Tuesday, April 28, 2009

regulation of security markets (3)

Federal securities legislation relies heavily on the principle of self-regulation. The SEC has delegated to exchange its power to control trading practices for listed securities, while retaining, however, the power to alter or supplement any resulting rules or regulations. The commission is power to control trading in over-the-counter securities Dealers (NASD), a private association of brokers and dealers in OTC securities. IN practice the SEC staff usually discusses proposed changes with both the NASD and the exchanges in advance, and few rules are formally altered or rejected by the commission.
AN important piece of legislation that makes security markets markets in the United states different from those in many other countries is the (Glass-steagall) Banking Act of 1933, which separates commercial banking from investment banking. While exceptions are granted, and affiliated firms owned by bank holding companies are subject to fewer restrictions, Because of this act banks have not played as prominent a role in security markets in the united states as elsewhere.

No comments: