Regulatory Systemic Risk in US Securities Regulation

Law and Financial Markets Review, Vol. 5, No. 3, p. 176

Posted: 14 Mar 2011 Last revised: 24 May 2011

See all articles by Aviv Pichhadze

Aviv Pichhadze

affiliation not provided to SSRN

Date Written: February 5, 2011

Abstract

The concept of regulatory systemic risk – a long-term imbalance, resulting from the misalignment between regulatory initiatives and market realities, that impacts multiple areas of the regulatory framework – is developed in the context of US securities regulation. The discussion offers two theses: one descriptive and the other normative. Descriptively, drawing on institutional approaches to the study of regulation, I show how regulatory systemic risk emerges in the US securities regulatory framework. The issue is examined by looking at s. 971, Proxy Access, of the Dodd-Frank Act. Normatively, the discussion highlights the failure of the Dodd-Frank Act to mitigate regulatory systemic risk.

Keywords: capital markets, corporate governance, Dodd-Frank Act, law and economics, securities regulation, systemic risk, systems theory

JEL Classification: K22, G32, G38

Suggested Citation

Pichhadze, Aviv, Regulatory Systemic Risk in US Securities Regulation (February 5, 2011). Law and Financial Markets Review, Vol. 5, No. 3, p. 176, Available at SSRN: https://ssrn.com/abstract=1784982

Aviv Pichhadze (Contact Author)

affiliation not provided to SSRN

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