Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Sunday, August 31, 2014

This Week in Securities Litigation

SEC Adopts Asset-Backed Securities Reform Rules

The SEC has adopted asset-backed securities reform rules.  The press release in part states the following:

The Securities and Exchange Commission today adopted revisions to rules governing the disclosure, reporting, and offering process for asset-backed securities (ABS) to enhance transparency, better protect investors, and facilitate capital formation in the securitization market.

The new rules, among other things, require loan-level disclosure for certain assets, such as residential and commercial mortgages and automobile loans. The rules also provide more time for investors to review and consider a securitization offering, revise the eligibility criteria for using an expedited offering process known as “shelf offerings,” and make important revisions to reporting requirements.

August 31, 2014 | Permalink | Comments (0) | TrackBack (0)

SEC Announces Pilot Plan to Assess Stock Market Tick Size Impact for Smaller Companies

The SEC has announced a pilot plan to assess stock market tick size impact for smaller companies.  The press release in part states the following:

The Securities and Exchange Commission today announced that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) filed a proposal to establish a national market system plan to implement a targeted 12-month pilot program that will widen minimum quoting and trading increments (tick sizes) for certain stocks with smaller capitalization.  The Commission plans to use the pilot program to assess whether such changes would enhance market quality for smaller capitalization stocks for the benefit of investors and issuers.

August 31, 2014 | Permalink | Comments (0) | TrackBack (0)

SEC Names James Schnurr As Chief Accountant

Details available here.

August 31, 2014 | Permalink | Comments (0) | TrackBack (0)

Exploring Koehler's Scholarship on the FCPA

Mike Koehler of the FCPA Professor Blog has posted a useful and interesting reading list of his scholarship on the Foreign Corrupt Practices Act.  Although this is obvious, he is one of the leading experts on corruption and his scholarship is well worth reading.

August 31, 2014 | Permalink | Comments (0) | TrackBack (0)

Chief Information Officer Thomas Bayer to Leave SEC

Details available here.

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SEC Announces Municipal Advisor Exam Initiative

Details available here.

August 31, 2014 | Permalink | Comments (0) | TrackBack (0)

Monday, August 18, 2014

Chu on Credit Ratings

Chenghuan Sean Chu has posted Empirical Analysis of Credit Ratings Inflation as a Game of Incomplete Information on SSRN with the following abstract:

This paper models competition among credit rating agencies as an auction. Equilibrium ratings give a distorted representation of agencies' true assessment of quality, because the agencies choose their ratings strategically. I quantify the distortion in ratings for individual commercial mortgage-backed securities, and find the extent of distortion to be an important predictor of the securities' ex post performance. I also find that the distortion magnitudes decreased after the recent financial crisis. Through counterfactual simulations, I determine the marginal impact of additional rating agencies on distortions, and I identify the impact of proposed disclosure requirements.

 

August 18, 2014 | Permalink | Comments (0) | TrackBack (0)

Rapp on the Office of Market Intelligence

Geoffrey Christopher Rapp  has posted Intelligence Design: An Analysis of the SEC's New Office of Market Intelligence and its Goal of Using Big Data to Improve Securities Enforcement on SSRN with the following abstract:

This contribution to the University of Cincinnati's spring 2013 symposium on “Addressing the Challenges of Protecting the Public: Enforcement Practices and Policies in the Post-Financial Crisis Era,” discusses the SEC's creation of a new Office of Market Intelligence in January, 2010. OMI was created in the aftermath of the Madoff scandal and charged with using advanced techniques to detect securities fraud and to process tips and complaints, including those arising from the Dodd-Frank whistleblower bounty reward program. While it may be too soon to judge the success of the new Office, useful comparisons to other federal intelligence activities (such as in the national security context) and to the business tool of "Market Intelligence" can be drawn.

August 18, 2014 | Permalink | Comments (0) | TrackBack (0)

NASAA Annual Conference to Focus on Meeting Tomorrow’s Challenges Today

Details available here.

August 18, 2014 | Permalink | Comments (0) | TrackBack (0)