self-regulatory organization

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Self-regulatory organization (SRO)

Organizations that enforce fair, ethical, and efficient practices in the securities and commodity futures industries, including all national securities and commodities exchanges and the NASD.

Self-Regulatory Organization

A professional organization, unaffiliated with a government, having certain, limited regulatory authority over members. An example is the American Dental Association, which has the ability to set standards and enforce discipline over dentists in the United States. In trading, most exchanges are self-regulatory organizations, as are trading-related professional organizations. SROs assist the SEC and government regulators in the maintenance of operating standards and the arbitration of disputes. See also: SICA.

self-regulatory organization (SRO)

A member-operated organization that establishes and enforces minimum standards and rules of conduct. The National Association of Securities Dealers, the National Futures Association, and the New York Stock Exchange are examples of self-regulatory organizations.

Self-regulatory organization (SRO).

All securities and commodities exchanges in the United States are self-regulatory organizations (SROs), as is NASD.

These bodies establish the standards under which their members conduct business, monitor the way that business is conducted, and enforce their own rules.

For example, the New York Stock Exchange (NYSE) requires that client orders delivered to the floor of the exchange be filled before orders that originate with traders on the floor, who buy and sell for their own accounts.

Self-Regulatory Organization (SRO)


self-regulatory organization (SRO)

a body established under the FINANCIAL SERVICES ACT 1986 to regulate, in part, the UK financial securities and investment industry

There were originally five SROs:

  1. TSA: The Securities Association, which regulated firms dealing in corporate and government securities that were members of the STOCK EXCHANGE and International Securities Regulatory Organization.
  2. AFBD: the Association of Futures Brokers and Dealers, which covered firms operating in financial and commodity futures options;
  3. IMRO: the Investment Management Regulatory Organization, which regulated firms involved in the management and trusteeship of collective investment schemes and PENSION FUNDS;
  4. LAUTRO: the Life Assurance and Unit Trust Regulatory Organization. See INSURANCE COMPANY, UNIT TRUST;
  5. FIMBRA: the Financial Intermediaries, Managers and Brokers Regulatory Association, which regulated firms dealing directly with the general public in such matters as the taking out of life assurance policies and unit trust investment.

In 1991 the TSA and ABRD merged to form the Securities and Futures Authority (SFA), and in 1994 LAUTRO and FIMBRA merged to form the Personal Investment Authority (PIA). In 1999 the three remaining self-regulatory organizations (SFA, PIA and IMRO) were absorbed by the newly established Financial Services Authority (FSA), thus bringing all aspects of the regulation of the securities and investment industry under ‘one roof.

References in periodicals archive ?
The Committee may consider later whether to address the role of the states and self-regulating organizations ("SROs"), internal agency organization or global coordination.
10 contemplates that responsibility for supervising and regulating the insurance company, securities firm, and insured bank would, as under current law, rest respectively with the relevant state insurance authorities, with the Securities and Exchange Commission and the securities self-regulating organizations, and with the appropriate state and federal bank supervisory agencies.
DigiLIBE enables legal and compliance policies based on federal, state, and local guidelines, self-regulating organizations, international standards organizations, and SEC, SOX, BASEL-II, HIPAA, FDIC, IRS, etc.
NARC sets the policies and procedures for the National Advertising Division of the Council of Better Business Bureaus and other self-regulating organizations.
The report examines efforts by various market regulators and self-regulating organizations (SROs) to spur on their constituents to reduce the risks associated with the 100-km question; the existing technology that allows firms to mitigate the risks associated with geographic centralization; human factors that need to be addressed when developing a risk mitigation strategy that will alleviate the concerns associated with geographic centralization; and what various market players in New York, California, London, Paris, Singapore and other major financial centers are doing to mitigate their risk.
Other provisions cover issues of client confidentiality, advertising, using professional designations, continuing education and compliance with regulations and principals from other government agencies and self-regulating organizations.