David S. Mitchell, Robert M. McLaughlin, William J. Breslin, Victoria T. Mazgalev and Scott I. Golden
To provide an overview of the Commodity Futures Trading Commission’s (the “CFTC” or “Commission”) recent amendments to CFTC Rule 1.31, which sets forth recordkeeping requirements…
Abstract
Purpose
To provide an overview of the Commodity Futures Trading Commission’s (the “CFTC” or “Commission”) recent amendments to CFTC Rule 1.31, which sets forth recordkeeping requirements for all records required to be kept pursuant to the Commodity Exchange Act (“CEA”) and Commission regulations.
Design/methodology/approach
This article discusses the significant May 2017 amendments to CFTC Rule 1.31 and the practical impact of these amendments for entities subject to the rule’s requirements.
Findings
The CFTC’s recordkeeping amendments do not impose any new substantive recordkeeping requirements, but modernize and make technology neutral the form and manner in which regulatory records must be kept. By eliminating a number of prescriptive and outdated requirements, the amendments should provide greater flexibility to “records entities” to adopt new technologies in response to evolving technological developments.
Originality/value
Practical guidance from experienced commodities, futures and derivatives lawyers.
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Cary Meer and Lawrence B. Patent
To explain CFTC No-Action Letter 14-126, issued on October 15, 2014 by the Commodity Futures Trading Commission Division of Swap Dealer and Intermediary Oversight, which sets…
Abstract
Purpose
To explain CFTC No-Action Letter 14-126, issued on October 15, 2014 by the Commodity Futures Trading Commission Division of Swap Dealer and Intermediary Oversight, which sets forth a number of conditions with which a commodity pool operator (“CPO”) that delegates its CPO responsibilities (“Delegating CPO”) to a registered CPO (“Designated CPO”) must comply in order to take advantage of no-action relief from the requirement to register as a CPO.
Design/methodology/approach
Explains the modified conditions provided by Letter 14-126, including clarification of the permissible activities in which a Delegating CPO seeking to take advantage of registration no-action relief may engage regarding investment management, solicitation, and management of pool property; lists other criteria carried over from Letter 14-69 of May 12, 2014; provides analysis and discusses limitations of the relief provided by the CFTC No-Action letter.
Findings
The letter makes more liberal several of the conditions set forth in CFTC Letter 14-69 of May 12, 2014, with which many Delegating CPOs could not comply.
Originality/value
Practical guidance from experienced financial services lawyers.
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Kristen A. Gilbert, Robert H. Voelkel and Christie W. Johnson
Research suggests effective immersive simulations that rely on augmented reality enhance teachers’ self-efficacy and skills (Badiee & Kauffman, 2015). However, there is a gap in…
Abstract
Research suggests effective immersive simulations that rely on augmented reality enhance teachers’ self-efficacy and skills (Badiee & Kauffman, 2015). However, there is a gap in the literature as studies have largely ignored their uses in educational leadership programs (Bradley & Kendall, 2015). This study investigated the relationship between application of critical skills within an immersive simulation environment and 26 school or district leaders’ perceptions of self-efficacy in leading a professional learning community (PLC). Two overarching themes materialized from participants: improved general confidence in leading a PLC, and a sense of refined or expanded skills in the context of new approaches to leading PLC. Further studies are needed on the use of immersive simulation as a pedagogical tool and to examine impact for educational leadership practitioners.
Kristen A. Gilbert, Robert H. Voelkel and Christie W. Johnson
Research suggests effective immersive simulations that rely on augmented reality enhance teachers’ self-efficacy and skills (Badiee & Kauffman, 2015). However, there is a gap in…
Abstract
Research suggests effective immersive simulations that rely on augmented reality enhance teachers’ self-efficacy and skills (Badiee & Kauffman, 2015). However, there is a gap in the literature as studies have largely ignored their uses in educational leadership programs (Bradley & Kendall, 2015). This study investigated the relationship between application of critical skills within an immersive simulation environment and 26 school or district leaders’ perceptions of self-efficacy in leading a professional learning community (PLC). Two overarching themes materialized from participants: improved general confidence in leading a PLC, and a sense of refined or expanded skills in the context of new approaches to leading PLC. Further studies are needed on the use of immersive simulation as a pedagogical tool and to examine impact for educational leadership practitioners.
