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 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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