General concepts in law and introduction to banking law

Objective

This course aims to increase students' awareness of the legal environment specific to banks and the financial markets:

• by familiarising them with the institutional framework, regulations governing actors and the legal qualification of the transactions and services provided;
• by studying the legal framework of savings, with a particular focus on public advice to save, financial canvassing and portfolio management;
• by examining the market process and how it is secured;
• finally, by looking at the legal treatment of counterparty risk in over-the-counter transactions.

Planning

1. Introduction to the law of the financial markets- History of the stock exchange. The evolution of securities law.
2. The legal framework of savings- Regulation of public advice to save and banking and financial canvassing. Regulation of portfolio management.
3. Actors in the financial markets- The actors: intermediaries (investment service providers and clearing houses), market infrastructure and regulators. Services provided: investment services and associated services.
4. The market process- Different categories of financial markets. Stages in the process: trading, netting and settlement/delivery. Securing the market process
5. Dealing with counterparty risk in over-the-counter transactions- The transactions concerned. Close-out netting and use of collateral.

References

Bonneau, T., et F. Drummond (2005), Droit des Marchés Financiers, Economica, 2e éd.
De Vauplane, H., et J.-P. Bornet (2001), Droit des Marchés Financiers, Litec, 3e éd.