Credit-Default-Swaps and the 2008 Financial Crisis: An Inquiry into the Underlying Legal Origins and the European Union’s Regulatory Reforms

After the 2008 financial crisis, the financial innovation product Credit-Default-Swap (CDS) was widely blamed as the main cause of this crisis. CDS is one type of over-the-counter (OTC) traded derivatives. Before the crisis, the trading of CDS was very popular among the financial institutions. But meanwhile, excessive speculative CDSs transactions in a legal environment of scant regulation accumulated huge risks in the financial system. This dissertation is divided into three parts. In Part I, we discussed the primers of the CDSs and its market development, then we analyzed in detail the roles CDSs had played in this crisis based on economic studies. It is advanced that CDSs not just promoted the eruption of the crisis in 2007 but also exacerbated it in 2008. In part II, we asked ourselves what are the legal origins of this crisis in relation with CDSs, as we believe that financial instruments could only function, positive or negative, under certain legal institutional environment. After an in-depth inquiry, we observed that at least three traditional legal doctrines were eroded or circumvented by OTC derivatives. It is argued that the malfunction of these doctrines, on the one hand, facilitated the proliferation of speculative CDSs transactions; on the other hand, eroded the original risk-control legal mechanism. Therefore, the 2008 crisis could escalate rapidly into a global financial tsunami, which was out of control of the regulators. In Part III, we focused on the European Union’s regulatory reform towards the OTC derivatives market. In specific, EU introduced mandatory central counterparty clearing obligation for qualified OTC derivatives, and requires that all OTC derivatives shall be reported to a trade repository. It is observable that EU’s approach in re-regulating the derivatives market is different with the traditional administrative regulation, but aiming at constructing a new market infrastructure for OTC derivatives.

Essays on Innovative Activity and the Protection of Innovations

This dissertation looks at three widely accepted assumptions about how the patent system works: patent documents disclose inventions; this disclosure happens quickly, and patent owners are able to enforce patents. The first chapter estimates the effect of stronger trade secret protection on the number of patented innovations. When firms find it easier to protect business information, there is less need for patent protection, and accordingly less need for the disclosure of technical information that is required by patent law. The novel finding is that when it is easier to keep innovations, there is not only a reduction in the number of patents but also a sizeable reduction in disclosed knowledge per patent. The chapter then shows how this endogeneity of the amount of knowledge per patent can affect the measurement of innovation using patent data. The second chapter develops a game-theoretic model to study how the introduction of fee-shifting in US patent litigation would influence firms’ patenting propensities. When the defeated party to a lawsuit has to bear not only their own cost but also the legal expenditure of the winning party, manufacturing firms in the model unambiguously reduce patenting, with small firms affected the most. For fee-shifting to have the same effect as in Europe, the US legal system would require shifting of a much smaller share of fees. Lessons from European patent litigation may, therefore, have only limited applicability in the US case. The third chapter contains a theoretical analysis of the influence of delayed disclosure of patent applications by the patent office. Such a delay is a feature of most patent systems around the world but has so far not attracted analytical scrutiny. This delay may give firms various kinds of strategic (non-)disclosure incentives when they are competing for more than a single innovation.

Role of xanthophyll and water-water cycles in the protection of photosynthetic apparatus in Arbutus unedo and Arabidopsis thaliana

