ESF:MPF_RDFT Regulation & Supervision FIMA - Course Information
MPF_RDFT Regulation and Supervision of Financial Markets
Faculty of Economics and AdministrationSpring 2024
- Extent and Intensity
- 0/2/0. 4 credit(s). Type of Completion: zk (examination).
- Teacher(s)
- Mgr. Ing. Filip Hampl, Ph.D., LL.M. (seminar tutor)
prof. Ing. Eva Horvátová, CSc. (seminar tutor) - Guaranteed by
- Mgr. Ing. Filip Hampl, Ph.D., LL.M.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration - Timetable of Seminar Groups
- MPF_RDFT/01: Thu 12:00–13:50 VT204, except Thu 4. 4., F. Hampl, E. Horvátová
- Prerequisites
- The course assumes basic knowledge and skills in the areas of:
- central and commercial banking,
- financial markets and the activities of financial institutions,
- theory of law (systematics of law, the distinction between private and public law) and legal regulation of direct protection of persons in a weaker position on financial markets in the scope of the course Legal Investor Protection,
- work with legal information. - Course Enrolment Limitations
- The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 28 student(s).
Current registration and enrolment status: enrolled: 16/28, only registered: 0/28, only registered with preference (fields directly associated with the programme): 0/28 - fields of study / plans the course is directly associated with
- Finance (programme ESF, N-FIN)
- Finance (programme ESF, N-FU)
- Financial Markets, Institutions and Technologies (programme ESF, N-FIN)
- Course objectives
- The aim of the course is to acquaint students with the reasons (the „why“), bodies (the „who“), and tools (the „how“) of financial markets supervision and aspects of their legal regulation. The course is designed as a combination of theoretical and practical seminars and as such it serves as a comprehensive excursion into the issues of financial regulation, not only in the Czech Republic, the European Union but also in the international context. The course uses historical events in financial markets as a starting point to explore the challenges of regulating financial markets, emphasizing risks to financial systems. It focuses on regulatory tools from two perspectives: (i) public law aspects of financial market supervision as a whole, including current topics such as high frequency trading, virtual assets or FinTech; and (ii) financial stability and the role of macroprudential policy. The course also pays attention to the institutional and functional aspects of the supervisory and regulatory bodies.
- Learning outcomes
- After completing the course, students will be able:
- To formulate reasons, goals, and methods of supervision and regulation of financial markets.
- To understand the legal aspects of supervision and regulation of financial markets and to formulate their quantitative impacts on financial institutions as well as on financial systems.
- To apply the knowledge gained in the field of macroprudential policy in assessing the stability of individual financial systems.
- To orientate in the system of supervisory and regulatory bodies in the Czech Republic, but also in the European Union and internationally.
- To formulate the impact of new trends on the area of regulation and supervision of the financial markets. - Syllabus
- 1. The financial system and its disadvantages as reasons for financial regulation and supervision. Objectives of financial regulation and supervision as a set of means to remedy market failures. Limits to financial regulation and supervision as a way of understanding the practical constraints to which it is subject.
- 2. Risks for the financial system. Systematic risk and its dimensions. A quick guide to Refinitiv. Case study.
- 3. Policies, legal basis and regulatory and supervisory bodies. Models of supervisory arrangements (sectoral, functional and unified supervisory model). Supervisory authorities (European System of Financial Supervision - ESRB, EBA, ESMA, EIOPA; Czech National Bank).
- 4. Macroprudential and microprudential supervision of banks I – maintenance of financial stability. Functions of banks and their vulnerability as a reason for regulation. BCBS and a historical excursion into Basel standards. Capital regulation under Basel III (Pillar 1). Basel III and its Pillar II and Pillar III.
- 5. Macro-prudential and micro-prudential supervision of banks II - Basel III and liquidity requirements (LCR and NSFR). Borrower-based limits LTV, D(S)TI, LTI. Case studies focused on capital adequacy.
- 6. Macroprudential and microprudential supervision of banks III - Case studies focused on capital adequacy and borrower-based limits LTV, D(S)TI, LTI.
