Andrew Blake, Robert Robinson, Alex Rovira and Charles Sommers
To alert financial market participants to rules jointly proposed by the US Securities and Exchange Commission (SEC) and US Federal Deposit Insurance Corporation (FDIC) regarding…
Abstract
Purpose
To alert financial market participants to rules jointly proposed by the US Securities and Exchange Commission (SEC) and US Federal Deposit Insurance Corporation (FDIC) regarding orderly liquidation of certain large broker-dealers as mandated in Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank).
Design/methodology/approach
Explains how typical broker-dealer liquidations are generally effected, the alternative of determining a broker-dealer to be a “covered broker-dealer” to be liquidated through an orderly liquidation proceeding under Title II of Dodd-Frank, the appointment of the FDIC as receiver and Securities Investor Protection Corporation (SIPC) as trustee, the requirement for the SIPC to file a protective decree with a federal district court, the possible use of “bridge broker-dealers” to facilitate an orderly liquidation, the FDIC’s procedures for settling claims of customers and other creditors against covered broker-dealers, and additional proposed provisions for administrative expenses and unsecured claims.
Findings
Counterparties of broker-dealers that could be subject to an orderly liquidation proceeding should evaluate the proposal and consider whether, if adopted, the rules would require any changes to credit risk or other internal procedures. Large broker-dealers that could be the subject of such an orderly liquidation proceeding should do the same. Although the formal comment period has closed regarding the proposal, market participants that did not submit comments but who still wish to influence final rule making should still consider submitting written comments to the SEC and FDIC or otherwise advocating before them.
Originality/value
Practical guidance from experienced securities and financial services lawyers.
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Lauren W. Collins, Timothy J. Landrum and Chris A. Sweigart
Despite long-standing evidence that the use of exclusionary discipline practices is both ineffective and even potentially harmful, these policies continue to be used in…
Abstract
Despite long-standing evidence that the use of exclusionary discipline practices is both ineffective and even potentially harmful, these policies continue to be used in educational settings across the country. In this chapter, we discuss the problems associated with exclusionary discipline, with an emphasis on zero tolerance approaches. We begin our discussion with a brief history of the origin of zero tolerance policies, a presentation of data that contradict the effectiveness of such policies, and examples of the continued and egregious application of this exclusionary approach. We discuss problems of disproportionality associated with the use of zero tolerance policies, including how this approach exacerbates learning problems for students with and at risk for disabilities, especially if that risk is related to emotional and behavioral disorders (EBD). We conclude by offering alternatives to a zero tolerance approach in the form of positive and preventative approaches for improving student behavior across various levels of intensity within a tiered system of support framework.
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KEVIN DOWD, DAVID BLAKE and ANDREW CAIRNS
One of the most significant recent developments in the risk measurement and management area has been the emergence of value at risk (VaR). The VaR of a portfolio is the maximum…
Abstract
One of the most significant recent developments in the risk measurement and management area has been the emergence of value at risk (VaR). The VaR of a portfolio is the maximum loss that the portfolio will suffer over a defined time horizon, at a specified level of probability known as the VaR confidence level. The VaR has proven to be a very useful measure of market risk, and is widely used in the securities and derivatives sectors: a good example is the RiskMetrics system developed by J.P. Morgan. VaR measures based on systems such as RiskMetrics' sister, CreditMetrics, have also shown their worth as measures of credit risk, and for dealing with credit‐related derivatives. In addition, VaR can be used to measure cashflow risks and even operational risks. However, these areas are mainly concerned with risks over a relatively short time horizon, and VaR has had a more limited impact so far on the insurance and pensions literatures that are mainly concerned with longer‐term risks.
James Brigagliano, Kevin Campion, David Katz and Andrew Blake
The purpose of this paper is to explain the requirements of SEC Rule 613 under the Securities Exchange Act of 1934, which requires national securities exchanges and FINRA jointly…
Abstract
Purpose
The purpose of this paper is to explain the requirements of SEC Rule 613 under the Securities Exchange Act of 1934, which requires national securities exchanges and FINRA jointly to develop a national market system plan (NMS Plan) that provides for the creation, implementation and maintenance of a consolidated order tracking system (“consolidated order trail” or “CAT”) as well as the creation of a central repository responsible for the receipt, consolidation, and retention of all order and quote information for NMS securities.
Design/methodology/approach
The paper discusses weaknesses of current, multiple order tracking systems; core features of the framework adopted by the SEC to create a CAT, including the creation of a central repository; key considerations for market participants, including data reporting methods and funding the creation, implementation and maintenance of the CAT; timing and phased implementation of the NMS Plan; security and order types covered by the CAT; persons required to report information to the central repository; reportable events and CAT data elements; timing and reporting to the central repository; ownership, governance and operation of the central repository; access to CAT data; parties required to comply with Rule 613e and the NMS Plan; and governance and operation of the NMS Plan.
Findings
Under the requirements of Rule 613, and through the NMS Plan that must be developed by the exchanges and FINRA, the CAT is intended to provide a comprehensive and uniform tracking mechanism for secondary market activity in all NMS securities.
Originality/value
The paper provides guidance by experienced financial services lawyers.
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Andrew B. Blake, Oleg V. Petrenko, Timothy J. Quigley, Aaron D. Hill and Amrit Panda
Strategic management research faces increasing calls concerning our work's relevance, reliability and credibility. Management journals have addressed these concerns by elevating…
Abstract
Strategic management research faces increasing calls concerning our work's relevance, reliability and credibility. Management journals have addressed these concerns by elevating the expectations for scholars during the publication process, such as publishing code, scripts and data. While the authors’ believe these changes are necessary for the field's long-term success, in the short term, there is a high resource cost for researchers (many with temporal constraints) to adjust to these new expectations. In this paper, the authors aim to decrease this cost on Strategic Management researchers in two ways. First, the authors discuss the vision, strengths and step-by-step instructions for the emerging code-sharing instrument – The SMART tool (Standardized Measures that are Accurate, Replicable and Time-saving, available at http://www.smartdatatool.net/) – for Strategic Management research. Second, the authors discuss some essential conditions for the tool's benefits to be fully realized by the field. Together, this paper offers the initial steps for creating a collaborative and open-source ecosystem for code and data in Strategic Management research that can strengthen stakeholder confidence in the field.
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Undeterred by the complexities involved researchers are pushing forward to the ultimate goal: a computer that can fully make sense of what it sees. Stephen McClelland reports.
A discussion and review of the contributions presented at the 11th European Conference on Visual Perception by researchers working in the fields of biological vision and machine…
Abstract
A discussion and review of the contributions presented at the 11th European Conference on Visual Perception by researchers working in the fields of biological vision and machine vision.