FIN-99-039


The Impact of the Rule of Law on the Structure and Function of Securities Markets

September 1999

Larry Alan Bear, Rita Maldonado-Bear

ABSTRACT
The time is long past when either economist or lawyers, on the basis of their own singular disciplinary focus, could fully understand or cope efficiently with either the forms, or effects, of law and regulation on the competitive market system. all markets-law interfaces are interdisciplinary and can be understood best by focusing upon the fundamental underpinnings of both professional systems. The paper attempts to make clear to both academics and managers involved with securities markets, the Constitutional-Rule of Law basis for legal and regulatory activity here- and how quickly such activity can change and produce immediate, profound effects on both markets and participants. The paper focuses on several current and troublesome securities areas, and concludes with an examination of the future and securities markets law and regulation in cyberspace.

Maldonado-Bear: (212) 998-0360 rmaldona@stern.nyu.edu

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