Skip to main content
Unpublished Paper
THE TAXONOMY OF GLOBAL SECURITIES: IS THE U. S. DEFINITION OF A SECURITY TOO BROAD?
ExpressO (2012)
  • Frederick H. C. Mazando
Abstract

This Article compares the scope of the notoriously broad U.S. federal securities laws definitions of a “security” with its counterparts in four major global financial jurisdictions to illustrate the nature and extent of the disparate global securities definitions that profoundly shape international financial rules and potential areas of harmonizing global securities definitions. The global trade in securities developed and grew exponentially in the last three decades without a securities treaty or effective global securities rules largely because there is no global consensus on what securities are or how best to regulate them. The disparate global securities definitions are sine qua non for the dearth of effective global financial rules. They contributed significantly to the catastrophic financial regulatory failures that precipitated the recent global financial crisis. They also stoked serious disputes between countries over how to handle failed global firms and regulate financial products and institutions that caused the recent financial crisis. Furthermore, they stalled and, eventually, killed global efforts to adopt a global financial treaty or a global financial regulator. International organizations also use or define securities differently depending on the nature and mandate of the organization. Finally, they compel the CFTC and SEC to embarrassingly coordinate and enter into separate bilateral and multilateral futures and securities agreements with the same foreign regulators and global organizations. This Article found the U.S. definition starkly different from, too broad, rigid and obsolete relative to its foreign counterparts, financial market developments and global trends in securities definitions, and it offered a harmonized U.S. definition.

Keywords
  • disparities in securities definitions,
  • global securities definitions,
  • global securities regulations,
  • global financial rules,
  • financial product disputes,
  • global securities harmonization,
  • principle-based rules,
  • rules-based,
  • scope of U.S. definition,
  • securities,
  • Dodd-Frank Act.
Disciplines
Publication Date
April 23, 2012
Citation Information
Frederick H. C. Mazando. "THE TAXONOMY OF GLOBAL SECURITIES: IS THE U. S. DEFINITION OF A SECURITY TOO BROAD?" ExpressO (2012)
Available at: http://works.bepress.com/frederick_mazando/1/