Photosynthetic organisms have sought out the delicate balance between efficient light harvesting under limited irradiance and regulated energy dissipation under excess irradiance. One of the protective mechanisms is the thermal energy dissipation through the xanthophyll cycle that may transform harmlessly the excitation energy into heat and thereby prevent the formation of damaging active oxygen species (AOS). Violaxanthin deepoxidase (VDE) converts violaxanthin (V) to antheraxanthin (A) and zeaxanthin (Z) defending the photosynthetic apparatus from excess of light. Another important biological pathway is the chloroplast water-water cycle, which is referred to the electrons from water generated in PSII reducing atmospheric O2 to water in PSI. This mechanism is active in the scavenging of AOS, when electron transport is slowed down by the over-reduction of NADPH pool. The control of the VDE gene and the variations of a set of physiological parameters, such as chlorophyll florescence and AOS content, have been investigated in response to excess of light and drought condition using Arabidopsis thaliana and Arbutus unedo.. Pigment analysis showed an unambiguous relationship between xanthophyll de-epoxidation state ((A+Z)/(V+A+Z)) and VDE mRNA amount in not-irrigated plants. Unexpectedly, gene expression is higher during the night when xanthophylls are mostly epoxidated and VDE activity is supposed to be very low than during the day. The importance of the water-water cycle in protecting the chloroplasts from light stress has been examined through Arabidopsis plant with a suppressed expression of the key enzyme of the cycle: the thylakoid-attached copper/zinc superoxide dismutase. The analysis revealed changes in transcript expression during leaf development consistent with a signalling role of AOS in plant defence responses but no difference was found any in photosynthesis efficiency or in AOS concentration after short-term exposure to excess of light. Environmental stresses such as drought may render previously optimal light levels excessive. In these circumstances the intrinsic regulations of photosynthetic electron transport like xanthophyll and water-water cycles might modify metabolism and gene expression in order to deal with increasing AOS.

The EU and Dispute Settlement within the WTO: a strategy for the protection of the Union’s autonomy in the domestic regulation of goods?

Oggetto della ricerca è l’accertamento dell’esistenza, nonché la definizione, della strategia dall’UE in materia di controversie commerciali aventi ad oggetto l’interpretazione e l’applicazione di norme facenti capo agli Accordi OMC in materia di misure sanitarie e di barriere tecniche al commercio. Nella prima parte della tesi, si ricostruiscono gli obbiettivi perseguiti dall’UE in materia di controversie SPS e TBT. In questo contesto, un’importanza di primo piano è attribuita alla difesa dell’autonomia regolamentare dell’Unione. Ad essa si riconduce la prassi UE finalizzata a prevenire il sorgere di controversie sul piano bilaterale attraverso la conclusione di accordi di mutuo riconoscimento, la cui portata ella sottolinea essere tuttavia limitata. L’analisi di cinque controversie sorte in ambito OMC di cui l’Unione è o è stata parte convenuta e che si fondano su presunte o accertate violazioni delle norme facenti capo ai due accordi menzionati consente di classificare gli argomenti giuridici avanzati dall’Unione nel contesto di tali controversie. Nella seconda parte della ricerca, la candidata identifica i mezzi a servizio della strategia UE, in primo luogo, attraverso l’analisi del quadro giuridico relativo alla partecipazione dell’Unione e degli Stati Membri al sistema OMC di risoluzione delle controversie; in secondo luogo, attraverso lo studio, da un lato, dello status delle norme OMC nell’ordinamento UE e, dall’altro, degli effetti delle pronunce dell’Organo di Risoluzione delle Controversie e della questione della responsabilità dell’Unione per violazione del diritto OMC. Sulla base del lavoro di ricerca svolto, si conclude che una strategia dell’UE esiste nella misura in cui l’Unione persegue l’obbiettivo di preservare la propria autonomia regolamentare attraverso, anche se non esclusivamente, gli strumenti afferenti all’ordine giuridico interno analizzati nella seconda parte. La candidata conclude altresì che la riforma del diritto delle relazioni esterne operata dal Trattato di Lisbona può indurre un cambiamento di tale strategia.

New perspectives on A.I. in sentencing. Human decision-making between risk assessment tools and protection of humans rights.

The aim of this thesis is to investigate a field that until a few years ago was foreign to and distant from the penal system. The purpose of this undertaking is to account for the role that technology could plays in the Italian Criminal Law system. More specifically, this thesis attempts to scrutinize a very intricate phase of adjudication. After deciding on the type of an individual's liability, a judge must decide on the severity of the penalty. This type of decision implies a prognostic assessment that looks to the future. It is precisely in this field and in prognostic assessments that, as has already been anticipated in the United, instruments and processes are inserted in the pre-trial but also in the decision-making phase. In this contribution, we attempt to describe the current state of this field, trying, as a matter of method, to select the most relevant or most used tools. Using comparative and qualitative methods, the uses of some of these instruments in the supranational legal system are analyzed. Focusing attention on the Italian system, an attempt was made to investigate the nature of the element of an individual's ‘social dangerousness’ (pericolosità sociale) and capacity to commit offences, types of assessments that are fundamental in our system because they are part of various types of decisions, including the choice of the best sanctioning treatment. It was decided to turn our attention to this latter field because it is believed that the judge does not always have the time, the means and the ability to assess all the elements of a subject and identify the best 'individualizing' treatment in order to fully realize the function of Article 27, paragraph 3 of the Constitution.

