Self-Regulation in the Financial Markets: Exchange Issues, Market Structure, and Investor Protections (Part 3) by David Merkel, CFA of AlephBlog
US System of Self-Regulation through SROs: Strengths and Areas for Reform
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- What are the most substantial/significant contributions of the current SRO system in the United States?
- What areas present the greatest need for reform?
- How can the private versus “state actor” functions of non-exchange SROs be reconciled?
Chief Counsel, Division of Trading and Markets
US Securities and Exchange Commission
Trading markets division oversees oversees rules, rule changes, etc. Promulgate rules, exposes to the public. Dodd-Frank gives strict deadlines now, which if exceeded leads to proceedings, which now means further time to evaluate, decide, and additional public exposure.
Municipal Securities Rulemaking Board (MSRB)
Created in 1975 to deal with egregious conduct. Regulates the muni market. Writes rules and others enforce. SEC regulates on anti-fraud. Protect muni issuers since Dodd-Frank. Provides data to other regulators.
Daniel J. Roth
President and CEO
National Futures Association
SRO deals with Futures & Swaps — interacts with the CFTC. NFA is to CFTC as FINRA is to the SEC regarding crafting of regulations.
Moderated by: Cheryl L. Evans, CFA Institute