LAW7727 - Hedge Funds and Financial Instrument Regulation

LAW7727 - Hedge Funds and Financial Instrument Regulation

Course Number: 

7727

Type: 

Seminar

Credits: 

3

Prerequisite(s):

none

The recent financial crisis demonstrates the need to understand how the multi-trillion dollar derivatives market is regulated. The derivatives market comprises a wide array of regulated and unregulated financial instruments, including exchange traded futures and options, equity derivatives, interest rate derivatives, foreign currency derivatives, commodity derivatives and credit derivatives (e.g., credit default swaps that contributed to the crisis). The course will review the U.S. securities and commodities laws applicable to exchange traded derivatives and the exclusions and exemptions from those laws that created the largely unregulated over-the-counter derivatives market. Consideration will be given to the Commodity Exchange Act ("CEA"), the Commodity Futures Modernization Act of 2000 ("CFMA"), the Securities Act of 1933, the jurisdiction of the Commodity Futures Trading Commission and the Securities and Exchange Commission, and the classification and treatment of different types of derivatives under these laws. We will review how derivatives contributed to the financial crisis and the evolving political and legislative landscape for derivatives regulation. In addition, we will examine the legal documentation used for over-the-counter derivatives and selected bankruptcy issues affecting derivatives transactions.