Quick Glance at SROs in the FEAS Region

Monday, 26 December 2011

Why Study SROs?

Self-regulation is an integral part of the regulatory structure of the securities markets in many countries. The market participants such as broker-dealers, listed firms, futures traders, and others are overseen or regulated, to some degree, by a variety of self-regulatory organizations. It is possible to improve the regulatory system’s efficiency by empowering self-regulatory organizations because of the advantages they offer. In a nutshell, SROs;


• Observe ethical and business standards which go beyond government regulations.

• Have expertise in market operations and practices.

• Respond more quickly and with more flexibility to changing market conditions.

• Build and maintain technological and regulatory infrastructure, funded by regulated persons, not taxpayers.

• Are instrumental in improving the know-how of the public through investor education programs and/or training of market participants.