Regulators' & Researchers' Views on Financial

REGULATORS’ & RESEARCHERS’ VIEWS ON FINANCIAL REGULATIONS

January 4-5, 2017 § Chicago, IL

WELCOME to the Policy Research Seminar on Regulators’ and Researchers’ Views on Financial Regulations, co-sponsored by the Institute for Humane Studies (IHS) and the Mercatus Center at George Mason University. You have been invited to this event because we hold your work in high esteem for both its scholarly contributions and for its practical applications to our understanding of a free society. As such, we encourage you to join in what promises to be an active and lively conversation, and to draw from your own research and experiences in doing so.

One of our primary goals for this program is to help facilitate scholarly collaboration among the approximately 45 faculty, graduate students, policy experts, and IHS and Mercatus staff in attendance. I hope you see this as a valuable opportunity to get to know dozens of like-minded scholars with similar research interests. We are hosting several world-class speakers who can share their experience and advice on how to flourish, as they have, in the trenches of academia, and an often-hostile policy world. We have found that some of the best conversations from our seminars occur spontaneously in the hallways and around the dinner tables, so please stick around for all meals and receptions.

Thank you again for joining us. We look forward to meeting each of you individually over the course of the seminar. We hope you benefit as much from this seminar as we benefit from having you in attendance. Please don’t hesitate to let us know if we may do anything to improve your experience.

Best,

Ryan Zinski Seminar Director Institute for Humane Studies Opportunities like this to gather with like-minded, intelligent people are invaluable. It is always a positive experience to feel ideologically and philosophically at home at such events.

Attendee, Economics of Education Policy Research Seminar, Austin, Texas PROGRAM SCHEDULE

WEDNESDAY, JANUARY 4TH

6:30-7:00 | Registration Randolph Foyer

7:00-7:45 | Dinner Randolph 1AB

7:45-8:00 | Welcome & Seminar Introduction Randolph 1AB

®Ryan Zinski, Institute for Humane Studies ®Ben Klutsey, Mercatus Center at George Mason University

8:00-9:00 | Keynote Address Randolph 1AB

®Scott Sumner, Bentley University, Mercatus Center at George Mason University

9:00-11:00 | Reception Randolph Foyer

THURSDAY, JANUARY 5TH

8:00-9:00 | Breakfast Randolph 3

9:00-10:00 | Have the Basel Capital Rules Strengthened the Financial System? Randolph 1AB

®Stephen Miller, Mercatus Center at George Mason University ®William R. Cline, Peterson Institute for International Economics ® Thomas L. Hogan, Manuel H. Johnson Center for Political Economy at Troy University 10:00-10:15 | Coffee Break Randolph 3

10:15-11:15 | Are Derivatives Markets More Resilient After Clearing Mandates, Central Counterparties, and Reporting Rules? Randolph 1AB

® Robert Steigerwald, Federal Reserve Bank of Chicago, ® Craig Pirrong, Global Energy Management Institute at the Bauer College of Business at the University of Houston ® Hester Peirce, Mercatus Center at George Mason University ® Colleen Baker, Independent Consultant

11:15-11:30 | Coffee Break Randolph 3

11:30-12:30 | Algorithmic Trading, The Blockchain, and Other Innovations in Finance Randolph 1AB

®Andrei Kirilenko, The Imperial College of London ®Holly A. Bell, University of Alaska, Anchorage ®William J. Luther, Kenyon College ®Brian Knight, Mercatus Center at George Mason University

12:30-1:15 | Lunch Randolph 3

1:15-2:00 | A Conversation with Commissioner Piwowar and Hester Peirce Randolph 3

®Michael Piwowar, Securities and Exchange Commission ®Hester Peirce, Mercatus Center at George Mason University 2:00-2:15 | Coffee Break Randolph 3

2:15-2:45 | Resolving Large Failing Financial Institutions: Are we there yet? Randolph 1AB

®Emily Kapur, SBCC Group, Inc.

