Category Archives: Regulations

Restructuring the Personal-Public Gain Relationship: A Solution to the Battle Between Personal and Societal Interests

By | January 17, 2020

Courtesy of Kanksha Mahadevia Ghimire The United Nations Environment Programme issued a bulletin in 2013 highlighting the prevalent existence of corruption (fraud, bribery, abuses of power, etc.) in emissions trading, specifically the European Union’s Emissions Trading Scheme (EU ETS). Corruption undermines the emissions trading mechanism and weakens its chances to act as an effective incentive… Read More »

Summarization in Financial Disclosures: Determinants and Effects of Prospectus Summaries

By | January 14, 2020

Courtesy of Daniel Blaseg and Christina Bannier Issuers of financial securities must disclose vast amounts of information to capital markets. The increasing length and complexity of security prospectuses is an unambiguous sign of this development. To raise the comprehensibility of these documents, financial regulators around the world have started to require that issuers release an… Read More »

The Unintended Consequences of Deregulation: Equity Markets under the JOBS Act

By | January 2, 2020

Courtesy of Anantha Divakaruni and Howard Jones Eugene Schieffelin was a Shakespeare fan determined to introduce to the New World every species of bird appearing in the works of The Bard. In 1890 he released 100 of the European starlings mentioned in Henry VI in New York’s Central Park. Schieffelin’s starlings multiplied quickly and spread across… Read More »

Financial Stability Needs Macro-Financial Regulation of Banking M&A

By | November 8, 2019

Courtesy of Eduard Dzhagityan Guided by the objectives of international banking regulation reform in the post-crisis period (Basel III), I explore the idea of risk-centered regulation of mergers and acquisitions (M&A) deals. This idea introduces a new set of microprudential standards aimed at improving both the integrity of M&A and the stress resilience of the… Read More »

Building Fintech Ecosystems: Why Regulatory Sandboxes Tend to Get the Plaudits and Innovation Hubs Do the Work of Promoting Development, Innovation and Competition in Financial Services

By | October 8, 2019

Courtesy of Ross Buckley, Douglas Arner, Robin Veidt, and Dirk Zetzsche Regulatory sandboxes are the flavor of the month. Over 50 countries have now established or announced a “financial regulatory sandbox” since the UK Financial Conduct Authority established the first one in 2016. Sandboxes are safe spaces in which FinTech start-ups and other innovative enterprises… Read More »

Can Technology Undermine Macroprudential Regulation: Evidence from Marketplace Lending in China

By | September 10, 2019

Courtesy of Alberto Manconi, Fabio Braggion, and Haikun Zhu The Global Financial Crisis led economists and regulators to refocus on the relationship between household leverage and macroeconomic performance. The ensuing debate has revolved around how best to contain household debt using a variety of approaches, with much emphasis being placed on loan-to-value (LTV) caps, i.e.… Read More »

A Typology for Diagnosing and Remedying Regulatory Capture in Financial Regulation

By | May 7, 2019

Courtesy of Justin Rex The study of regulatory capture has a long history across various disciplines. Yet, scholars still disagree on its definition and pervasiveness. This post proposes a typology for organizing literature on regulatory capture under a few key dimensions to help scholars and practitioners better diagnose capture and choose appropriately tailored policy responses.… Read More »

The Network Effects of International Financial Regulation

By | March 4, 2019

Courtesy of Hadar Yoana Jabotinsky & Barak Yarkoni* In our globalized financial markets, the actions of a market participant or regulator in one jurisdiction can have a ripple effect in other jurisdictions, thus making international regulatory cooperation a necessity. International harmonization of financial regulation produces three different kinds of network effects, which we identify and… Read More »

Does Financial Tranquility Call for Stringent Regulation?

By | August 30, 2018

Courtesy of Deepal Basak and Yunhui Zhao[1] On August 22, 2018, the U.S. stock market broke the record for longest-ever bull market run after the S&P 500 went 3,453 days without a drop of 20 percent (a decline normally associated with a bear market). In fact, despite recent financial turbulence associated with monetary policy normalization… Read More »

China’s Unwelcome Stock Market Watchdog

By | May 23, 2017

Courtesy of Zuofa Wang 2016 was a wild ride for Chinese equity markets, with many institutional and retail investors suffering significant losses. Ironically, the market’s primary watchdog – the China Securities Regulatory Commission (CSRC) –  was the chief culprit for the market’s gyrations. This wasn’t the first time the CSRC intervened in China’s stock market… Read More »