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)

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:

  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 ?
(55.) Letter from Elizabeth King to Brent Fields, supra note 52, at 10; Self-Regulatory Organizations and "Benchmark Orders," Exchange Act Release No.
In essence the PCAOB is treated, in many respects, as if it were a self-regulatory organization under the securities laws.
Self-regulatory organizations have taken steps to regulate IM use, however.
Finally, the banking agencies and the securities self-regulatory organizations have been working together to extend the same professional qualification standards found in the securities industry to bank sales personnel.
Kimmel will coordinate the SECs oversight of the self-regulatory organizations (SROs) creation and implementation of the Consolidated Audit Trail (CAT).
He also highlighted importance of self-regulatory organizations and informed the participants that principles are voluntary in order to encourage market participants for better adoption.
Securities and Exchange Commission, the Pennsylvania Securities Commission and various self-regulatory organizations, including the Financial Industry Regulatory Authority, Inc.
As self-regulatory organizations (SROs), exchanges are responsible for monitoring and enforcing their members' compliance with securities laws and exchange rules.
However, the status of exchanges as self-regulatory organizations "has not changed, even as the exchanges have become active competitors with the broker-dealer members they are charged with regulating," Lazo added.
For example, Gensler said, the commission does not examine any of the futures commission merchants itself and instead is 100 percent reliant on self-regulatory organizations to oversee them.
A concluding section lists trade association codes of ethics, standards, and guidelines for particular types of advertising, along with information on self-regulatory organizations.
* The SEC issued a proposal to amend its requirements relating to rule changes requested by self-regulatory organizations (SROs), such as the securities and commodities exchanges (www.sec.gov/rules/proposed/34-49505.htm).