Law Commons^™

Replacing Libor: Dangerous Improvisation, 5 J. Marshall Global Mkt. L.J. 49 (2019), Karl Muth

John Marshall Global Markets Law Journal

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The Return Of Deregulation And Trickle-Down Economics In The Age Of Trump: Why The Efficient Market Hypothesis Refuses To Die And The Implications For U.S. Economic Policy At Large, 5 J. Marshall Global Mkt. L.J. 1 (2019), Matthew Glass

John Marshall Global Markets Law Journal

The 2008 market collapse created economic devastation not seen in the United States since the Great Depression. More than a decade later, the reappearance of a fiscal agenda rooted in deregulation and trickle-down economics risks a return to the boom and bust cycles that have unfailingly wrought great economic pain on the American people. The ever-increasing inequality gap between the rich and poor is particularly concerning.

Should Cryptocurrencies And Initial Coin Offerings (Icos) Be Regulated Under Australian Financial Services Laws?, 5 J. Marshall Global Mkt. L.J. 27 (2019), Daniela Lai

John Marshall Global Markets Law Journal

The rise of the popularity of cryptocurrencies in the last few years has sparked international debate as to the characterization of cryptocurrencies and tokens issued by ICOs. The decentralized nature of cryptocurrencies and ICOs raises fundamental challenges as to the parties and tokens that should be regulated and how they should be regulated. This Article proposes that tokens which are similar to securities should be regulated like securities. Under Australian law, this Article proposes that digital currencies should be categorized as financial products with the exception of utility tokens. Entities issuing ICOs and cryptocurrency exchanges should be subject to disclosure …

Cross-Border Scope Of Private Cause Of Action Under The Commodity Exchange Act, 5 J. Marshall Global Mkt. L.J. 58 (2019), Alina Petrova

John Marshall Global Markets Law Journal

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Regulation Without Deflation: Cryptocurrency And Its Insider Trading Conundrum, 51 J. Marshall L. Rev. 797 (2018), Emily Crane

UIC Law Review

2017 was a landmark year for cryptocurrency. In that year, it burst onto the global economic scene and attracted investments from people and organizations all around the world. Its popularity gave rise to cryptocurrency exchange platforms, which seemed to further herald its arrival into the mainstream. However, these entirely unregulated exchange platforms have fostered insider trading that has no discernable recourse—and U.S. policymakers have done little to stop it. As such, this article explores the phenomenon that is cryptocurrency, the trend of insider trading, and the difficulties facing U.S. officials as they attempt to reconcile cryptocurrency’s novelty with its need …

Protecting Trade Secrets Under International Investment Law: What Secrets Investors Should Not Tell States, 15 J. Marshall Rev. Intell. Prop. L. 228 (2016), Daria Kim

UIC Review of Intellectual Property Law

The article addresses specifics of trade secret protection under international investment law. As a particular example, it analyzes protection of pharmaceutical regulatory data against the background of the growing public policy campaign for broader access to clinical trial data and the recent unprecedented practice of the European Medicines Agency of disclosing clinical dossiers submitted for drug marketing approval. Given the significant role of foreign direct investment in the global pharmaceutical industry and substantial, exponentially increasing costs incurred by drug originator companies in conducting clinical trials, the prospect of investor-state dispute over data disclosure does not appear purely hypothetical. The question …

Treating The New European Disease Of Consumer Debt In A Post-Communist State: The Groundbreaking New Russian Personal Insolvency Law, 41 Brook. J. Int'l L. 655 (2016), Jason J. Kilborn

UIC Law Open Access Faculty Scholarship

This article examines the tumultuous transition from restrictive Communism to the debt-fueled consumer economy of modern Russia. In particular, it surveys Russia’s legal response to severe debt distress, situating it in the context of nearly one thousand years of historical development. Effective 1 October 2015, Russia finally joined most of its European neighbors in adopting a personal bankruptcy law, with characteristics that reflect both evolving international best practices and a series of lessons not learned. This article offers the first detailed exposition in English of the two steps forward represented by this new law, as well as an evaluation of …

The Extraterritorial Effects Of The Volcker Rule, 4 J. Marshall Global Mkt. L.J. 1 (2016), Liliya Bozhanova

John Marshall Global Markets Law Journal

Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as the “Volcker Rule”, essentially prohibits “banking entities” from engaging in “proprietary trading” and from acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with a hedge fund or a private equity fund. The rule has been controversial not only because of its substantive content but also due to its extraterritorial reach, which has a significant impact on foreign banking entities that have U.S. affiliates. The Volcker Rule’s extraterritoriality lies within the broad definition of the term “banking entity”, which includes not …

Insiders Anonymous: The Third Circuit Rehabilitates Sec Rule 10b5-2(B)(2) And Extends Liability For Insider Trading To Non-Fiduciaries In United States V. Mcgee, 4 J. Marshall Global Mkt. L.J. 15 (2016), Scott Henry

John Marshall Global Markets Law Journal

This Article examines the development of insider trading law under SEC Rule 10b-5, and the Third Circuit Court’s decision in United States v. McGee to extend liability for securities fraud under Rule 10b5-(2)(b)(2) to corporate outsiders without a fiduciary relationship to the corporation in whose securities they trade.

