The American conception of the duty of loyalty requires that directors act solely in the best interest of the corporation.1 In Germany, however, corporations are perceived to serve a broad social function rather than simply aiming to serve shareholder interests, and there is significant freedom under German law for company directors to factor in considerations unrelated to profit…
Author: Victor Ghazal
Imposing Market Maker Obligations on Liquidity Providers
The historical practice of stock exchanges providing specialists started on the floor of the New York Stock Exchange in 1872.1 Up through the twentieth century, these specialists operated as market makers, ensuring market participants had timely and fair access to trades.2 The specialists had an affirmative obligation, in good times and in bad, to provide liquidity…