Cybercrime in the Securities Market: Is U.C.C. Article 8 Prepared?

90 N.C. L. Rev. Addendum 132 (2012)

26 Pages Posted: 3 Nov 2011 Last revised: 21 Aug 2015

See all articles by Christina Parajon Skinner

Christina Parajon Skinner

University of Pennsylvania - The Wharton School

Date Written: November 1, 2011

Abstract

The bulk of equities trading occurs electronically; the paper certificate is a thing of the past. However, despite attempts to modernize the commercial law governing investment securities through revisions to Article 8 of the Uniform Commercial Code, it is questionable whether Article 8 remains relevant and effective today. Specifically, the recent rise in cybercrime, and hacking in particular, poses risks to the securities trading system that were likely unanticipated by the drafters (and revisers) of Article 8. In this Article, I explore the cybercrime risk, the property ownership questions that might arise from a hack, and the consequences of judicial misapplication or misunderstanding of Article 8. I propose revisions to Article 8 that would make ownership clearer in the event of a cyber-theft of electronically traded equity securities.

Suggested Citation

Skinner, Christina Parajon, Cybercrime in the Securities Market: Is U.C.C. Article 8 Prepared? (November 1, 2011). 90 N.C. L. Rev. Addendum 132 (2012). Available at SSRN: https://ssrn.com/abstract=1952955 or http://dx.doi.org/10.2139/ssrn.1952955

Christina Parajon Skinner (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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