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Self-regulatory organization (SRO)
self-regulatory organization (SRO)
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)see FINANCIAL SERVICES ACT 1986.
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:
- 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.
- AFBD: the Association of Futures Brokers and Dealers, which covered firms operating in financial and commodity futures options;
- IMRO: the Investment Management Regulatory Organization, which regulated firms involved in the management and trusteeship of collective investment schemes and PENSION FUNDS;
- LAUTRO: the Life Assurance and Unit Trust Regulatory Organization. See INSURANCE COMPANY, UNIT TRUST;
- 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.