- Passing of property — Effects of trade practices — Relationship of trade practices with other rules — Contract formation and trade practices — Interpretation and trade practices
This chapter examines securities trading. Although securities are classed as choses of action, they have long been subject to special statutory schemes. In particular, the transfer of shares has long been subject to a registration requirement that importantly supplements the general law of assignment. The requirement for registration arose as a matter of historical necessity. Meanwhile, the modern statutory scheme relating to securities transfers was necessitated by the explosion of financial trading activity following the deregulation of the UK markets, or Big Bang, in the late 1980s. Almost all modern securities transactions are effected by means of electronic exchanges, which have replaced the open-outcry floor-based systems that operated in the past. The chapter then looks at the characteristics of these exchanges, the regulatory framework in which they operate, and the clearing houses on which they depend.