Committee Submits Comment Letter to SEC Regarding the Proposed Rule Change to Introduce a Liquidity Provider Protection Feature on Cboe EDGA Equities Exchange

On July 17, 2019, the Committee submitted a comment letter to the Securities and Exchange Commission (the “SEC”) regarding a proposed rule change filing by Cboe EDGA Exchange, Inc. (“EDGA” or the “Exchange”) with the SEC. The Exchange’s proposal would implement an asymmetric speed bump (i.e., one that applies an intentional delay to some order […]

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Enhancing the Regulatory Process for International Standard-Setting Bodies

International standard-setting bodies, specifically the Basel Committee on Banking Supervision, the Financial Stability Board, the International Association of Insurance Supervisors, and the International Organization of Securities Commissions, play a critical role in the regulation of the global financial system. These bodies develop regulatory standards on issues ranging from capital requirements for banking institutions to the […]

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Committee Submits Comment Letter to U.S. Banking Regulators Pertaining to Proposals for U.S. Operations of Foreign Banking Organizations

On June 11, 2019, the Committee submitted a comment letter to the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System and Federal Deposit Insurance Corporation on two recent proposals pertaining to foreign banking organizations (“FBOs”): (1) a Federal Reserve (the “Fed”) proposal that seeks to tailor the application […]

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Committee Staff Releases Update on Monetary Sanctions Imposed by U.S. Enforcement Agencies

On May 9, 2019, the Committee staff released an update on the monetary sanctions that U.S. public enforcement agencies with oversight of the U.S. financial system imposed during calendar 2018. This statement is intended to update the staff report released in June 2018, “Rationalizing Enforcement in the U.S. Financial System,” which reviewed the monetary sanctions […]

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Committee Submits Comment Letter to the Financial Stability Oversight Council on Proposed Interpretative Guidance on the Designation Process for Nonbank Financial Companies as Systemically Important

On April 25, 2019, the Committee submitted a comment letter to the Financial Stability Oversight Council (“FSOC”) to provide the Committee’s input on FSOC’s proposed interpretative guidance pertaining to its process for designating nonbank financial companies as systemically important. The Committee has previously commented extensively on the issue of FSOC’s designation of nonbank financial companies. […]

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Committee Report on Blockchain and Securities Clearing and Settlement

Blockchain technology has been touted for its potential to revolutionize many aspects of financial markets, including securities clearing and settlement systems. Stock exchanges in countries including Australia and Switzerland have announced plans to implement blockchain technology in securities trading over the next couple of years, while other jurisdictions (e.g. Singapore and Canada) have also studied […]

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The Financial Times Op-ed: There is no need to curb common shareholding

By HAL S. SCOTT Originally published by the Financial Times on April 1, 2019 US and EU regulators recently held hearings on concerns that overlapping corporate ownership could be harming competition. Some witnesses advocated restricting institutional investors, who own 80 per cent of shares in the largest US companies, from owning more than one group […]

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An analysis of Proposals to Restrict Institutional Ownership

Recent policy proposals by legal scholars would expose institutional investors to potential antitrust liability for owning shares in multiple firms in a concentrated industry. The Committee has analyzed these proposals and their potential market implications. The Committee finds that the proposals rely on over-inclusive and unstable measures to designate industries as concentrated. Moreover, if implemented, […]

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Committee Submits Comment Letter to the Commodity Futures Trading Commission on ICE Futures U.S., Inc.’s Proposed Amendment to its Order Execution Rule

On March 14 2019, the Committee submitted a comment letter to the Commodity Futures Trading Commission (“CFTC”) regarding a rule amendment certification filing by ICE Futures U.S., Inc. (“IFUS”) to amend its order execution rule. IFUS’ proposed rule amendment would allow for what IFUS calls “Passive Order Protection (“POP”) Functionality.” As described by IFUS, POP […]

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Wall Street Journal Op-ed: The SEC’s Misguided Attack on Shareholder Arbitration

By HAL S. SCOTT Originally published by the Wall Street Journal on February 21, 2019. Jay Clayton, chairman of the Securities and Exchange Commission, announced earlier this month that the staff of his agency would allow Johnson & Johnson to block its shareholders from voting on an amendment to its own bylaws. I submitted that […]

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