Hannah R. Marston, Linda Shore, Laura Stoops and Robbie S. Turner
Mukesh Bajaj, Sumon C. Mazumdar and Daniel A. McLaughlin
Following the Supreme Court’s 1988 decision in Basic, securities class plaintiffs can invoke the “rebuttable presumption of reliance on public, material misrepresentations…
Abstract
Following the Supreme Court’s 1988 decision in Basic, securities class plaintiffs can invoke the “rebuttable presumption of reliance on public, material misrepresentations regarding securities traded in an efficient market” [the “fraud-on-the-market” doctrine] to prove classwide reliance. Although this requires plaintiffs to prove that the security traded in an informationally efficient market throughout the class period, Basic did not identify what constituted adequate proof of efficiency for reliance purposes.
Market efficiency cannot be presumed without proof because even large publicly traded stocks do not always trade in efficient markets, as documented in the economic literature that has grown significantly since Basic. For instance, during the recent global financial crisis, lack of liquidity limited arbitrage (the mechanism that renders markets efficient) and led to significant price distortions in many asset markets. Yet, lower courts following Basic have frequently granted class certification based on a mechanical review of some factors that are considered intuitive “proxies” of market efficiency (albeit incorrectly, according to recent studies and our own analysis). Such factors have little probative value and their review does not constitute the rigorous analysis demanded by the Supreme Court.
Instead, to invoke fraud-on-the-market, plaintiffs must first establish that the security traded in a weak-form efficient market (absent which a security cannot, as a logical matter, trade in a “semi-strong form” efficient market, the standard required for reliance purposes) using well-accepted tests. Only then do event study results, which are commonly used to demonstrate “cause and effect” (i.e., prove that the security’s price reacted quickly to news – a hallmark of a semi-strong form efficient market), have any merit. Even then, to claim classwide reliance, plaintiffs must prove such cause-and-effect relationship throughout the class period, not simply on selected disclosure dates identified in the complaint as plaintiffs often do.
These issues have policy implications because, once a class is certified, defendants frequently settle to avoid the magnified costs and risks associated with a trial, and the merits of the case (including the proper application of legal presumptions) are rarely examined at a trial.
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Robert J. Kaminski and David W.M. Sorensen
Uses data on 1,550 nonlethal assaults recorded by Baltimore County Police Department. Examines factors that are associated with the likelihood of officer injury after an assault…
Abstract
Uses data on 1,550 nonlethal assaults recorded by Baltimore County Police Department. Examines factors that are associated with the likelihood of officer injury after an assault. Notes that factors affecting the probability of assault do not necessarily correspond with the factors that affect the likelihood of injury. Analyzes a broader spectrum of contributory factors than those addressed by other research. Finds inter alia that greater officer proficiency in unarmed defensive tactics may reduce their assault‐related injuries, since most incidents do not involve arms; that in‐service training should be biased toward less experienced officers who are at greater risk; that officer height is a significant variable; that many officers suffer multiple attacks; that domestic disturbances do not rank higher than other dangers, but that this may reflect the possibility that officers anticipate potential violence and take better precautions before attending the scene.
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The Foreign Corrupt Practices Act (FCPA) of 1977 and its amendment – the Trade and Competitive Act of 1988 – are unique not only in the history of the accounting and auditing…
Abstract
The Foreign Corrupt Practices Act (FCPA) of 1977 and its amendment – the Trade and Competitive Act of 1988 – are unique not only in the history of the accounting and auditing profession, but also in international law. The Acts raised awareness of the need for efficient and adequate internal control systems to prevent illegal acts such as the bribery of foreign officials, political parties and governments to secure or maintain contracts overseas. Its uniqueness is also due to the fact that the USA is the first country to pioneer such a legislation that impacted foreign trade, international law and codes of ethics. The research traces the history of the FCPA before and after its enactment, the role played by the various branches of the United States Government – Congress, Department of Justice, Securities Exchange commission (SEC), Central Intelligence Agency (CIA) and the Internal Revenue Service (IRS); the contributions made by professional associations such as the American Institute of Certified Public Accountants (AICFA), the Institute of Internal Auditors (IIA), the American Bar Association (ABA); and, finally, the role played by various international organizations such as the United Nations (UN), the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and the International Federation of Accountants (IFAC). A cultural, ethical and legalistic background will give a better understanding of the FCPA as wll as the rationale for its controversy.