Capital Markets, Derivatives, and the Law

Positivity and Preparation

Third Edition

Alan N. Rechtschaffen

Gives the reader a clear and concise understanding of the capital markets and what are generally considered to be complex financial transactions
Builds on speeches from Members of the Board of Governors of the Federal Reserve System, case law, real world examples, and the Federal Reserve Capital Markets Trading Manual, to bring the readers into the world of financial instruments in a straightforward way
Topics are described in the context of attorney participation, regulation, and litigation

New to this Edition:

Takes a look at the political changes that have encouraged reduced regulation and increasing innovation
Advances the descriptions of classic financial forms and developing financial opportunities within the backdrop of today

Capital Markets, Derivatives, and the Law

Positivity and Preparation

Third Edition

Alan N. Rechtschaffen

Description

Dramatic failures in individual markets and institutions sparked a global financial crisis that resulted in political, social, and economic unrest. In the United States, a host of legislative acts have completely reshaped the regulatory landscape.

Capital Markets, Derivatives and the Law: Positivity and Preparation investigates the impact of the financial crisis on capital markets and regulation. With an emphasis on the structure and the workings of financial instruments, it considers market evolution after the crisis and the impact of Central Bank policy. In doing so, it provides the reader with the tools to recognize vulnerabilities in capital market trading activities.

This edition serves as an essential guide to better understand the legal and business considerations of capital market participation. With useful definitions, case law examples, and expert insight into structures, regulation, and litigation strategies, Capital Markets, Derivatives and the Law: Positivity and Preparation offers readers invaluable tools to make prudent, well-informed decisions.

Capital Markets, Derivatives, and the Law

Positivity and Preparation

Third Edition

Alan N. Rechtschaffen

Foreword

Preface

Acknowledgments

Introduction

Chapter 1: The financial crisis: sowing the seeds of new regulation

Chapter 2: Financial instruments in the capital markets

Chapter 3: Using financial instruments

Chapter 4: Securities regulation

Chapter 5: Understanding interest rates and the economy

Chapter 6: Asset valuation

Chapter 7: United states treasury securities

Chapter 8: Debt securities

Chapter 9: Derivatives

Chapter 10: Types of swaps

Chapter 11: Regulation of swaps

Chapter 12: Fiduciary obligation to manage risk

Chapter 13: The History and Powers of the CFTC

Chapter 14: Litigation issues

Chapter 15: Suitability

Chapter 16: Options

Chapter 17: Synthesis and Conclusion

Chapter 18: Fiduciary Obligation to Manage Risk

Chapter 19: Litigation Issues

Chapter 20: Synthesis and Conclusion

Appendix

Index

Capital Markets, Derivatives, and the Law

Positivity and Preparation

Third Edition

Alan N. Rechtschaffen

Author Information

Alan N. Rechtschaffen is a senior member of The Rechtschaffen Group at a top tier financial institution. He has over 20 years' experience in the capital markets. He is an adjunct professor of law at New York University, and has held several public offices.

Capital Markets, Derivatives, and the Law

Positivity and Preparation

Third Edition

Alan N. Rechtschaffen

Reviews and Awards

"Given the importance of clear communication and understanding in the financial markets, it is indeed timely and relevant to have the second edition of Professor Rechtschaffen's book available now. Alan Rechtschaffen is an expert in the capital markets; his insights are extremely valuable. Professor Rechtschaffen has a unique ability to explain enormously complex legal and financial subjects in a clear and concise way. His book encourages the reader to apply the lessons learned during the financial crisis to market opportunities and regulation today. Alan's reasonable approach is a valuable guide to anyone who might have an interest in capital market trading activities." - Ben S. Bernanke

"Capital Markets, Derivatives and the Law: Evolution After Crisis is a remarkable and extremely useful instrument in the hands of professionals to understand the legal and business considerations of derivatives transactions." - Jean Claude Trichet, Former President of the European Central Bank, 2003-2011 (From the Foreword)

"Capital Markets, Derivatives and the Law is a great introduction to the often obscure world of financial instruments. From debt to equity to derivatives, Alan Rechtschaffen provides an accessible explanation of how these instruments work in the real world. Students and practitioners who want to understand these instruments will all benefit from his accessible book." - Donald Marron, Former Member of the President's Council of Economic Advisers, Former Acting Director of the Congressional Budget Office

"Alan Rechtschaffen's book, Capital Markets, Derivatives and the Law, is a fascinating analysis of modern capital markets, drawing on insights from law, economics, political science, history, and sociology. As an educator, attorney, policy adviser, and market participant, Rechtschaffen offers a unique perspective on important questions of public policy. Combining economic and legal scholarship while encouraging discussion of today's headlines, this book is of interest to academics, practitioners, bankers, regulators, and anyone else who wants to understand our complex, rapidly evolving capital markets." - Geoffrey P. Miller Stuyvesant P. Comfort Professor of Law Director, Center for the Study of Central Banks and Financial Institutions

"One of the leading academics and practitioners in the evolving arena of derivative products presents a clear, understandable explanation of these financial instruments and their relevance and impact on capital markets and the global financial crisis. A must read for anyone trying to understand today's business headlines." -Kenneth Raisler, Head of Commodities, Futures and Derivatives Group, Sullivan & Cromwell; Former General Counsel, CFTC Former Member, Working Group of The Group of Thirty Derivatives Project

"Alan Rechtschaffen has written an essential book for lawyers working on matters related to financial markets in the wake of the crisis. Capital Markets, Derivatives and the Law is a one-stop source of knowledge about the financial instruments involved in the crisis and the case law to deal with them. It brings together law and financial markets in a way that adds enormous value in both directions. Lawyers and financial market participants will want to read this book." - Phillip Swagel, Professor, McDonough School of Business, Georgetown University; Former Assistant Secretary, U.S. Treasury

"Capital Markets, Derivatives and the Law is a thoughtful, well-informed, and for the most part clearly written guide to the complexities of Dodd-Frank, of the fiduciary obligation to manage risks, and of the sorts of litigation that arise from the world of regulation and its struggles with the realities of derivatives." - Christopher Faille, Author, The Federal Lawyer