BRAVE-NEW-WORLD - THE IMPACT(S) OF THE INTERNET ON MODERN SECURITIES-REGULATION

This Article surveys the impact of the Internet, and the SEC's evolvin g response to it, in four developing areas: (i) the initial public off ering context, (ii) the appearance of alternative trading systems in s econdary markets, (iii) the private placement market, and (iv) extrate rritorial offerings. The focus is on the Internet's likely impact on i ntermediaries and gatekeepers, and this Article concludes that, while the prospect for 'disintermediation' has been overstated, a market str ucture characterized by partial disintermediation could result under w hich broker-dealer firms will increasingly compete with unregulated co mmunication networks. This Article also suggests specific deregulatory steps the SEC should take in recognition of the special status of ele ctronic communications and the awkward fit between such communications and the statutory structure of the federal securities laws. In additi on, this Article examines the increased prospect for fraud on the Inte rnet, and suggests that the traceability of Internet communications ma y become a necessary element of market transparency.