Maloney Act

Maloney Act

1938 legislation amending the Securities Exchange Act that regulates the OTC market.

Maloney Act

United States legislation passed in 1938 that allowed self-regulatory organizations to assist the SEC in some financial regulation. That is, the Maloney Act encouraged what was essentially a public-private partnership between the federal government and the financial industry. Currently, only FINRA is registered as such an organization under the Maloney Act.

Maloney Act

A 1935 act that provides for the self-regulation of security brokers and dealers in the over-the-counter market. The only organization currently registered under the Act is the National Association of Securities Dealers, with approximately 5,000 members. As an incentive to join, members receive discounts on securities traded among themselves.
References in periodicals archive ?
gap was closed in 1938 with the passage of the Maloney Act, (10) which
the regulatory void in 1938 by enacting the Maloney Act.
Shortly atter the passage of the Maloney Act, the SEC authorized
Created in 1938 by the Maloney Act amendments to the Securities Exchange Act of 1934, the NASD has been the securities industry's primary self-regulator for over 57 years.