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 ?
FINRA's by-laws state that its public governors may have no "material business relationship" with a broker, dealer or other self-regulatory organization.
(24) The Exchange Act [section] 3 states that any entity seeking to operate as a "national securities exchange" must register with the SEC and operate as a self-regulatory organization (SRO).
A self-regulatory organization that helps monitor Canada's trading industry has released two guides to help investment dealers protect themselves and their clients in the event of a cyber attack.
While boosting oversight of advisors via user fees, third-party examiners or a separate self-regulatory organization was dead politically this year, none of those issue has gone away, says Brian Hamburger, CEO of MarketCounsel, and more advisor exams are likely on the horizon.
Firms located in Illinois may not have a problem either, as the state recently amended its social media privacy law to add that "nothing in this subsection shall prohibit or restrict an employer from complying with a duty to monitor or retain employee communications as required under Illinois insurance laws or federal law or by a self-regulatory organization." While these exceptions will help a firm that has employees located in those states, it will not apply to a firm's employees who are residents of other states.
The Financial Planning Coalition welcomed the Investment Adviser Examination and Improvement Act of 2012, while the Bachus self-regulatory organization (SRO) bill got shelved.
Commodity Futures Trading Commission Chairman Gary Gensler says the current regulatory system "failed to protect" customers of Peregrine Financial Group, allowing PFG to willfully deceive the designated self-regulatory organization, the National Futures Association.
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
FSI still supports the creation of a new universal standard of care and an industry-funded self-regulatory organization for investment advisers.
The ATA's Self-Regulatory Organization has received early praise from both the Federal Trade Commission (FTC) and the Federal Communication Commission (FCC) in their public comments regarding the direction of the teleservices channel and its alignment to meet consumer needs...
Mary Schapiro, chairman of the NASD, talked about the self-regulatory organization's plans for insurance regulation in Phoenix at a seminar organized by the Securities Industry and Financial Markets Association, New York.
In essence the PCAOB is treated, in many respects, as if it were a self-regulatory organization under the securities laws.