Committee Statement 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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Nothing But the Facts Statement: Restricting Stock Buybacks Would Harm Capital Markets

Recent policy proposals put forth by several lawmakers have recommended curtailing public companies’ use of stock buybacks, arguing that the practice has constrained economic growth while unfairly enriching wealthy shareholders and executives. However, these proposals have offered no empirical or theoretical support for their recommendations and we are aware of no such evidence. The Committee […]

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Nothing But the Facts Statement: Common Ownership – Theory Meets Reality

Today the Committee on Capital Markets Regulation submitted to the Federal Trade Commission a Nothing But The Facts (“NBTF”) statement on the evidence that common ownership of firms by investment funds managed by the same asset manager increases anticompetitive behavior by those firms. The study purporting to provide empirical evidence of a relationship between common […]

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Expanding Opportunities for U.S. Investors and Retirees: Private Equity

In recent years, U.S. companies have raised more equity through private offerings available only to institutional and high-net-worth investors than through initial public offerings that are available to the general public. The number of U.S. public companies has also been steadily declining, and private start-up companies are frequently reaching billion-dollar valuations without opening up to […]

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Hal S. Scott, President of the Committee on Capital Markets Regulation, Participates on SEC Roundtable Panel on Market Data and Market Access

On October 25, 2018, Hal S. Scott, President of the Committee on Capital Markets Regulation, participated as a panelist at the Securities and Exchange Commission’s (SEC) Roundtable on Market Data and Market Access. Professor Scott delivered remarks and answered questions on a panel entitled “Overview of Current Landscape for Market Data Products and Market Access […]

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Committee Submits Comment Letter on Proposed Amendments to the Regulations Implementing the Volcker Rule

On October 17, 2018, the Committee submitted a comment letter to the Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Commodity Futures Trading Commission, and Securities and Exchange Commission providing the Committee’s input on the proposed amendments to regulations implementing the Dodd-Frank Act’s Volcker Rule. The Committee’s letter identifies areas […]

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