Super-Regulator: A Comparative Analysis of Securities and Derivatives Regulation in the United States, Great Britain, and Japan

89 Pages Posted: 29 Sep 2002

See all articles by Jerry W. Markham

Jerry W. Markham

Florida International University (FIU) - College of Law

Date Written: September 2002

Abstract

This article describes the development of the competing regulatory bodies for banking, insurance, securities and derivatives. It then focuses on the regulatory roles of the Securities and Exchange Commission ("SEC") and the Commodity Futures Trading Commission ("CFTC"). The competition between those two agencies and its effects are described. After that review, the article examines the roles of the FSA-GB and FSA-Japan. Finally, the article discusses the arguments favoring and disfavoring competitive regulation and tries to discern whether a unified regulatory structure such as that in Japan and England is preferable to the competitive approach of the SEC and CFTC.

The issue of the desirability of a single super regulator over securities and derivatives has been debated since the creation of the CFTC in 1975. There has been little success in achieving any unified regulation. Still, the issue will not recede, and a unified regulator seems to be a sound idea. The model provided by the FSA-GB lends support for such unification while the model presented by the FSA-Japan shows the weaknesses of such an approach. Should America choose a super regulator approach, it must be cautious to avoid an agency that will seek to manage the economy or respond to every financial crisis with intrusive regulation.

Keywords: Finance, Regulation, Comparative Law

Suggested Citation

Markham, Jerry W., Super-Regulator: A Comparative Analysis of Securities and Derivatives Regulation in the United States, Great Britain, and Japan (September 2002). Available at SSRN: https://ssrn.com/abstract=329181 or http://dx.doi.org/10.2139/ssrn.329181

Jerry W. Markham (Contact Author)

Florida International University (FIU) - College of Law ( email )

11200 SW 8th St.
RDB Hall 1097
Miami, FL 33199
United States

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