Toxoplasma gondii in animals and the environment

Toxoplasma gondii is an obligate intracellular parasite capable of infecting virtually all warm-blooded species, including humans, but cats are the only definitive hosts. Humans or animals acquire T. gondii infection by ingesting food or water contaminated with sporulated oocysts or by ingesting tissue cysts containing bradyzoites. Toxoplasmosis has the highest human incidence among zoonotic parasitic diseases, but it is still considered an underreported zoonosis. The importance of T. gondii primary infection in livestock is related to the ability of the parasite to produce tissue cysts in infected animals, which may represent important sources of infection for humans. Consumption of undercooked mutton and pork are considered important sources of human Toxoplasma gondii. The first aim of this thesis was to develop a rapid and sensitive in- house indirect ELISA for the detection of antibodies against T. gondii in sheep sera. ROC-curve analysis showed high discriminatory power (AUC=0.999) and high sensitivity (99.4%) and specificity (99.8%) of the method. The ELISA was used to test a batch of sheep sera (375) collected in the Forli-Cesena district. The overall prevalence was estimated at 41.9% demonstrating that T. gondii infection is widely distributed in sheep reared in Forli-Cesena district. Since the epidemiological impact of waterborne transmission route of T.gondii to humans is now thought to be more significant than previously believed, the second aim of the thesis was to evaluate PCR based methods for detecting T. gondii DNA in raw and finished drinking water samples collected in Scotland. Samples were tested using a quantitative PCR on 529 bp repetitive elements. Only one raw water sample (0.3%), out of the 358 examined, tested T. gondii positive demonstrating that there is no evidence that tap water is a source of Toxoplasma infection in Scotland.

The United Nations 'quasi-prosecutorial' investigative mechanisms: assessing a new institutional model in the international criminal justice landscape

This work aims to provide a theoretical examination of three recently created bodies of the United Nations mandated to investigate the alleged international crimes committed in Syria (IIIM), Iraq (UNITAD) and Myanmar (IIMM). Established as a compromise solution in the paralysis of international criminal jurisdictions, these essentially overlapping entities have been depicted as a ‘new generation’ of UN investigative mechanisms. While non-judicial in nature, they depart indeed from traditional commissions of inquiry in several respects due to their increased criminal or ‘quasi-prosecutorial’ character. After clarifying their legal basis and different mandating authorities, a comparative institutional analysis is thus carried out in order to ascertain whether these ‘mechanisms’ can be said to effectively represent a new institutional model. Through an in-depth assessment of their mandates, the thesis is also intended to outline both the strengths and the criticalities of these organs. Given their aim to facilitate criminal proceedings by sharing information and case files, it is suggested that more attention shall be paid to the position of the person under investigation. To this end, some proposals are made in order to enhance the mechanisms’ frameworks, especially from the angle of procedural safeguards. As a third aspect, the cooperation with judicial authorities is explored, in order to shed light on the actors involved, the relevant legal instruments and the possible obstacles, in particular from a human rights perspective. Ultimately, drawing from the detected issues, the thesis seeks to identify some lessons learned which could be taken into account in case of creation of new ad hoc investigative mechanisms or of a permanent institution of this kind.

