Emory Corporate Governance and Accountability Review


John Koury


In 2010, the Supreme Court decided Morrison v. National Australia Bank Ltd. addressing the extraterritorial application of the Exchange Act of 1934. In the late 1960s, the Second Circuit developed a set of tests, known as the 'effects' and 'conduct' test, which allowed for extraterritorial enforcement of §10b. In Morrison, the Supreme Court overturned the Second Circuit precedents establishing a new test. This essay looks at the history, current trends, and possible future developments extraterritoriality of securities enforcement. Specifically, John Koury examines whether §78aa(b) of the Dodd-Frank Act could establish jurisdiction similar to the old 'effects' and 'conduct' test. Finally, this piece considers whether subsequent decisions have resurrected a ghost of Leasco's 'conduct' test.