New Special Study of the Securities Markets
The Program in the Law and Economics of Capital Markets, a joint program of Columbia Law School and Columbia Business School, is undertaking a comprehensive New Special Study of the securities markets intended to significantly inform and enhance the quality of financial market regulatory reform. The last comprehensive special study of the capital markets was conducted more than five decades ago and laid the foundation for years of sound regulation of our financial markets. Over the last three decades, however, U.S. and global securities markets have undergone tremendous change, driven by globalization, advances in information technology, and regulatory choices at the federal and international levels. Modern markets represent a dramatically different environment than the markets of thirty or fifty years ago, and a new comprehensive examination of the securities markets is urgently needed in order to better understand the relationship between the many significant developments in financial market microstructure and effective regulatory reform by U.S. federal and international authorities.
The New Special Study will be conducted in three phases. The Program has commenced the first phase, which involves the commissioning of major papers by eminent legal academics and economists that will function as a roadmap for the implementation of the New Special Study. These papers will define what needs to be known for good policymaking in the coming years, survey the existing literature to see what answers are already known, identify the missing gaps, and frame the studies that are needed to fill these gaps.
These foundational papers were presented and commented upon at a conference held at Columbia Law School on March 23-24, 2017. Conference attendees included the project’s Steering Committee; other leading legal and finance academics interested in the project; representatives of the different regulated entities that are the subject of one or more of the foundational papers; individuals from the SEC, CFTC, and FINRA; and representatives of interested foundations. The first phase of the New Special Study will culminate in the preparation of a book that will gather the foundational papers and the commentary on them together with a synthetic overview of the results.
During the second stage of the New Special Study, the Program, with the aid and direction of the Steering Committee, will create a definitive plan of action for completion of the study, including the development of an outline of the final report and arrangement for the completion of the necessary research.
The third stage of the New Special Study will implement the plan of action, including preparation of the ultimate result of the New Special Study, a comprehensive final report directed at federal financial regulators and the U.S. Congress, which has a target completion date of December 2020. The final report will comprehensively describe and explain the research conducted in connection with the New Special Study and will delineate the implications of that research for sound policy in the securities markets. A primary goal of the New Special Study is for this final report to have as significant and as lasting an influence on future policymaking as the original special study, which set the course of financial market regulation for many years thereafter.
Steering Committee Members
Our Steering Committee Members are:
- Ailsa Roell, Columbia University, School of International and Public Affairs
- Chester Spatt, Carnegie Mellon University, Tepper School of Business
- Christine Parlour, University of California at Berkeley, Haas School of Business
- Donald Langevoort, Georgetown University, Georgetown Law Center
- Emmanuel Derman, Columbia University, The Fu Foundation School of Engineering and Applied Science
- Franklin Allen, Imperial College of London, Imperial College of London Business School
- Hilliary Sale, Washington University in Saint Louis, Washington University in St. Louis School of Law
- James Cox, Duke University, Duke University School of Law
- Joel Hasbrouck, New York University, Stern School of Business
- Joel Seligman, University of Rochester, Office of the President; President and CEO of the University of Rochester
- John C. Coffee Jr., Columbia University, Columbia Law School
- Joseph Grundfest, Stanford University, Stanford Law School
- Larry Sonsini, Wilson Sonsini Goodrich & Rosati, Chairman
- Les Silverman, Cleary Gottlieb Steen & Hamilton LLP, Partner
- Maureen O'Hara, Cornell University, Samuel Curtis Johnson Graduate School of Management
- Reena Aggarwal, Georgetown University, McDonough School of Business
- Rick Ketchum, Formerly FINRA
- Zohar Goshen, Columbia University, Columbia Law School
Former Committee Members: