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Transnational Legal Ordering And Regulatory Conflict: Lessons From The Regulation Of Cross-Border Derivatives, Hannah L. Buxbaum
Transnational Legal Ordering And Regulatory Conflict: Lessons From The Regulation Of Cross-Border Derivatives, Hannah L. Buxbaum
Articles by Maurer Faculty
This paper is about the theory and practice of transnational legal ordering. It seeks to gain insight into how transnational legal orders advance by examining one particular problem: the regulation of over-the-counter derivatives. It focuses on events following the global financial crisis, which exposed the deficiencies of the existing regulatory order in identifying and containing the risks created by trading in those securities. In the aftermath of the crisis, the cross-border systemic risk created by OTC derivatives trading was characterized as a problem of global dimension that necessitated a global response. A wide array of actors and institutions, both domestic …
Tlos And Global Financial Markets: The Case Of Derivatives, Hannah L. Buxbaum
Tlos And Global Financial Markets: The Case Of Derivatives, Hannah L. Buxbaum
Articles by Maurer Faculty
No abstract provided.
Hazardous Hedging: The (Unacknowledged) Risks Of Hedging With Credit Derivatives, Gina-Gail S. Fletcher
Hazardous Hedging: The (Unacknowledged) Risks Of Hedging With Credit Derivatives, Gina-Gail S. Fletcher
Articles by Maurer Faculty
Is hedging with credit derivatives always beneficial? The benefit of hedging with credit derivatives, such as credit default swaps, is presumed by the Dodd-Frank Act, which excludes hedge transactions from much of the new financial regulation. Yet, new, significant risks can arise when credit derivatives are used to manage risks. Hedging, therefore, should be defined not only in relation to whether a transaction offsets risks, but also whether, on balance, the risks that are mitigated, as well as any new risks that arise, are outweighed by the potential benefits.
Firms using credit derivatives to hedge often fail to account for …