2:45-3:15 | Regulating Latency in Automated Markets Randolph 1AB

®Andrei Kirilenko, The Imperial College of London

3:15-3:30 | Opportunities at IHS Randolph 1AB

® Ryan Zinski, Institute for Humane Studies

3:30-7:15 | Break

7:15-8:00 | Dinner Randolph 3

8:00-9:00 | Governance and Growth: A View from the Boardroom Randolph 3

®Marsh Marshall, Blue Chip Ventures

9:00-11:00 | Reception Randolph Foyer ABOUT

ounded in 1961 by Dr. F.A. “Baldy” Harper, the Institute for Humane Studies is a non-profit edu- Fcational organization that engages with students and professors around the country to encourage the study and advancement of freedom. We support this audience in advancing the principles and practice of freedom in their careers, and connect them to a community of individuals commit- ted to the power of freedom and of ideas. Specifically, we facilitate the impact of professors both on and beyond their campuses – partnering with faculty to run campus programs and connecting scholars to opportunities to further their careers both in and out of the academy.§

IHS STAFF IN ATTENDANCE

JUSTIN DAVIS ASHLEY DONOHUE Faculty Programs Coordinator Faculty Programs Manager

RYAN ZINSKI Events Manager

Learn more, sign up for programs, and check out our many opportunities for faculty and students at www.theIHS.org. he Mercatus Center at George Mason University is the world’s premier university source for market-orient- Ted ideas. A university-based research center, the Mercatus Center advances knowledge about how markets work to improve people’s lives by training graduate students, conducting research, and applying economics to offer solutions to society’s most pressing problems. Our mission is to generate knowledge and understanding of the institutions that affect the freedom to prosper, and to find sustainable solutions that overcome the barriers preventing individuals from living free, prosperous, and peaceful lives. Mercatus researchers conduct research, work with graduate students to apply ideas to problems in the world, and make research findings available to the media and to policymakers to connect academic learning with real-world practice.

For over 30 years, the Mercatus Center at George Mason University has recruited, trained, and supported graduate students who have gone on to pursue careers in academia, government, and public policy as well as support scholars pursuing research on the cutting edge of academia. Programs for Graduate Students include the Adam Smith Fellowship, a co-sponsored program of the Mercatus Center and Liberty Fund, Inc, which is awarded to graduate students attending PhD programs in a variety of fields including economics, philosophy, political science, and sociology, and the Frédéric Bastiat Fellowship, which is awarded to graduate students attending master’s, juris doctoral, and doctoral programs in a variety of fields including economics, law, political science, and public policy. §

To inquire about working with Mercatus to use your academic scholarship to effect policy or to apply for a student program please email Rob Raffety at [email protected]. SPEAKERS

COLLEEN BAKER Dr. Colleen M. Baker is an expert in banking, financial institutions law, regulation, and mediation, with extensive knowledge of the regulation of over-the-counter derivatives, derivatives clearing, the Dodd-Frank Act, and bankruptcy, in addition to being a media- tor. Her research has been published in places such as the Harvard Business Law Review Online, the Notre Dame Law Review, the Arizona Law Review, the Capital Markets Law Journal, the University of Michigan Journal of Law Reform, and the University of Virginia Law & Business Review. Dr. Baker has taught courses at the University of Illinois Urbana-Champaign Business School, the University of Notre Dame Law School, Villanova University Law School, and the Wharton Business School. She has also worked at Allen & Overy LLP, Morgan Stanley, and as a consultant at the Federal Reserve Bank of Chicago and for The Volcker Alliance. Dr. Baker received a JD/MBA from the University of Virginia and a PhD from the Wharton School of the University of Pennsylvania.

HOLLY BELL Holly A. Bell is an Associate Professor at the University of Alaska, Anchorage where she teaches finance and economics. She also works with the Cato Institute and Mercatus Center on issues related to financial market structure, high-frequency trading, and policy. In the financial world, her writings have appeared in notable academic journals as well as The Wall Street Journal, CNBC, American Banker, and Reason Magazine, to name a few. Higher education is her second career. Dr. Bell spent the first 17 years of her professional life in the corporate sector including nine years at FedEx. She holds degrees in economics, business administration, and American foreign policy.

