Intermediated Securities: The European Perspective

JH Binder and P Saguato (eds), The Law and Regulation of Financial Market Infrastructure: A Trans-Atlantic Perspective on Securities and Derivatives Markets (OUP, 2020)

Posted: 16 Jul 2020

See all articles by Louise Gullifer

Louise Gullifer

University of Cambridge - Faculty of Law

Jennifer Payne

University of Oxford - Faculty of Law

Date Written: April 20, 2020

Abstract

The growth of intermediation in the holding of securities creates challenges for jurisdictions as often the body of law dealing with transferable securities continues to operate on the basis of the direct holding paradigm, and therefore fails to take full account of the changes that intermediation brings with it. Jurisdictions need to work out how best to recognise the advantages of intermediation and yet to deal with the problems that arise. This can be done at national level or at supra-national level, with the EU providing a valuable opportunity to tackle some issues. The thesis of the chapter is that there are advantages and disadvantages in holding securities through the intermediated chain, as compared to direct holding. We suggest that, for most market participants, the advantages outweigh the disadvantages. Moreover, some of the disadvantages can be overcome by legal, regulatory or market changes (at least in the UK and in Europe) which could tip the balance even further in favour of the advantages over the disadvantages.

Keywords: Intermediated securities; transferable securities; EU law

JEL Classification: K22

Suggested Citation

Gullifer, Louise and Payne, Jennifer, Intermediated Securities: The European Perspective (April 20, 2020). JH Binder and P Saguato (eds), The Law and Regulation of Financial Market Infrastructure: A Trans-Atlantic Perspective on Securities and Derivatives Markets (OUP, 2020) , Available at SSRN: https://ssrn.com/abstract=3580801

Louise Gullifer

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

HOME PAGE: http://https://www.law.cam.ac.uk/people/academic/l-gullifer/78501

Jennifer Payne (Contact Author)

University of Oxford - Faculty of Law ( email )

Oxford
United Kingdom

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