LAW7302

Derivatives Regulation ( 6 points, SCA Band 3, 0.125 EFTSL)

Postgraduate

(LAW)

Leader: Dr Tony Ciro

Offered:
City W 2005 (On-campus)

Synopsis: The unit will address the regulatory issues arising from the evolution of these instruments under existing laws and regulations. The course will provide an overview of the applicable regulatory framework recently enacted by the Financial Services Reform Act 2001 (Cth). Statutory arrangements regulating payment netting schemes, and the laws of restitution have also proven to be of considerable importance to the regulation of derivatives markets, both in Australia and overseas. The course will also examine a number of instruments and products and the regulatory conflicts and problems raised by their development, issue, and sale by financial institutions, and financial intermediaries.

Objectives: The objectives of the proposed unit would enable students to: 1) understand how financial derivatives are regulated in Australia; b) evaluate the economic importance and functions financial derivatives serve to the financial community; c) understand the recent changes introduced into financial markets and products regulation in Australia; d) examine the role of the corporate and securities regulator Australian Securities and Investments Commission (ASIC) as the principal enforcer of financial markets regulation, the role of exchanges ASX Derivatives and Sydney Futures Exchange (SFE), and Australian Prudential Regulatory Authority (APRA) for superannuation funds; e) analyse the challenges confronting legal and regulatory frameworks in regulating innovative financial instruments and markets; f) understand the importance and relationship between derivatives markets with other financial and non-financial markets, and global trade deregulation; g) undertake effective research of dynamic and innovative financial markets and regulation.

Assessment: Take Home Exam - 4,500 words: 60%; Research Assignment - 3,000 words: 40%

Contact Hours: 24 hours

Prerequisites: LAW4171 - Corporations law or equivalent