This course addresses both spheres of rulemaking for the financial markets, notably financial law and financial regulation, in one single course. Experience shows that approaching the framework for financial market governance exclusively from either of these worlds leaves us with a highly fragmented picture. Thus, the aim of this summer course is to establish a broad and complete foundation of knowledge of the laws and rules governing the various areas of financial market activity.
The course syllabus is likely to include:
Logic and the players of the financial market
Global regulatory architecture
The nature of banks, deposit taking
Issuance of debt and equity securities
Security interests, quasi-security and financial collateral
Structured finance, securitisation, asset-backed securities
Derivatives and credit default swaps
Master agreements and netting
Public investment funds, hedge funds and sub-categories, private equity
Stock exchanges, clearing and settlement
Prudential regulation, banks’ balance sheets and Basel II and III
Rating agencies, crisis management
The Great Financial Crisis and suitable solutions.
A sound understanding of the legal and regulatory framework requires that we approach each subject in a market context first. This short overview is essential with a view to understanding the permanent interaction between market behaviour and the legislators’ and regulators’ responses to it. Subsequently, its legal underpinnings and the regulatory framework will be analysed, taking into account international rules and developments as well as European legislation.
Since the City of London is one of the globally most important financial markets, England will be taken as anchor-jurisdiction in order to develop patterns of global significance which are addressed by legislators and regulators around the world and in the EU.
World-class LSE teaching
LSE Law has excelled once again in the UK's nationwide assessment of research quality, impact and environment. The Research Excellence Framework results published in December 2014 show that LSE Law is the UK's number one law school for legal research.
The 2015 QS World University faculty rankings for Law also place the LSE in the world's top ten for the subject, making it London's best Law School.
On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s law faculty. LL206 course lecturer, Dr Philipp Paech teaches on a number of our undergraduate and graduate law modules, including Financial Law and Financial Regulation.
Market aspects: S. Valdez, Ph. Molyneux, An Introduction to Global Financial Markets, 7th ed. (6th can also be used, but not older), Palgrave-McMillan 2012, (ca. £29).
Law: P. Wood Law and Practice of International Finance, Sweet and Maxwell 2008, (ca. £40 soft-bound). This book is the first building block of the Basic Reading. Students might consider buying it.
*A more detailed reading list will be supplied prior to the start of the programme
**Course content, faculty and dates may be subject to change without prior notice