WILLIAM CLINE William R. Cline has been a senior fellow at the Peterson Institute for International Economics since 1981. During 1996–2001 while on leave from the Institute, Dr. Cline was deputy managing director and chief economist of the Institute of International Finance (IIF) in Washington, DC. From 2002 through 2011 he held a joint appointment with the Peterson Institute and the Center for Global Development, where he is currently senior fellow emeritus. Before joining the Peterson Institute, he was senior fellow, the Brookings Institution (1973–81); deputy director of development and trade research, office of the assistant secretary for international affairs, US Treasury Department (1971–73); Ford Foundation visiting professor in Brazil (1970–71); and lecturer and assistant professor of economics at Princeton University (1967–70). He graduated summa cum laude from Princeton University in 1963, and received his MA (1964) and PhD (1969) in economics from Yale University. THOMAS HOGAN Thomas Hogan is Chief Economist for the U.S. Senate Committee on Banking, Housing, & Urban Affairs. He is currently on leave from Troy University where he is Assistant Professor of Finance in the Johnson Center for Political Economy. He earned his Ph.D. in Economics from George Mason University and holds Bachelor’s and Master’s degrees in Business Administration from the University of Texas at Austin. Dr. Hogan wrote his dissertation on money, banking, and finance. He also specializes in international development and Austrian economics. His research interests include commercial banking, financial institutions, and monetary theory. Dr. Hogan was formerly Assistant Professor of Economics at West Texas A&M University. He has worked for Merrill Lynch’s commodity trading group and for investment funds in the U.S. and Europe. He has been a research fellow at the Cato Institute and the American Institute for Economic Research and is a former consultant to the World Bank.

EMILY KAPUR Emily C. Kapur is an attorney and a manager at SBCC Group, Inc., a leading financial advisory and litigation support firm, where she directs strategy and expert-witness testimony for high-profile litigation disputes. Kapur is also completing a PhD at Stanford University’s Department of Economics. Her research in empirical finance and economic history, conducted under the supervision of Professor John Taylor, focuses on new legal and regulatory mechanisms designed to manage big-bank resolution. Her work has been published by Hoover Institution Press and The Wall Street Journal and has been presented before the U.S. Senate Banking Committee. Kapur is active in policy reform as a member of the Resolution Project at the Hoover Institution. This group has developed and promoted the addition of a Chapter 14 to the U.S. Bankruptcy Code, which would resolve big banks through an adjusted bankruptcy proceeding. Previously, Kapur led the Nuclear Security Initiative at the Hewlett Foundation. She received a BA in economics from Stanford in 2008, an MSc in economics in 2011 as a Marshall Scholar at the London School of Economics, and a JD from Stanford Law School in 2015. Ms. Kapur is admitted to the California Bar.

ANDREI KIRILENKO Andrei Kirilenko is the Director of the Centre for Global Finance and Technology and a Professor of Finance at the Imperial College Business School. Prior to joining Imperial in August 2015, he was a Professor of the Practice of Finance at MIT Sloan and Co-Director of the MIT Center for Finance and Policy. Before MIT Sloan, Professor Kirilenko served as Chief Economist of the U.S. Commodity Futures Trading Commission (CFTC) between December 2010 and December 2012. In his capacity as Chief Economist, Kirilenko has been instrumental in using modern analytical tools and methods to improve the Commission’s ability to develop and enforce an effective regulatory regime in automated financial markets. In 2010, Kirilenko was the recipient of the CFTC Chairman’s Award for Excellence (highest honor). Professor Kirilenko’s scholarly work focuses on the intersection of finance, technology and regulation. Kirilenko received his PhD in Economics from the University of Pennsylvania, where he specialized in Finance. BEN KLUTSEY Ben Klutsey is the Program Manager for the Financial Markets Working Group at the Mercatus Center at George Mason University. He returns to the Financial Markets Working Group, where he previously worked as a research fellow. Prior to his return, he worked with the Institute of International Finance, where he focused on financial regulations, particularly related to liquidity risk management and risk governance. He received his MA in International Commerce and Policy from George Mason University and his BA in Government and Philosophy from Lawrence University.

