facebook ipo – what liability for nasdaq? August 23, 2012Posted by Bradley in : Uncategorized , add a comment
Evelyn Rusli at the NYTimes Dealbook links to Citigroup’s comment letter on Nasdaq’s proposed approach to remediate harms caused to market participants during the facebook ipo (comments were due yesterday). Citigroup argues that Nasdaq’s claim to benefit from immunity is incorrect because Nasdaq was acting in its business capacity rather than as an SRO. It also argues that Nasdaq was grossly negligent. And there are policy arguments also:
Nasdaq effectively takes the position that it should not have liability for its failings because the for-profit exchanges are too critically important to have to potentially stand up for their errors, while brokers who fail as a result of poor planning must pay for their failure. This is an unlevel playing field premised on an outdated construct of exchanges as bastions of market integrity, rather than the for-profit corporations that they are today.
SIFMA is of the strong belief that Nasdaq did not act in an SRO capacity in carrying out the Facebook IPO. Rather, we believe Nasdaq was operating solely in its role as a for-profit market participant. In this regard, we note that Nasdaq received the Facebook listing, and its attendant listing fees, after a hard-fought competition with the New York Stock Exchange to gain Facebook’s listings business.
eesc opinion on how to involve civil society in financial regulation February 27, 2012Posted by Bradley in : Uncategorized , add a comment
The EESC announces that it is going to get more involved in discussions about financial regulation:
One of the difficulties in adopting rules in this field has been, and still is, how to ensure that differing and contradictory positions are given a balanced hearing within a pluralistic and democratic opinion-forming process. There is currently no effective counterweight from civil society organisations to the legitimate representation of the financial sector’s interests, and this asymmetry should be rectified in the new financial legislation.
And it urges the EU institutions and the Member States to act “to achieve wider involvement of civil society in the regulation of financial markets”.
some questions about self-regulation and compliance May 26, 2011Posted by Bradley in : financial regulation, Uncategorized , add a comment
Why, on recent flights between Miami and Newark, was it necessary for the pilot to threaten passengers that the flight would not be able to land or take off if they did not comply with instructions to turn off electronic devices (I know there’s controversy about whether this requirement is necessary but it is a requirement and non-compliance imposes costs on the passengers who do comply)?
Why is the SEC backdating documents (OIG Report stating the SEC’s Office of Administrative Services backdated a justification an approval of the SEC’s lease of premises)?
Is there a connection between citizens’ carelessness about paying attention to the rules and a regulatory agency’s carelessness about compliance with formalities? I suspect so.
european union bill January 12, 2011Posted by Bradley in : eu, Uncategorized , 1 comment so far
MPs were arguing (and arguing… they carried on for hours) about parliamentary sovereignty yesterday. Proponents of amendments to the European Union Bill to strengthen and emphasise parliamentary sovereignty (they lost) are most bothered by the EU itself (characterised by one speaker as having “tentacles”) and by judges who don’t seem to know their place (and who should see themselves as subject to removal by MPs if they don’t behave themselves). Here’s Bill Cash:
The threat comes not only from the common law radicalism of such judges but from the EU law itself, which claims constitutional supremacy over member states’ constitutions. We have also seen cases of terrorists appearing to get away with things and people not being deported when they should have been, as well as a whole range of other matters occurring under the European Human Rights Act, which, as I have said, is mirrored by the new charter of fundamental rights in the Lisbon treaty. We are witnessing a vast increase in the volume and impact of such legislation on the British people, and this is resulting in the anxieties I have described. Those anxieties could be allayed by my amendments, however, and it is time for us to turn the tide and make it clear exactly where we stand.
But Malcolm Rifkind made a pretty good point when he said:
The sovereignty of Parliament was not created by an Act of Parliament, and it has never depended on an Act of Parliament. How can its restatement in an Act of Parliament given any real added value to its legitimacy?
