Self-regulatory organization (SRO)
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
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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.
SRO see FINANCIAL SERVICES ACT 1986.
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See single-room occupancy.
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