Dispute Resolution in Transnational Securities Transactions

✍ Scribed by Tiago Andreotti

• Publisher: Hart Publishing
• Year: 2017
• Tongue: English
• Leaves: 273
• Category: Library

✦ Synopsis

This book explores the transnational legal infrastructure for dispute resolution in transnational securities transactions. It discusses the role of law and dispute resolution in securities transactions, the types of disputes arising from them, and the institutional and legal aspects of dispute resolution, both generally and regarding aggregate litigation. It illustrates different dispute resolution systems and aggregate litigation methods, and examines the legal issues of dispute resolution arising from transnational securities transactions. In addition, the book proposes two systems of dispute resolution for transnational securities transactions depending on the type of dispute: collective redress through arbitration and a network of alternative dispute resolution systems.

✦ Table of Contents

Cover
Half Title
Title
Copyright
Acknowledgments
Contents
Table of Cases
Abbreviations
1 Introduction: Transnational Securities Disputes and Legal Pluralism
I. Setting the Scene
II. The Objective of This Book
III. Outline of the Argument
IV. Scope and Limitations
2 States, Law and Dispute Resolution
I. The Development of the Modern State
II. The Modern State, the Rule of Law and the Judiciary
III. The Economic Function of Law on Private Matters and Dispute Resolution
A. Basic Structure: Property and Contract Rights
B. Imperfect Markets and Regulatory Law
C. The Role of Dispute Resolution Mechanisms
IV. States and Transnational Disputes
3 Securities Regulation Theory and the Importance of Private Enforcement
I. Financial Markets
A. The Mechanics of Price Accuracy
B. Consequences of Price Inaccuracy
i. Non-optimal Capital Allocation
ii. Market Liquidity
iii. Corporate Governance Failures
II. Securities Regulation
A. Rationale for Securities Regulation: Disclosure
B. Securities Regulation in the European Union
III. Institutional Aspects of Securities Regulation and the Importance of Private Enforcement
A. The Regulatory Regime—Institutional Aspects
i. The Regulatory Mix for Securities Regulation
ii. Standards for Private Enforcement: the Interplay Between Public Law and Private Law
B. The Importance of Private Enforcement in Securities Regulation
4 The Liability Regime for Securities Disputes
I. Transacting Securities and Disputes
A. Issuing Securities
B. Types of Disputes
C. Transacting Transnationally
II. Legal Framework for Securities Liability—Issuers
A. The United States
i. The Securities Act of 1933
ii. Claims under the Securities and Exchange Act of 1934
B. European Union
i. The European Perspective
ii. Implementation in Domestic Systems: the Case of Spain
iii. Other Liability Regimes
C. Brazil
D. Disclosure Liability Standards: Similar But Not Equal
III. Legal Framework for Securities Liability—Financial Intermediaries
IV. Legal Framework for Securities Liability—Informational Intermediaries
A. Compensation
B. The Liability Regime
V. Concluding Remarks
5 Building a Transnational Securities Dispute Resolution System
I. Problems with Transnational Dispute Resolution of Securities Transactions
II. Dispute Resolution Systems in Transnational Securities Transactions—Institutional Considerations
A. Investor–Issuer
i. Setting the Incentives
ii. Overcoming the Prohibition of Opt-Out Aggregate Litigation
iii. Transnational Aspects
iv. System Design and Rule of Law
v. Implementation Aspects
B. Investor–Financial Intermediary
i. Transnational Aspects
ii. Implementation Aspects
C. Investor–Informational Intermediary
III. Two Systems for Transnational Dispute Resolution of Securities Transactions
A. Aggregate Litigation Through Arbitration
i. Seat of Arbitration and Arbitrability
ii. Arbitration Clauses
Corporate Charter Clause
Informational Intermediary Services Contract Clause
Depositary Agreement Clause
iii. Importance of the Arbitral Institution
iv. Possible Problems Remaining
B. A Network of ADR Systems
IV. Concluding Remarks
6 Institutional Aspects of Dispute Resolution
I. Legal Aspects of the Institutional Framework
A. The Legal Basis of the Dispute Resolution System
i. Direct Jurisdictional Basis
