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A New Era In The Application Of U.S. Securities Law Abroad: Valuing The Presumption Against Extraterritoriality And Managing The Future With The Sustainable- Domestic-Integrity Standard, Alina Veneziano
Annual Survey of International & Comparative Law
The U.S. Supreme Court in Morrison held that Section 10(b) of the Exchange Act did not apply extraterritorially, lacking a clear indication by Congress of the intent to do so. In reaching this conclusion, it clarified that the reach of Section 10(b) is a merits question, not a question of subject matter jurisdiction and stated that the focus of the statute was upon purchases and sales of securities in the United States while articulating a bright-line transactional test to determine whether extraterritorial application was appropriate. The transactional test completely rejected the conduct/effects tests, which had been used by courts for …