- 7. Macroprudential and microprudential supervision of capital market I - overview of obligations imposed on investment firms according to MAR and MiFID, prudential and other requirements imposed on investment firms in the IFR/IFD regime.
- 8. Macroprudential and microprudential supervision of the capital market II - case studies focused on prudential and other requirements imposed on investment firms in the IFR/IFD regime.
- 9. Macroprudential and microprudential supervision on the capital market III – market abuse according to MAR, case studies.
- 10. Macroprudential and microprudential supervision on the capital market IV - regulation of information asymmetry, prospectus regulation and credit rating agencies, case studies.
- 11. Discussion on specific fields and new challenges of financial market regulation and supervision – e.g. banking union, virtual assets, FinTech or P2P lending.
- 12. Lecture and discussion with a financial professional.
- Students of the course Regulation and Supervision of the Financial Markets shall use the web portal pravoesf.econ.muni.cz. They should also pay attention to the study texts in the course Legal Investor Protection, which lists the basic legal institutes, the knowledge of which is assumed to be understood by the participants of the course Regulation and Supervision of the Financial Markets. The course employs the legal information systems ASPI and Refinitiv. Students can access the ASPI in all computer classrooms in the ESF building and also via a remote desktop within the Orion terminal server (connection instructions are available on the econ.muni.cz website). Access to the Refinitiv is possible in the ESF building.
- Literature
- required literature
- ALEXANDER, Kern. Principles of banking regulation. First edition. Cambridge: Cambridge University Press, 2019, xxii, 473. ISBN 9781108427265. info
- MOLONEY, Niamh. EU securities and financial markets regulation. Forth edition. Oxford: Oxford University Press, 2023. Oxford EU law library. 993 s. ISBN 9780192583413. Publikace dostupná jako e-kniha.
- ARMOUR, John, Daniel AWREY, P. L. DAVIES, Luca ENRIQUES, Jeffrey N. GORDON, C. P. MAYER and Jennifer PAYNE. Principles of financial regulation. First edition. Oxford: Oxford University Press, 2016, xxvii, 669. ISBN 9780198786481. info
- Teaching methods
- Seminars, discussions, case studies, self-study of assigned literature.
- Assessment methods
- The course is completed by a written exam. To successfully pass the written exam, it is necessary to obtain at least 60% of the points. The condition for admission to the exam is participation in seminars (max. 2 unexcused absences). In addition, students can obtain bonus points for active participation in seminars during the semester. The number of bonus points available for the students will be determined at the beginning of the semester. The bonus points will be added to the overall evaluation of the course if the written exam would be successfully passed (i.e if students obtained at least 60% of the points).
The following classification scales apply to student evaluation: A: 93 - 100%, B: 92 - 85%, C: 84 - 77%, D: 76 - 69%, E: 68 - 61%, F: less than 61%.
The exact requirements for completing the course also apply to students studying abroad (e.g. Erasmus) with an individual study plan, except for the compulsory attendance (alternative assignment is provided instead). More information on the alternative assignment is given in the interactive syllabus of the course. Students are required to contact the guarantor in the first teaching week of the semester and arrange the deadlines for fulfilling the assignment.
Note: “Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding a grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination." - Language of instruction
- Czech
- Further comments (probably available only in Czech)
- Study Materials
The course is taught annually. - Teacher's information
- Other resources:
- Information sources of the Czech National Bank (https://www.cnb.cz/cs/)
- Information sources of the European Central Bank (https://www.ecb.europa.eu/)
- Information sources of the European financial supervisory authorities: European Securities and Markets Authority (ESMA, https://www.esma.europa.eu/), European Banking Authority (EBA, https: //www.eba. europa.eu/), the European Insurance and Occupational Pensions Authority (EIOPA, https://www.eiopa.europa.eu/), and the European Systemic Risk Board (ESRB, https: //www.esrb.europa. eu /).
- Enrolment Statistics (Spring 2024, recent)
- Permalink: https://is.muni.cz/course/econ/spring2024/MPF_RDFT