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Howell E. Jackson, Andreas M. Fleckner & Mark Gurevich, Foreign Trading Screens in the United States, 1 Cap. Markets L.J. 54 (2006).

Abstract: Remote trading screens allow investors to trade on exchanges located in other jurisdictions. The Securities and Exchange Commission (‘SEC’) has generally prohibited the placement of foreign trading screens in the United States unless the associated exchange complies with US regulatory requirements. While the SEC defends its position as an essential investor protection, European officials complain that SEC requirements constitute an unfair barrier to trade. This article argues that technological advances have largely mooted this contro-versy. Current requirements do not protect US investors as much as the SEC claims nor do they inhibit competition as much as the SEC's critics assert. To the extent that alternative trading mechanisms already give US investors de facto access to unregulated foreign exchanges, the SEC may well choose to revisit its position on foreign trading screens, particularly as US and European financial markets become more integrated and disclosure requirements on both sides of the Atlantic converge over the next few years.