And others noted press reports suggesting the whole thing is a matter of shadow-boxing or smoke and mirrors. And, although Dennis MacShane tried to inject some truth about what the UK’s membership really involves:
I put it gently to hon. Members that they should be careful before getting what they wish-the disaggregation of the European Union, with every country rejecting European Court of Justice decisions that they do not like. France believed that it was sovereign when it refused to accept a pound, or a kilo, of British beef, at the time when the whole world thought that the beef was contaminated. We could not export it to Australia, and Canada would not accept it. The Commonwealth would not have it. Hong Kong, our Crown colony, would not have it. But the European Union had to accept British beef because the European Court of Justice accepted our scientific arguments that the beef was fit for sale in the common European market
the debate involved a lot of rhetorical flourishes and veered between competition to see who could quote more Latin to discussions of dead parrots. Not an inspiring read. And not a great legitimation of the concept of parliamentary sovereignty either.
strange questions journalists ask October 19, 2010Posted by Bradley in : Uncategorized , add a comment
Fiji has admitted losing the legal document confirming its independence from the United Kingdom. But does that threaten its existence as a state?
Although the article compares this lost legal document to a lost birth certificate, it is more like a lost copy of a divorce decree. After all, a birth certificate is evidence of the notification of a physical fact (which exists independent of any formal evidence of that fact), whereas the legal document Fiji lost was evidence of a change of status.
uphill struggle for lecce framework June 16, 2009Posted by Bradley in : Uncategorized , comments closed
The G8 finance ministers agreed the other day that:
For the market economy to generate sustained prosperity, fundamental norms of propriety, integrity and transparency in economic interactions must be respected.
But there’s regular evidence that this is an uphill struggle. Today the FSA announced the appearance in court of two lawyers charged with insider trading. Lawyers should surely know better (especially after O’Hagan) although they don’t seem to – insider trading is a pretty obvious breach of the law, and of propriety too.
departmental deck chairs June 8, 2009Posted by Bradley in : Uncategorized , comments closed
The UK’s Department of Business, Enterprise and Regulatory Reform is merging with the Department for Innovation Universities and Skills to create a new department for Business Innovation and Skills (BIS). It’s not obvious what the point of this rebranding is. BERR isn’t even two years old – it replaced the old DTI in 2007. The reaction at science business isn’t exactly a ringing endorsement:
The announcement of the new department does not say if the remit of DBIS includes rearranging the canvas covered collapsible seating on the decks of large ‘unsinkable’ ocean-going liners at risk of hitting an iceberg.
real world social responsibility June 2, 2009Posted by Bradley in : Uncategorized , comments closed
I just got back to Miami from the Law and Society conference in Denver, where I talked about my paper on credit rating agencies and heard about a lot of interesting work on regulation and governance in general and the financial crisis in particular. At the hotel where I stayed, part of a large chain, they had one of those environmental programmes which invited guests to re-use towels and sheets. These programmes don’t seem to me to work perfectly – even if you hang up the towels they sometimes seem to get replaced, and the rooms aren’t always adapted well to the need to hang up a used wash cloth, for example. I don’t mean that such programmes aren’t genuinely intended to be environmentally friendly, but the PR may be more splashy than any real impact. So this makes me wonder (and not for the first time) how real much corporate social responsibility is.
(dis)trust in institutions May 28, 2009Posted by Bradley in : Uncategorized , comments closed
The stories about MPs having designated one of their homes as a main residence for tax purposes and a different home as their main residence for the purposes of their parliamentary expense claims, about married MPs each claiming different homes as a second residence to maximise expense claims, second homes (which should be related to representation of constituents in some way, surely) miles from constituencies, and rent and salary payments to family members do seem to be in some ways a distraction from the real issues facing the country. But I think they do raise some very real questions about trust in institutions. How can people who seem to be very preoccupied with making sure they can manipulate the rules to their own best advantage be trusted to make sure that financial regulation works properly? It’s not clear how some of the possible reactions to the expenses scandals really respond to this underlying issue. How do fixed terms for MPs necessarily do much other than encouraging them to think about making sure they have profitable jobs after they leave?
Joan Smith complained this week in the Guardian that this was all really unfair to hardworking MPs. But a large number of commentators disagreed (some quite vehemently). Like it or not, MPs present themselves as representatives of their constituents’ interests and it doesn’t look good if they are able to maintain servants’ quarters and duck islands at taxpayer expense when the taxpayers worry about whether they will be able to keep up payments on a mortgage or feed their families.
what's in a name? April 30, 2009Posted by Bradley in : Uncategorized , comments closed
In deference to the fine sensibilities of pig farmers, the EU isn’t calling the current virus “swine flu”, but rather “novel flu”. Apparently they are not so worried about the feelings of authors and publishers (and in any case, in other languages this doesn’t work – in French the illness is being called un nouveau virus de la grippe).