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Full-Text Articles in Securities Law
Credit Derivatives Market Design, Creating Fairness And Sustainability, Janis P. Sarra
Credit Derivatives Market Design, Creating Fairness And Sustainability, Janis P. Sarra
All Faculty Publications
Now that the first wave of the financial crisis has been resolved through the coordinated efforts of regulators and banks, it is important to address some of the systematic weaknesses of the current financial system. One such weakness is the inappropriate incentive effects of the market for credit derivatives, and in particular, for credit default swaps. As a risk management tool, credit derivatives were originally an effective means of diversifying lending risk. Credit derivatives have worked to cover exposures where there have been credit events of the underlying reference entities. To date, the global market for derivatives has operated largely …
Proportionate Securities Regulation: The Potential For Scaled Treatment Of Junior Issuers, Janis P. Sarra
Proportionate Securities Regulation: The Potential For Scaled Treatment Of Junior Issuers, Janis P. Sarra
All Faculty Publications
Particular features of Canada’s capital market inform our consideration of moving towards a more proportionate regulatory system. Specifically, Canada has a large number of small public companies; its market cap is concentrated largely in four provinces; it has a particular focus on mining, resources and technology; and a significant number of issuers are cross-listed on US exchanges. Canadian securities regulators have already recognized some measure of proportionate regulation in their national instruments, based on the type of listing. The paper suggests that a number of overriding principles or considerations should be taken into account in respect of a further move …