Regulation Automated Trading: Cftc Source Code Turnover Provision Is Unnecessary And Dangerous To U.S. Markets, 4 J. Marshall Global Mkt. L.J. 37 (2016), Thomas Laser

John Marshall Global Markets Law Journal

Over the past several decades, the financial markets have experienced a technological revolution in how securities and other financial instruments are traded. Where these contracts and assets were once traded on the floors of various registered brick and mortar exchanges across the globe, they are now primarily traded via online platforms. While allowing greater efficiency and transparency in the markets, this shift has also spawned the practice of high-frequency algorithmic trading. This process uses highly sophisticated computers and complex algorithms to trade securities and derivative products faster than the human eye can blink. Although many argue that high-frequency algorithmic trading …

A Trending Use Of Insulation And A Temporary Way Out, 4 J. Marshall Global Mkt. L.J. 51 (2016), Jennifer Leung

John Marshall Global Markets Law Journal

In order to understand the constitutionality of the SEC’s administrative process, Part II of this Article begins with a history of Article II’s Appointments Clause. Part III describes the competing theories resulting from a circuit split, specifically Hill v. Securities & Exchange Commission and Bebo v. Securities Exchange Commission. Part IV of this Article then evaluates the impact of the Appointments Clause on the Dodd-Frank Act and discusses the consequences of raising meritless constitutional questions that jeopardize the intent of the Dodd-Frank Act. Subsection IV.A. explains the exhaustion doctrine and subsection IV.B. explores Congress’s intent of implementing the Dodd-Frank Act, …

The Political Economy Of Corporate Financial Regulatory Legislation, 49 J. Marshall L. Rev. 679 (2016), Michael Patrick Wilt

UIC Law Review

This article will discuss corporate financial regulatory legislation and its enforcement at the federal level in light of interest group politics and will seek to develop a better understanding of how federal corporate financial regulatory legislation is enacted by examining legislative history. The goal of this article is to provide an overview of the legislative history of two important laws (the Foreign Corrupt Practices Act and the Sarbanes Oxley Act) and how interest group politics affected their passage. “Business” interests (in general) are different from the interests of the accounting industry, and both interest groups will be considered. Unlike most …

Pause And Harmonize: Issues On The Dodd-Frank Act And Its Cross-Border Applications, 3 J. Marshall Global Mkt. L.J. 89 (2015), Yankun Guo

John Marshall Global Markets Law Journal

The 2008 financial crisis was a rude awakening for global financial regulators. The lack of transparency and regulation of the derivatives market was a major contributing factor to the global economic recession. As a response, world leaders pledged to bring economic and regulatory reform to their respective nations. In order to meet these goals, the United States proposed the Dodd-Frank Act and, in 2010, the Act was signed into law by President Obama. One of the purposes of Dodd-Frank is to allow financial regulators to police all derivative contracts that may affect the United States; unfortunately, the extraterritorial reach of …

Municipal Bondage: The Undisclosed Disclosure Obligations On Municipal Securities Issuers, 3 J. Marshall Global Mkt. L.J. 111 (2015), Claymore Hardman

John Marshall Global Markets Law Journal

The municipal securities market has recently become the target of increased regulatory scrutiny. Once considered a “sleepy market,” the market is now burdened by new regulations, increased oversight, and heightened enforcement, which place direct disclosure obligations on municipal securities issuers. As such, the clear provisions of the 1975 Tower Amendment, which limit regulation of the municipal securities market to anti-fraud actions, have been cut off at all corners. This Article examines the fundamental discord between regulating the municipal securities market with the same structure and intensity as the corporate securities market. This Article proposes limiting the reach of federal regulatory …

National Company Disclosure Regulatory Frameworks: Superficially Similar But Substantively Different, 3 J. Marshall Global Mkt. L.J. 187 (2015), Gill North

