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Anna Pinedo Market participants are still poring through the final regulations under section 619 of the Dodd-Frank Act, known as the Volcker Rule. The Volcker Rule prohibits a banking entity from engaging in proprietary trading, and from acquiring or retaining an ownership interest in, or sponsoring, a hedge fund or private equity fund. Given the breadth of the activities covered by the Volcker Rule, most financial institutions will be affected. Proprietary trading is defined as engaging as principal for the trading account of the banking entity in the purchase or sale of a financial instrument. Trades are presumed to be for the trading account of a banking entity if the position is held for fewer than sixty days, unless the banking entity can demonstrate otherwise. Certain trading activity is expressly permitted, such as in connection with underwriting activities, market making-related activities, and risk-mitigating hedging activities. However, the conditions for reliance on these exclusions are complex. In order to engage in a permitted activity, a banking entity must maintain an internal compliance programme; the compensation arrangements of personnel involved in the activity must not be designed to reward or to create incentives to engage in prohibited proprietary trading; and the banking entity must be licensed or registered to engage in the permitted activity. Trading in connection with underwriting activities is permitted only if the trading desk's underwriting position is related to a distribution of securities for which the banking entity is acting as underwriter. The prohibition on proprietary trading does not apply to purchases or sales of financial instruments by a banking entity made in connection with that entity's market making-related activities. Subject to numerous conditions, hedging activities that are 'in connection with and related to individual or aggregated positions, contracts or other holdings' and 'designed to reduce the specific risks to the banking entity' that are 'related to such positions, contracts or other holdings' are permitted. In order to distinguish between these permitted activities and impermissible proprietary trading, the rule requires banking entities to establish comprehensive compliance policies, procedures, and rigorous calculations and documentation. Certain activities that occur solely outside of the US are excluded from the scope of the rule. Although it is still too early to assess the full impact of the rule on capital markets activities in the US, it is fair to assume that certain foreign banking entities with limited operations in the country may determine to restructure their US business and pare back the scope of their activities. For US banking entities, it is reasonable to anticipate that more business may be conducted on an agency or riskless principal basis, and that market making in certain more illiquid securities may be negatively affected. Given that non-bank broker-dealers are not subject to the rule, certain activities may shift to these entities. Over time, the effects are likely to be more far-reaching than these observations suggest.

Antonio Felix de Araujo Cintra 2014 has started, and with it a new wave of projections, predictions and, why not use the proper name, guesses for the global economy and markets. In this article I will join the wagon and offer some ideas as to what will happen in Brazil this year. This year promises to be one to ring the changes, in which a late carnival, the FIFA World Cup in June and July, and presidential elections in October (and, depending on the outcome of the first round, again in November) may cause the economy to move at a slow pace.

Carlos Fradique-Mendez Laura Villaveces Hollmann Although the term green shoe came to be known in international markets more than 70 years ago, when the Green Shoe Manufacturing Company first implemented an over-allotment option as a price stabilisation mechanism in a Colombian offer, no such mechanisms have ever been fully implemented until very recently. In May 2013, Colombian cement company Cementos Argos, used a price stabilisation mechanism for the first time in its preferred share offer, which totalled 1.6 billion pesos ($800,000) after transaction managers exercised a green shoe option. The green shoe option was allowed in this transaction by the Colombian regulator in light of the particularities of the structure, including the fact that the offer was structured as a simultaneous offer, and was implemented as a two-tranche process.

Adrian Roseti Initiated in late November 2013 and adopted by the Romanian Parliament on December 17 2013 (to be published upon the President's confirmation), the law regarding the purchase of agricultural lands by non-Romanian EU citizens is setting the ground rules expected for the past seven years, since Romania's accession to EU. Although the purchase of land by non-Romanians is not completely liberalised, the proceedings put in place are clear, swift and friendly for investors.

Republic Act 10607 (RA 10607), a law which amends the Insurance Code of the Philippines (Presidential Decree 612, PD 612), recently took effect.

Ignacio Buil Aldana Alicia Galindo Aragoncillo The Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria (SAREB), also known as Spain's 'bad bank', created in November 2012, has become one of the major players in the distressed market. Since mid-2013, it has sold approximately 9000 assets for €3,500 million and still holds billions of euros of assets, which makes SAREB a very relevant lender of record in many distressed situations in Spain. Despite SAREB's key role in the distressed market, it has been unclear whether it should be deemed a financial entity in the context of a Spanish Scheme (such schemes apply exclusively to financial entities according to Spanish law) and, therefore, whether SAREB should be taken into consideration for majority purposes; and, more importantly, whether SAREB could be crammed-down under a Spanish Scheme. SAREB's activity is supervised by European authorities and by Spanish authorities (such as the Bank of Spain), even if it is not per se a financial entity due to its particular nature and its specific corporate purpose.

A recent judgment has outlined the differences between public and in-house companies when identifying competent courts in relation to directors' liability

As record volumes in European debt capital markets continue into 2014, so too has the availability of funding options increased

MiFID 2. That it sounds like the latest Hollywood blockbuster is apt. For, the long-awaited second installment of Europe's Markets in Financial Instruments Directive will have dramatic consequences for the region's securities market.

A lack of certainty about India's investment environment is a long-standing and near-universal complaint. While the Securities and Exchange Board of India (Sebi) and Reserve Bank of India (RBI) seem to recognise this problem, their actions are missing the point – more rules aren't helping.