BRIAN KNIGHT Brian Knight is a Senior Research Fellow for the Financial Markets Working Group at the Mercatus Center at George Mason University. Brian most recently worked for the Milken Institute, where he headed up the FinTech and Capital Access programs. He has experience working for a broker-dealer with a focus on the emerging online private-place- ment market and was the co-founder of CrowdCheck, a company providing due-diligence and disclosure services to companies and intermediaries engaged in online private offerings. Brian has also served as an attorney for the federal government. Brian is interested in the interplay between technological, regulatory, and market innovation and how best to improve access to capital for businesses of all sizes. He received his law degree from the University of Virginia and his bachelor’s degree from the College of William and Mary.

WILL LUTHER William J. Luther is an assistant professor of economics at Kenyon College, an adjunct scholar with the Cato Institute’s Center for Monetary and Financial Alternatives, and a fellow with the Atlas Network’s Sound Money Project. He is currently ranked 47th on the Social Science Research Network’s Top 8,000 Economics Authors. Luther’s research focuses primarily on questions of currency acceptance and the role governments play in determining com- monly accepted media of exchange. He has published articles in leading scholarly journals, including Economic Inquiry, Public Choice, and Contemporary Economic Policy. His popular works have appeared in The Economist, Forbes, and U.S. News & World Report. An internationally renowned expert on cryptocurrencies, Luther has been cited by major media outlets, including NPR, VICE News, The Christian Science Monitor, and New Scientist. Luther earned his MA and PhD in Economics at George Mason University and his BA in Economics at Capital University.

MARSH MARSHALL Marsh Marshall is currently a Venture Partner at Blue Chip Venture Company, a fund that has invested over $1 billion in over 500 financing rounds of 170 portfolio companies, with a focus on data analytics and digital marketing. He has also served as a General Partner in a $90 million Rothschild-sponsored venture capital fund; as Board Chairman of a California-based software company; and as acting CEO of several venture-backed companies. He has served as President and Vice President at two New York Stock Exchange-listed companies, and as Chief Oper- ating Officer of a leading big data company serving the top 100 asset management companies on Wall Street. His has served as a Board Director at more than a dozen companies. Dr. Marshall’s career as an economist included serving as a Tutor in Economics at Magdalen College, University of Oxford, where he taught courses on Economic Principles and International Economics. He published a book on China’s economy: Organiza- tions and Economic Growth in Rural China, (London: Macmillan Press and New York: St. Martin’s Press, 1985). He has published articles on China’s economy: “Red and Expert at Tachai: A Sources of Growth Analysis”, World Development, Vol. 7, pp. 423-32; 1979; Op-ed pieces for the Washington Post, “The Rains Came – and Then the Vietnamese”, January 13th, 1979; and the Wall Street Journal “Trends in Asian Trade, Industry and Finance”, The Wall Street Journal (Asia), May 25th, 1977; and articles on venture capital “Climbing Mount Everest” in Telecom and Wireless Venture Capital, (Boston: Aspatore Press, 2005), pp.15-23. Marshall was born and raised in Washington DC, and graduated from Georgetown Preparatory School. He subsequently earned a Bachelor’s degree in pre-med studies and history from Tufts University (magna cum laude), a Master’s degree in development economics from Stanford University, and a doctorate in economics from Oxford University.

STEPHEN MILLER Stephen Matteo Miller is a Senior Research Fellow at the Mercatus Center. He is interested in the origins, effects and resolution of market crashes and financial crises. After graduating from George Mason University with a PhD in economics, Stephen worked as a consultant for several years at the World Bank. He then taught undergraduate and graduate classes in macroeconomics and financial economics, while administering the honours program and later the PhD program, for seven years at Monash University in Melbourne, Australia. Prior to joining Mercatus, Stephen was also a visiting assistant professor at Bryn Mawr College, in Bryn Mawr, PA. He and his wife live in their hometown of Philadelphia, PA.