ii. Consent Jurisdictional Basis: Arbitration
The National Legal Framework for Arbitration
The International Framework for Arbitration
iii. Considerations of the Legal Basis of a Dispute Resolution System
B. The Decision Maker’s Independence and Accountability
i. Public Officials
ii. Private Decision Makers
C. The Reasoning and Publicity of Decisions
II. Economic Aspects of the Institutional Framework
A. Costs of Maintaining a Dispute Resolution System
B. Costs of Engaging in a Dispute Resolution Procedure
i. Costs of Access
ii. Costs of Evidence and Representation
III. Implications of the Institutional Framework for a Dispute Resolution System
7 Alternative Models of Dispute Resolution Systems
I. National Models
A. Small Claims Court Model
B. The Financial Ombudsman Service Model
C. Self-Regulation Model
D. Arbitration
i. State-supervised Model
ii. Private Arbitration Model
II. International Models
A. International Courts
B. International Arbitral Institutions
C. The European Cross-Border Mechanism for Financial Disputes: a Network of Dispute Resolution Bodies
III. Implications
A. General Implications
B. EU Implications
8 Aggregate Litigation Design
I. Aggregate Litigation Design: a Framework for Analysis
A. Conflicts in Aggregate Litigation
i. Conflicts Between Plaintiffs and Lawyer
ii. Conflicts Between Group Members
iii. Third-Party Financiers
iv. Conflicts in an Opt-out Procedure
B. Ethical Limitations
C. Preclusion Principles and Limits on Choosing an Opt-in or Opt-out Mechanism
i. The Operation of Preclusion – General Aspects
Mutuality
Identity of Causes of Action
Judgment on the Merits
ii. Types and Scope of Preclusion
iii. Preclusion and Non-Mutual Parties: Possibility of the Opt-out Procedure
United States
General Exceptions in Civil Law: Brazil and Spain
The Operation of Preclusion in Representative Actions: How the Mutuality Requirement is Circumvented in Brazil and Spain
iv. Preclusion in Arbitration: What Law Will Govern Its Operation?
D. Final Considerations on Aggregate Litigation Design
II. Aggregate Dispute Resolution and Securities Disputes
9 Aggregate Litigation Models
I. The American Class Action
A. A Brief History of the Class Action
B. Types of Class Action and Their Prerequisites
C. Class Certification
D. Class Action and Securities Litigation
II. Representative Actions: Brazil and Spain
III. The Dutch Act on Collective Settlement of Mass Damages
IV. The English Group Litigation Order
V. The German Capital Market Model Claims Act
VI. Aggregate Litigation and the European Union
VII. Class Arbitration
A. Historical Development of Class Arbitration
B. Class Action Waivers
C. The Types of Class Arbitration
i. The Hybrid Model
ii. The Provider-created Model
D. Class Arbitration Outside the United States
E. Class Arbitration and the European Union
VIII. Concluding Remarks
10 Transnational Aspects of Dispute Resolution
I. Jurisdiction and Enforcement
A. Jurisdiction
i. The Relationship Between Courts and Parties to the Disputes
ii. The Relationship Between the Forum Court and Other Courts
Integrated Jurisdiction Systems: the EU Example
Unilateral Jurisdiction Systems
B. Recognition and Enforcement of Foreign Judgments
i. Integrated Recognition and Enforcement Systems: the EU Example
ii. Unilateral Recognition Systems
C. An Attempt at a Global Convention on Jurisdiction
D. Arbitration
E. Jurisdiction and Enforcement Aspects of Aggregate Litigation
II. Applicable Law
A. Contract
B. Tort
C. Applicable Law in Arbitration
D. Applicable Law in Aggregate Litigation with Transnational Elements
III. The Public Policy Question
A. Public Policy and Securities Disputes
B. Public Policy and Notice in Aggregate Litigation
C. Public Policy and Arbitrability of Securities Disputes
D. Public Policy and Arbitration Based on Corporate Charters
IV. Implications for Securities Disputes
A. Investor–Issuer Disputes
i. Exchange-based
Foreign Exchange
Depositary Receipt237
ii. Open Market
B. Investor–Financial Intermediary Disputes
i. Investor Acts Towards Financial Intermediary
ii. Financial Intermediary Acts Towards Investor
C. Investor–Informational Intermediary Disputes
V. Concluding Remarks on the Transnational Aspects of Securities Disputes
Bibliography
Index