Teaching

The module seeks to provide students with a comprehensive understanding of how the financial system works based on the various interactions of its constituent elements. It begins with a discussion of the role that law plays in setting up and maintaining the operation of the financial system. It introduces students to the concepts of money from both an economic and legal perspective, explores the time value of money and the assessment of risk through net present value and the valuation of equity and debt securities. We then explore, in both economic and legal terms, some of the key institutions that populate modern finance, starting with central banks and commercial banks and the role they play in creating money, and then moving on to various non-bank financial institutions. We continue with an exploration of financial markets, with a focus on capital markets and money markets, in particular their set-up and functioning, including their legal underpinning. Finally, we offer a granular exploration of key financial products that are vital for modern finance, notably derivatives and repo loans. Overall, students will be equipped with a working knowledge of how the financial system operates, how its key institutions and markets function and how some key financial products are constructed, with a focus on the vital role of law in modern finance throughout. This is essential for anyone who wants to pursue a career in international commercial and financial law; it is also vital for understanding politics in modern democratic societies.

Crypto-assets – representations of value that are attributed and transferred through decentralized networks – come in many shapes and sizes, ranging from ‘simple’ means of exchange (cryptocurrencies) to stablecoins and tokens that represent traditional financial assets (equity and debt securities) or reference other crypto- or fiat assets (as a form of derivative). Similarly, an entire new ecosystem of crypto businesses has emerged. Centralized (custodial) exchanges operate in traditional corporate form, holding and trading crypto-assets on behalf of their clients; traditional financial institutions may invest – and be exposed to – crypto-assets, either directly or indirectly. In the realm of decentralized finance, smart contract-based Decentralized Autonomous Organizations (DAOs) defy easy classification as a form of traditional business entity.

To navigate these fields, lawyers need to understand both the basic operation of the underlying technologies and be able to anticipate the legal and regulatory challenges these technologies pose, and the way current legal regimes deal with them. This module will provide a foundation in blockchain technology and crypto-assets and explore their legal significance. Following an introduction into the DLT and blockchain technology, we will analyze the legal issues that crypto-assets raise in property law, contract law, corporate law and corporate insolvency law, to then focus on financial regulation and the numerous reform efforts in this space. Throughout, the module will be interdisciplinary, focusing on law, technology and economics.

 

Modern business structures are rarely confined to a single jurisdiction. The successful restructuring of a business in financial distress requires the flexible and innovative utilization of corporate law, corporate insolvency law and corporate finance mechanisms offered by a multitude of jurisdictions and based on international instruments. The module seeks to identify and to critically analyze the prevalent patterns in global restructuring practice. Students following the module will obtain a deeper understanding and critical awareness of the mechanisms and techniques utilized in this respect. This is essential for anyone who aspires to work in the corporate, finance or restructuring departments of any major international law firm, or in-house in international financial institutions.

In SS 2024/25 we will be offering the seminar Current Issues in International Commercial and Financial Law.

 

The topics below are available for seminar dissertations (Pruefungs- und Zulassungsseminararbeiten) in SPB 3, 5, 8 and 9:

 

Corporate Law and Corporate Finance

i. Corporate Purpose and the Shareholder/Stakeholder Debate – Much Ado About Nothing?

i. ESG Regulation in a Comparative Context

iii. The Regulation of Green Bonds

 

Corporate Insolvency and Restructuring Law

iv. Directors’ Duties after BHS (Wright & Ors v  Chappell & Ors (Re BHS Group Ltd & Ors (in liquidation)) [2024] EWHC 1417 (Ch))

v.. EU Corporate Insolvency Law – What next?

vi. The Part 26A Restructuring Plan - More attractive than the EU restructuring framework?

 

Banking Law and Financial Regulation

vii. Silicon Valley Bank, Signature Bank and Credit Suisse – Why has the new Bank Resolution Framework failed?

viii. The EU’s CMDI Reform Package – Too Little Too Late?

ix. European Deposit Insurance System – Between Desirability and Political Feasibility

x. PSD3/PSR – The future of EU retail payments

 

New Technologies

xi. The Tokenization of Financial Assets – Legal and Regulatory Issues

xii. Decentralized Finance (DeFi) after MiCAR

xiii. The Digital Euro – A Solution in Search of a Problem?

 

The topics will be allocated on a first-come-first-serve basis. Please register with your preferred topic through moodle. Registration will open on 15 January 2025 at 10am.

 

An initial meeting will take place on 31 January 2025 at 10am. During this initial meeting we will briefly introduce the topics, confirm their allocation, and discuss how to proceed. The actual seminar with presentations will take place on 22 and 23 May 2025. Dissertations and presentations will be in English.