Exploiting the environment for structural health monitoring: Strategies, algorithms, and technologies

A densely built environment is a complex system of infrastructure, nature, and people closely interconnected and interacting. Vehicles, public transport, weather action, and sports activities constitute a manifold set of excitation and degradation sources for civil structures. In this context, operators should consider different factors in a holistic approach for assessing the structural health state. Vibration-based structural health monitoring (SHM) has demonstrated great potential as a decision-supporting tool to schedule maintenance interventions. However, most excitation sources are considered an issue for practical SHM applications since traditional methods are typically based on strict assumptions on input stationarity. Last-generation low-cost sensors present limitations related to a modest sensitivity and high noise floor compared to traditional instrumentation. If these devices are used for SHM in urban scenarios, short vibration recordings collected during high-intensity events and vehicle passage may be the only available datasets with a sufficient signal-to-noise ratio. While researchers have spent efforts to mitigate the effects of short-term phenomena in vibration-based SHM, the ultimate goal of this thesis is to exploit them and obtain valuable information on the structural health state. First, this thesis proposes strategies and algorithms for smart sensors operating individually or in a distributed computing framework to identify damage-sensitive features based on instantaneous modal parameters and influence lines. Ordinary traffic and people activities become essential sources of excitation, while human-powered vehicles, instrumented with smartphones, take the role of roving sensors in crowdsourced monitoring strategies. The technical and computational apparatus is optimized using in-memory computing technologies. Moreover, identifying additional local features can be particularly useful to support the damage assessment of complex structures. Thereby, smart coatings are studied to enable the self-sensing properties of ordinary structural elements. In this context, a machine-learning-aided tomography method is proposed to interpret the data provided by a nanocomposite paint interrogated electrically.

Analytical pyrolysis to study microplastics and other polymers in the environment

Synthetic polymers constitute a wide class of materials which has enhanced the quality of human life, providing comforts and innovations. Anyway, the increasing production and the incorrect waste management, are leading to the occurrence of polymers in the environment, generating concern. To understand the extent of this issue, analytical investigation holds an essential position. Standardised methods have not established yet, and additional studies are required to improve the present knowledge. The main aim of this thesis was to provide comprehensive information about the potential of pyrolysis coupled with gas-chromatography and mass spectrometry (Py-GC-MS) for polymers investigation, from their characterisation to their identification and quantification in complex matrices. Water-soluble (poly(dimethylsiloxanes), PDMS bearing poly(ethylene glycol), PEG, side chains) and water-insoluble polymers (microplastics, MPs, and bioplastics) were studied. The different studies revealed the possibility to identify heterogeneous classes of polymers, fingerprinting the presence of PDMS copolymers and distinguishing chemically different polyurethanes (PURs). The occurrence of secondary reactions in pyrolysis of polymer mixtures was observed as possible drawback. Pyrolysis products indicative of secondary reactions and their reaction mechanisms were identified. Py-GC-MS also revealed its fundamental role for the identification of polymers composing commercial bioplastics items based. The results aided to identify chemicals that have the potential to migrate in sea waters. Investigations of environmental samples demonstrated the capability of Py-GC-MS to provide reliable, reproducible and comparable results about polymers in complex matrices (PEG-PDMS in sewage sludges and PURs and other MPs in road dusts and spider webs). Criticisms were especially found in quantitation, such as the retrieval reference materials, the construction of reliable calibration protocols and the occurrence of bias due to interferences between pyrolysis products. This thesis pursues the greater purpose to develop harmonised and standardised methods for environmental investigations of polymers, that is fundamental to assess the real state of the environment.

Access to climate justice: the main procedural hurdles, and possible solutions, within the italian legal framework and the IBA Model Statute

The thesis deals with standing and justiciability in climate litigation against governments and the private sector. The first part addresses the impacts of climate change on human rights, the major developments in international climate law, and the historical reasons for climate litigation. The second part analyses several cases, divided into categories. It then draws to a comparative conclusion with regard to each category. The third part deals with the Italian legal tradition on standing and justiciability – starting from the historical roots of such rules. The fourth part introduces the ‘Model Statute’ drafted by the International Bar Association, arguing that the 'ratio legis' of this proposal could be implemented in Italy or the EU. The thesis develops arguments, based on the existing legal framework, to help plaintiffs establish standing and justiciability in proceedings pending before Italian courts. It further proposes the idea that 'citizen suits' are consistent with the Italian and EU legal tradition and that the EU could rely on citizen suits to privately enforce its climate law and policies under the ‘European Green Deal.’