what happens in these countries. And we will undoubtedly see more movements in response to the potentially game-changing votes taking place soon in France, Italy and Austria. Not meaning to speak for any of my co-editors, this Capital Markets Law Journal editor finds the move towards insularity and nationalism (and away from a more integrated global system) worrisome. But maybe the markets, and particularly the bond markets, can and will act as a check on some of these tendencies? PubDate: 2017-02-11 DOI: 10.1093/cmlj/kmw030
Authors:Stumpf MH. First page: 3 Abstract: Key PointsDespite abundant public information accompanying bonds issued in uncertificated global form, fraudsters have repeatedly succeeded in fabricating and selling certificated versions of the bonds.The physical appearance of the fake bonds makes it difficult for unsuspecting purchasers to accept that they are worthless. Fraudulent ancillary documentation contributes to their purported authenticity.The certificated instruments may be issued in complex transactions whose characteristics facilitate the fraud.There may be a mutuality of fraud in which the purchaser acquires the bonds to further a separate fraudulent scheme.The recent case of Conversion Solutions Holdings Corporation illustrates a number of these points.Issuers such as the Federative Republic of Brazil have been proactive in countering frauds of this nature. PubDate: 2017-01-15 DOI: 10.1093/cmlj/kmw033
Authors:Chabot B; Santarosa V. First page: 9 Abstract: Key pointsRecent US court rulings that Argentina must honour its sovereign debt have been criticized by the legal community for possibly damaging New York’s standing as a financial centre and hindering developing countries’ ability to borrow.This article asks whether such criticism is warranted and notes that, before World War I the London Stock Exchange (LSE) enforced sanctions that similarly prevented nations in default from accessing international capital markets yet sovereign borrowers flocked to London and this era is known as the golden age of capital mobility.Through hypothecation clauses enforced by the LSE, sovereign borrowers were able to credibly commit to punishment should they default.By agreeing ex ante to commitment mechanisms that made default more costly, sovereign borrowers were able to access credit markets and borrow at lower rates in an era of absolute sovereign immunity. PubDate: 2017-02-11 DOI: 10.1093/cmlj/kmw026
Authors:Godwin A; Ramsay I, Sayes E. First page: 38 Abstract: Key pointsThis article explores important issues relating to regulatory coordination and integration in the regional setting and endeavours to locate these issues within a conceptual framework.It considers the benefits of and challenges to regional coordination and integration, the potential principles and mechanisms that might be used to motivate and structure regional coordination and integration, and suggests a systematic set of criteria to evaluate which mechanism might be the most appropriate in any given context.This article takes as its point of reference OTC derivatives trading and OTC derivatives markets. PubDate: 2017-01-06 DOI: 10.1093/cmlj/kmw028
Authors:Colla P; Gelpern A, Gulati M. First page: 66 Abstract: Key pointsMarket reports have argued for much of 2016 that Venezuela is on the brink of default on upwards of $65 billion in debt. That debt is comprised bonds issued directly by the sovereign and those issued by the state-owned oil company Petróleos de Venezuela SA (PDVSA).Based on the bond contracts and other legal factors, it is not clear which of these two categories of bonds would fare better in the event of a restructuring. However, market observers are convinced—and we agree—that legal and contractual differences would likely impact the payouts on the bonds if Venezuela defaults.Using a comparison of weekly yields for roughly similar PDVSA and pure sovereign bonds, we attempt to gain some insights into the value investors assign to the legal differences between these two categories of bonds. PubDate: 2017-01-06 DOI: 10.1093/cmlj/kmw027
Authors:Lim R. First page: 78 Abstract: Key pointsIn 2009, China disclosed plans for an international board (‘Proposed Shanghai International Board’) to be launched on the Shanghai Stock Exchange. The Proposed Shanghai International Board, if implemented, will be the first Mainland venue for international firms to issue shares to Chinese Mainland investors. Nonetheless, plans for the Proposed Shanghai International Board appear to have been shelved indefinitely since 2012.In the meantime, China has introduced key new initiatives and/or proposed important changes to the access and functioning of its’ capital markets. These include: (i) the launch of the Shanghai–Hong Kong Stock Connect in 2014, (ii) the upcoming launch of the Shenzhen–Hong Kong Stock Connect and (iii) the proposed shift towards a registration-based system for initial public offerings (IPOs). The key developments are addressed in Section 1 of this article.Section 2 of this article discusses the prospects for the re-launch of the Proposed Shanghai International Board with reference to three underlying trends, namely (i) capital account liberalization, (ii) the need for increased portfolio diversification and (iii) the need to improve corporate governance in China. This article makes the point that the Proposed Shanghai International Board (or some variation of it) can be a prudent way to provide increased portfolio diversification options for Chinese investors and improve corporate governance of the Chinese capital markets without jeopardizing China’s control over capital flows. PubDate: 2017-01-06 DOI: 10.1093/cmlj/kmw025
Authors:Nabilou H. First page: 94 Abstract: Key pointsThis article analyses the regulatory measures adopted to address the potential contribution of hedge funds to financial instability in the USA and the EU in the wake of the Global Financial Crisis.The relevant provisions of the Dodd–Frank Act include two sets of direct regulatory measures. The first set of these measures addresses information problems, whereas the second set is intended to address potential too-big-to-fail problems by imposing prudential regulation on systemically important non-bank financial companies. The article then studies the Volcker Rule, as an indirect regulatory measure intended to address the potential systemic risk of hedge funds originating from their interconnectedness with Large Complex Financial Institutions (LCFIs).The second section of this article analyses the European Directive on Alternative Investment Fund Managers and its attempt to address the potential contribution of hedge funds to financial instability.Despite the common driving forces of hedge fund regulation across the Atlantic, ultimate policy outcomes were significantly divergent. Primarily concerned with creating a single market for Alternative Investment Funds, EU regulators prioritized the EU passport mechanism, which engendered demand for investor protection and more stringent and direct regulatory measures.In contrast, the main concern in the USA was to address potential systemic risk of hedge funds. Such differential regulatory objectives gave birth to indirect regulation of hedge funds with a focus on their interconnectedness with LCFIs. This is mainly embedded in the provisions of the Volcker Rule; a rule whose absence is significantly palpable in the EU regime for regulating hedge funds. PubDate: 2017-02-11 DOI: 10.1093/cmlj/kmw031
Hybrid journal (It can contain Open Access articles)
[370 journals]
