Self-regulatory organization

From MarketsWiki
Jump to navigation Jump to search

Straits Financial-370x90.png

In United States securities law, the principal federal regulator, the Securities and Exchange Commission (SEC), delegates authority to the National Association of Securities Dealers (the NASD) and to the national stock exchanges (such as the NYSE) to enforce certain industry standards and requirements related to securities trading and brokerage.

The National Futures Association is the self-regulatory organization for the futures industry. U.S. futures exchanges also have self-regulatory functions.

On July 26, 2007 the SEC approved a merger of the enforcement arms of the NYSE and the NASD, to form a new SRO, the Financial Industry Regulatory Authority. In addition, Congress created the Municipal Securities Rulemaking Board (the MSRB) as an SRO charged with adopting investor protection rules governing broker-dealers and banks that underwrite, trade and sell tax-exempt bonds, 529 college savings plans and other types of municipal securities.