INTERNATIONAL FINANCIAL REGULATION

The course is a core educational activity in the Master's Degree in Economics and Finance.
The course is part of the Jean Monnet Chair in Digitalisation in EU Financial Studies (EUDIFIN).
The EUDIFIN Chair contributes to the political and scholarly debate revolving around the challenges the European Union faces to make a proper use of financial innovation to further market integration and risk sharing in the internal financial market (both key objectives of the drive to build the Capital Markets Union). The Chair aims to integrate such cutting-edge developments into three courses: “International Financial regulation”, “Banking and Financial Markets Law”, and “FinTech Law and Financial Innovation” (36 hours each = 30h “foundational” lectures + 6h “in focus” lectures).
The three courses hence branch out three trajectories, which are projected at: i) studying the revolutionary changes in the structure of financial markets and how they relate to the general framework and the principles that govern EU financial law and supervision (institutional trajectory); ii) deepening the studies relating to the regulatory objectives of EU financial law, supervisory and regulatory powers and financial integration. It will do so by dealing with the EU market integration legislative initiatives vis-à-vis the break-throughs in data processing and sharing technology (substantive trajectory); and iii) addressing the increasing labour market demand for professional expertise in the ambit of advanced data analytics and cloud computing and their application to financial markets and financial products (methodological trajectory).
The course International Financial Regulation aims to provide students with the knowledge to understand the “institutional” dimension of digitalisation in EU banking and financial law.
The course draws on the rules set by the global regulatory committees (Financial Stability Board, Basel, etc.) and on European post-crisis regulation, with a few digressions and comparisons with the American regulatory debate.
The essential purpose of the course is, first, to explore rationales to regulate and supervise financial markets and to understand how the regulatory and supervisory architecture in Europe changed over time. Second, this course addresses six policy areas in more detail that are being affected by digitalisation and financial innovation. These areas are: 1. Economic and Financial Integration in Europe, 2. EMU (Economic and Monetary Union), 3. Monetary Policy and Monetary Law, 4. The ESFS and the ESAs, 5. The EBU and its three pillars (SSM, SRM, EDIS), 6. The CMU.

1. Knowledge and understanding
1.1 Knowledge of the legal framework relating to international and European financial law
1.2 Knowledge and analysis of the law-making process at the EU and International level.
1.3 Knowledge of the main market failures relating to banking and finance
1.4 Knowledge and analysis of the main regulatory strategies applied to banking and finance.

2. Applied skills of knowledge and understanding
2.1 Ability to understand the criticisms and issues of banking and financial law.
2.2 knowledge and understanding of the interaction between European and international developments and economic public law and can take into consideration the international and societal context of economic public law in analysing this legal area.
2.3 Ability to understand how the regulatory bodies function (BIS; FSB; EBA; …)

3. Evaluation
3.1 Understanding of the text of the law.
3.2 Ability to appraise complex circumstances and their legal consequences.
3.3 Capability of balancing the different interests concerning banking and financial law.

4. Communication skills
4.1 Ability to express using the legal terms properly.
4.2 Critical and dialogical interaction with the examiners during the examination.

The course builds upon business law.
A good knowledge of the fundamentals of EU Law is also required.

1. The reasons and goal behind the regulation of financial markets.
2. The International Standard Bodies: FSB. BIS, IOSCO, Basel Committee
3. European Union Law and Financial Regulation: Sources and Developments.
4. “Credit Institutions” under European Banking Law: definition, perimeter and access to their activity. Supervision of credit institutions in the EU.
5. Crisis management and resolution
6. Markets in Financial Instruments Directive: key elements.
7. Classification of clients and the Conduct of Business Regime.
8. Product governance and product intervention
9. Trading Venues
10. Collective investment Schemes (I)
11. Collective investment Schemes (II)
12. Raising capitals in the EU: prospectuses and IPOs.
13. Market Abuse (I): insider trading
14. Market Abuse (II): Market Manipulation.
15. DLT and tokens as part of the Capital Markets regime MiCAR, DORA and DLT

Reference material for the course will be made available on the platform.
A valuable text is:
European Financial Regulation
Levelling the Cross-Sectoral Playing Field
Veerle Colaert (Anthology Editor), Danny Busch (Anthology Editor), Thomas Incalza (Anthology Editor), 2021

The assessment method consists in a written exam made by multiple choice questions (20) and an open question based on the contents of the seminars.

Lectures and seminars

English

written