PRIME: The Global Financial Court of Justice?
The call for a global financial court seem to have received a first legitimate answer, with a proposal for such court in The Hague: PRIME Finance (Panel of Recognized International Market Experts in Finance).
The tribunal will aim to resolve the increasing number of intricate global financial disputes – particularly those resulting from complex financial products such as derivatives.
It will focus on disputes between financial institutions such as banks, insurance firms and pension funds but could also consider disputes between institutions, such as clearing houses and exchanges and their customers or institutions and regulators.
Maybe a footnote in the news now, but like the international criminal court of justice in The Hague, clearly global justice on financial matters is quickly maturing to a next level of sophisticated control and order.
Jeff Golden, one of the founders of the ISDA and now U.S. special counsel at Allen & Overy. Golden is a deal lawyer’s deal lawyer, but as an expert witness he has had plenty of opportunity to witness dysfunctional national courts. In December 2007, in The Hague, he issued a clarion call to reform global financial disputes, addressing the inaugural meeting of the World Legal Forum (WLF), a think tank on international business law launched by the Dutch government and legal community.
While first considered as hard to achieve. However with huge cases as Madoff, higher bets within the derivatives market and increasingly larger global trade through any loophole they could find, just as hard needed, thus possible.
Place: The Hague. Why? Meanwhile Dutch institutions and government are backing the idea (pdf), allthough encouraging the private sector as much as possible to arrange most things themselves. With further backing of UN organisations also with more global legitimacy.