HESTER PEIRCE Hester Peirce is a Senior Research Fellow at the Mercatus Center at George Mason Univer- sity and director of the Financial Markets Working Group. Her primary research interests relate to the regulation of the financial markets. Before joining Mercatus, Peirce served on Senator Richard Shelby’s staff on the Senate Committee on Banking, Housing, and Urban Affairs. In that position, she worked on financial regulatory reform following the financial crisis of 2008 as well as oversight of the regulatory implementation of the Dodd-Frank Act. Peirce served at the Securities and Exchange Commission as a staff attorney and as counsel to Commissioner Paul S. Atkins. Before that, she clerked for Judge Roger B. Andewelt on the Court of Federal Claims and was an associate at a Washington, DC law firm. She currently serves on the Investor Advisory Committee, which advises the Securities and Exchange Commission. Peirce’s work has been published in such outlets as The Hill and American Banker, and she is a reg- ular contributor to Real Clear Markets. She is the editor of, and a contributor to, the book Dodd-Frank: What It Does and Why It’s Flawed, published by Mercatus in 2012. Hester Peirce earned her BA in economics from Case Western Reserve University and her JD from Yale Law School. CRAIG PIRRONG Dr. Pirrong joined the Bauer College faculty after teaching at the Michigan Business School, the Graduate School of Business of the University of Chicago, the Olin School of Business at Washington University in St. Louis, and Oklahoma State University. He worked in private industry for Lexecon, Inc. and GNP Commodities, and has also done consulting for OM, Warenterminbörse, Deutsche Terminbörse, Eurex, the Winnipeg Commodity Exchange, the New York Mercantile Exchange, the Chicago Board of Trade, the Chicago Stock Exchange, several electric utilities, and the FHLBB. His research focuses on the economics of derivatives markets and risk management. He has a PhD, an MBA, and a BA from the University of Chicago.

MICHAEL PIWOWAR Michael S. Piwowar was appointed by President Barack Obama to the U.S. Securities and Exchange Commission in 2013. Most recently, Dr. Piwowar was the Republican chief economist for the U.S. Senate Committee on Banking, Housing, and Urban Affairs under Senators Mike Crapo and Richard Shelby. He was the lead Republican economist on the four SEC-related titles of the Dodd-Frank Act and the JOBS Act. During the financial crisis and its immediate aftermath, Dr. Piwowar served in a one-year fixed-term position at the White House as a senior economist at the President’s Council of Economic Advisers (CEA) in both the George W. Bush and Barack Obama Administra- tions. While at the CEA, he also served as a staff economist for the Financial Regulatory Reform Working Group of the President’s Economic Recovery Advisory Board (PERAB). Before joining the White House, Dr. Piwowar worked as a Principal at the Securities Litigation and Consulting Group (SLCG). Dr. Piwowar’s first tenure at the SEC was in the Office of Economic Analysis (now called the Division of Economic and Risk Analysis) as a visiting academic scholar on leave from Iowa State University and as a senior financial economist. He published a num- ber of articles in leading academic publications and received several teaching and research awards. Dr. Piwowar received a B.A. in Foreign Service and International Politics from the Pennsylvania State University, an M.B.A. from Georgetown University, and a Ph.D. in Finance from the Pennsylvania State University.

ROBERT STEIGERWALD Robert Steigerwald is a Senior Policy Advisor in the Financial Markets Group at the Fed- eral Reserve Bank of Chicago. Robert began his legal career with Kirkland & Ellis, an international law firm based in Chicago, where he represented clients including the Board of Trade of the City of Chicago. He later served as legal counsel for a clearinghouse for foreign currency transactions and was instrumental in developing CLS Bank, the global multicurrency settle- ment system for FX transactions.Robert joined the Federal Reserve Bank of Chicago in 2000 and is a member of the U.S. Commodity Futures Trading Commission’s Market Risk Advisory Committee. He also has represented the bank in the OTC Derivatives Regulators’ Forum, an international forum for information sharing and regulatory cooperation among central banks, prudential supervisors and securities and markets regulators. SCOTT SUMNER Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University, where he is the director of the Program on Monetary Policy. He is also Professor Emeritus at Bentley University and Research Fellow at the Indepen- dent Institute. In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. Named by Foreign Policy magazine in 2012 as one of the “top 100 global thinkers,” Sumner has published papers in academic journals including the Journal of Political Economy, Economic Inquiry, and the Journal of Money, Credit and Banking. He is author of the popular economics blog The Money Illusion and a contributor to EconLog. His work has appeared in media outlets nationwide and beyond, including the New York Times, Wall Street Journal, BBC, CNBC, The Economist, Financial Times, Politico, The National Interest, and The American. Sumner received his PhD and MA in economics from the University of Chicago and his BA in economics from the University of Wisconsin. STAFF

