Agency regulate stock market

In the United States, financial markets get general regulatory oversight from two government bodies: Both have similar goals: Neither body has complete authority over the markets, though. Much of the responsibility for proper behavior rests in self-regulatory organizations that brokerage firms join, and to the exchanges themselves.

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Apart from the organizations listed here, exchanges have their own regulatory groups that ensure that their traders comply with exchange rules and rules of other organizations. The exchanges also monitor trading in order to look for patterns that might point to market manipulation or insider trading. The stock and corporate bond markets are the most prominent.

Regulators are active and visible because these markets have a relatively large number of relatively small issuers. Securities and Exchange Commission SEC: The SEC is a government agency that ensures that markets work efficiently.

Financial Industry Regulatory Authority FINRA: FINRA represents and regulates all stock and bond brokerage firms and their employees.

More than 4, firms are members, with , employees registered to sell securities. It also administers background checks and licensing exams, regulates securities trading and monitors how firms comply, and provides information for investors.

Treasury bonds are slightly different from corporate bonds. Derivatives markets have their own regulatory bodies, but they match the format and hierarchy of stock and bond market regulation. The organizations may not be household names, but their functions will seem familiar. Commodity Futures Trading Commission CFTC: The CFTC is a government agency that oversees market activities in agricultural and financial commodities.

It ensures that the markets are liquid and that both parties on an options or futures transaction are able to meet their contractual obligations.

It also provides oversight to the markets by ensuring that the exchanges and self-regulatory organizations have sufficient regulations in place, and that those regulations are enforced. National Futures Association NFA: The NFA regulates 4, firms and has 55, employees who work on the different futures exchanges.

It administers background checks and licensing exams, regulates futures trading and monitors how firms comply, and provides information for investors.

Trading in options on stocks is regulated by the SEC and FINRA, but trading on options on futures is regulated by the CFTC and the NFA. As the lines between derivative products blur, you may find a lot of overlap, and many in the industry predict that the SEC and CFTC will merge at some point.

These markets are not well regulated.

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Unfortunately, this has allowed some firms to misrepresent forex trading to day traders, causing some day traders to get badly burned.

Options and futures on currency: Most currency is traded in the spot ; traders exchange one currency for another at the current exchange rate.

The spot market is not regulated. But many trade currency using options and futures. Options and futures on currency are regulated as derivatives through the CFTC, the NFA, and the relevant futures exchanges.

Who Regulates the Stock Market? | WiseStockBuyer

Banks are responsible for most forex trading, and banks are heavily regulated. This means that the Federal Reserve Banks and the U.

Treasury Department are paying attention to forex markets, looking for evidence of manipulation and money laundering. Toggle navigation Search Submit. Learn Art Center Crafts Education Languages Photography Test Prep.

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