Business & Corporate
Changes in the Choice-of-Law Rules for Intermediated Securities: The Hague Securities Convention Is Now Live
Lawyers working in the commercial law field are familiar with choice-of-law rules for transactions in intermediated securities provided by Articles 8 and 9 of the UCC. Those rules have now been augmented and partially preempted by the Hague Securities Convention. The Convention, ratified by the United States in December 2016, became effective as a matter of U.S. federal law on April 1, 2017. Fortunately, the Convention’s choice-of-law rules lead in most instances to the same results as under Articles 8 and 9. There are some differences, however, and the Convention applies even to existing transactions.