John Marshall Global Markets Law Journal

The United States has led the world for many decades with regard to company disclosure rules and standards; other national company disclosure structures are based largely on the U.S. model. In December 2013 the U.S. Securities and Exchange Commission (the “SEC”) indicated that it intended to review Regulation S-K, which contains many important rules governing listed company reporting in the United States. This Article calls for the SEC to maintain its comprehensive approach to corporate disclosure regulation and practice as an essential platform for the future health of global financial markets. This Article highlights the importance of the global leadership …

Charting A New Revolution In Equity Crowdfunding: The Rise Of State Crowdfunding Regimes In Response To The Inadequacy Of Title Iii Of The Jobs Act, 3 J. Marshall Global Mkt. L.J. 135 (2015), Christopher Douglas Mitchell

John Marshall Global Markets Law Journal

States, through the recent implementation of intrastate crowdfunding exemptions, have become significant players in the creation of an equity crowdfunding industry in the United States. Crowdfunding is an alternative capital-raising source for businesses and entrepreneurs, where investing and capital-raising takes place through solicitations of small amounts of money from a large number of people, typically via the Internet. While the federal crowdfunding provisions in Title III of the federal Jumpstart Our Business Startups Act (“JOBS Act”) have received much publicity, states are taking a leading role in enacting equity crowdfunding laws. State-enacted intrastate crowdfunding laws authorize securities offerings by residents …

Taming The Wild West Of Wall Street: Regulating Credit Default Swaps After Dodd-Frank, 48 J. Marshall L. Rev. 565 (2015), Benjamin O’Connor

UIC Law Review

No abstract provided.

Bear Stearns And Lehman Brothers: “Too Big To Fail’S” Impact, 3 J. Marshall Global Mkt. L.J. 49 (2014), Natalie Warrington

John Marshall Global Markets Law Journal

The 2008 financial crisis led to controversial government bailouts of institutions that were deemed “too big to fail” (TBTF). Critics propose that systemic risk and TBTF were the main causes of the financial collapse of Bear Stearns and Lehman Brothers—two of the institutions that were at the center of the bailout controversy. These bailouts have been criticized as creating moral hazard which, for financial institutions, means that decision makers, counterparties, creditors, and shareholders will take fewer precautions and take on more risk since the government will bail them out. However, whether various market participants in fact take fewer precautions and …

Admission Of Guilt: Sinking Teeth Into The Sec’S Sweetheart Deals, 3 J. Marshall Global Mkt. L.J. 27 (2014), Larissa Lee

John Marshall Global Markets Law Journal

Throughout its existence, the U.S. Securities and Exchange Commission (“SEC”) has allowed defendants to settle cases without admitting to the allegations of wrongdoing. This “neither admit nor deny” policy has received heavy criticism by judges, Congress, and the public, especially in the wake of the 2008 financial crisis. On June 18, 2013, SEC Chairman Mary Jo White announced the agency’s intention to require admissions of guilt in certain cases. While Chairman White did not articulate a clear standard of when admissions would be required, she did say that the agency would focus on the egregiousness of the defendant’s conduct and …

Community Of Support: Moving Toward Indirect Regulation Of The Hedge Fund Industry, 3 J. Marshall Global Mkt. L.J. 1 (2014), Randy Haight

John Marshall Global Markets Law Journal

The popularity of hedge funds has exponentially increased over the past decade due to the unparalleled gains that hedge funds present for investors. However, hedge funds remain largely unregulated in comparison to other financial instruments such as traditional stocks and derivatives. The emergence of the hedge fund as a component of the financial industry has brought with it questions pertaining to the optimal method of hedge fund regulation. The foremost concern in regulating hedge funds is to strike a balance between market stability and investor protection. In order to do so, an equilibrium must be found between leaving hedge funds …

Emerging Growth Companies Under The Jobs Act: An Analysis Of The “Ipo On-Ramp”, 3 J. Marshall Global Mkt. L.J. 63 (2014), Kiersten Zaza

John Marshall Global Markets Law Journal

Since 2008, the United States has been faced with a “jobless recovery” which can be attributed in part to a decline in new business creation. To study the link between small companies’ access to markets and creation of jobs, the IPO Task Force was created. The IPO Task Force conducted research and set forth various findings regarding the correlation between emerging growth companies and job creation. The IPO Task Force also attributed a decline in IPO activity to the complex regulatory environment. Accepting these findings, and in response, the JOBS Act passed with surprisingly high bipartisan support. The JOBS Act …

Checking Out Of The Exception To 3-104: Why Parties Should Be Able To Negotiate Whether Checks Should Be Payable On Demand, 3 Colum. J. Race & L. 73 (2013), Linda R. Crane

UIC Law Open Access Faculty Scholarship

Many aspects of American society, including its legal system, operate to the disadvantage of minorities. Obvious examples include inequities in our criminal/justice system and in school funding. Much has been written on those and other topics. This article focuses on another example, specifically on how a sweeping change to an obscure banking rule regulating the check collection process has negatively affected consumers in general, and minority groups in particular.