JUSTIN DAVIS Justin Davis serves as the Faculty Programs Coordinator at IHS, where he hopes to facilitate the advancement of classical liberal ideas by connecting the worlds of academia and policy. He completed his M.A. in Economics at George Mason University in 2016 and previously attained his B.S. in Business Administration from The Citadel in Charleston, South Carolina. His research interests include monetary institutions, entrepreneurship, and institutional development. Justin also served in the United States Army’s Corps of Engineers for three years as the squad leader of a bridge erection team. His army tenure stationed him in Fort Knox, Kentucky and included a deployment to Afghanistan with the 502nd Engineer Company, where he was a part of the first multi-role bridge company in the country. Justin currently lives in Capitol Hill with his wife Sarah, an interior and graphic designer, and their dog Max.

ASHLEY DONOHUE Ashley Donohue is the Faculty Programs Manager at IHS. She oversees the Policy Re- search Seminar program and other programs that are geared towards liberty advancing junior and senior faculty. Outside of her work at IHS, she is finishing her doctoral dissertation on Anti-federalism and the ratification of the U.S. Constitution, and she previously taught U.S. History Discussion Section courses at the University of Houston. She has two Chihuahuas named Jack and Espresso, and enjoys practicing yoga, traveling, and drinking too much coffee.

RYAN ZINSKI Ryan Zinski joined the Institute for Humane Studies in June, 2011, as a Conference Management Assistant. Prior to this development, he had been interning at IHS with the Conference Management team throughout the spring. Before joining IHS, Ryan interned for his Congressman in the 24th Congressional District of New York State, and then worked as a Grant Writer for a non-profit organization. Despite working with an amazing and passionate staff in the Congressional Office, he learned first-hand how difficult it is for federal agencies to address the needs of the public. Fortunately, Ryan was able to contribute to the community further as a Grant Writer, and helped secure private funding for programs that help people with disabilities secure and retain meaningful employment. Ryan earned his BA from Colgate University in 2009 with concentrations in history and biology. His core academic interests include history, politics, political philosophy, and economics. Ryan also enjoys cooking, tinkering with electronics, exercising, being outdoors, and empowering people to live fulfilling and rich lives. CONTACT INFORMATION

Colleen Baker Marsh Marshall Independent Consultant Partner [email protected] Blue Chip Ventures [email protected] Holly Bell Associate Professor of Business Stephen Miller University of Alaska, Anchorage Senior Research Fellow [email protected] Mercatus Center at George Mason University [email protected] William Cline Senior Fellow Hester Peirce Peterson Instutute for International Economics Director of Financial Markets Working Group [email protected] Mercatus Center at George Mason University [email protected] Thomas Hogan Assistant Professor of Finance Craig Pirrong Troy University Professor of Finance and Director of the [email protected] Global Energy Management Institute University of Houston Emily Kapur [email protected] Manager SBCC Group, Inc. Michael Piwowar [email protected] Commissioner Securities and Exchange Commission Andrei Kirilenko [email protected] Professor of Finance Imperial College Business School Robert Steigerwald [email protected] Senior Policy Advisor, Financial Markets Group Federal Reserve Bank of Chicago Ben Klutsey [email protected] Program Manager of Financial Markets Working Group Mercatus Center at George Mason University Scott Sumner [email protected] Professor Emeritus of Economics Bentley University Brian Knight [email protected] Senior Research Fellow Mercatus Center at George Mason University [email protected]

Will Luther Assistant Professor of Economics Kenyon College [email protected] Justin Davis Ashley Donohue Faculty Programs Coordinator Faculty Programs Manager Institute for Humane Studies Institute for Humane Studies [email protected] [email protected]

Ryan Zinski Events Manager, Event Strategy & Management Institute for Humane Studies [email protected]

MAP

Please visit theihs.org for more information on future IHS policy research seminars, and look for us at the upcoming annual meetings of the Public Choice Society and Western Economic Association.

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