The Economic Consequences of Regulatory Protection & Extraterritorial Reach

This paper analyzes recent legal and regulatory developments in the EU that will potentially significantly affect the landscape of the financial services industry in the EU and elsewhere. It focuses on four specific initiatives -- delegation, common ownership, MiFID II, and EMIR -- evaluates these developments in the context of an overarching economic framework that highlights the consequences of these initiatives from the standpoint of its effect on consumer welfare in the EU, in the U.S., and globally.