U.S. check collections require a complex system comprised of a variety of institutions including commercial banks, savings and loans, savings banks, and credit unions, as well as the customers who rely …

Abandoning Foreign Depositors In A Bank Failure? The Efta Court Judgment In Efta Surveillance Authority V. Iceland, 2 J. Marshall Global Mkt. L.J. 1 (2013), Valia Babis

John Marshall Global Markets Law Journal

Deposit insurance is a key issue in bank regulation. A mismatch exists, especially in the European Economic Area, between the freedom of banks to operate across borders and the fact that deposit insurance operates on a national basis. EFTA Surveillance Authority v. Iceland examines the protection of overseas depositors in the event of a cross-border bank failure. In EFTA Surveillance Authority, the court examined a state’s responsibility to ensure compensation to depositors and possible discrimination against foreign depositors. This Article reviews the paradoxical holding by the court in light of the facts and circumstances of the case. Further, the Article …

The Future Of The Commodity Futures Market: How Customer Segregated Accounts Can Be Better Protected From Insolvent Futures Commission Merchants, 2 J. Marshall Global Mkt. L.J. 13 (2013), Zachary Brumfield

John Marshall Global Markets Law Journal

Two of the largest futures commission merchants (“FMCs”)—MF Global and Peregrine Financial Group—filed for bankruptcy in 2011 and 2012, respectively. The bankruptcies of two of the largest players in the futures commodity market shook up the industry. Many customers became weary and distrustful of FCMs. This Article proposes solutions in order to boost customer confidence in the futures market without deterring the largest futures traders. Further, this Article discusses the pitfalls of the current regulatory model with respect to customer segregated funds and the necessary changes to the current regime by the CFTC and other self-regulatory organizations. After the MF …

Transatlantic Mutual Recognition In The Field Of Global Financial Regulation, 2 J. Marshall Global Mkt. L.J. 43 (2013), Nico Klein

John Marshall Global Markets Law Journal

International cooperation and coordination among countries is a highly sought after goal for many. In that regard, in order to achieve international cooperation and coordination, this Article focuses on the concept of mutual recognition and the key areas of global financial regulatory reform to which the concept could be applied. The benefits of mutual recognition are increased market liberalization, facilitation of private cross-border movement, and increased regulatory standards. To discuss the concept of mutual recognition, this Article examines the European Union/European Economic Area approach provided by the Markets in Financial Instruments Directive (“MiFID”). This Article reviews the EU’s idea of …

The D.C. Circuit Court’S Opinion In Hunter V. Ferc: A Panacea For Resolving A Jurisdictional Dispute Or Mere Panache?, 2 J. Marshall Global Mkt. L.J. 69 (2013), Matthew Kluchenek, Regina Speed-Bost, Laura Chipkin, Rachel Remke

John Marshall Global Markets Law Journal

The Commodity Futures Trading Commission (“CFTC”) and the Federal Energy Regulatory Commission (“FERC”) were in a jurisdictional tug-of-war until March 2013, when the D.C. Circuit Court of Appeals issued a much anticipated decision in Hunter v. FERC. This Article discusses the Hunter case, which offered some clarity as to the jurisdictional boundaries of the CFTC and FERC with regard to certain types of futures contracts. Historically, the CFTC has been authorized by the Commodity Exchange Act (“CEA”) to prevent and regulate fraud and manipulation in the futures market. On the other hand, FERC is an independent agency charged with the …

Lien-Stripping In The Absence Of A Discharge: Bankruptcy's Answer To The Destruction Caused By Excessive Home Equity Extraction, 46 J. Marshall L. Rev. 915 (2013), Gregory Guest

UIC Law Review

No abstract provided.

Reforming The Second Tier Of The U.S. Pension System: Tabula Rasa Or Step By Step?, 46 J. Marshall L. Rev. 631 (2013), G. A. (Sandy) Mackenzie, Jonathan Barry Forman

UIC Law Review

No abstract provided.

Revisiting The Leveraged Buyout: Is Constructive Fraud Going Too Far?, 46 J. Marshall L. Rev. 429 (2013), Angelo Guisado

UIC Law Review

No abstract provided.

A Balanced Budget Amendment Fit For The Constitution: The Elimination Of Partisanship And Substantive Provisions, 46 J. Marshall L. Rev. 583 (2013), Shane Nichols

UIC Law Review

No abstract provided.