A General Overview of Financial and Securities Regulations
Ever since the stock market crash of 1929, government regulation of financial transactions and securities exchanges has been common practice. Securities regulations cover all transactions that involve the exchange of financial assets known as securities. Regulating the exchange of securities can be difficult for a number of reasons. First of all, what qualifies as a security varies from one jurisdiction to another. Regulations change as you go from one jurisdiction to another, including from federal to state and even to the local level which can include self-regulating bodies.
Most Americans have at least some involvement in the securities exchanges, particularly in the form of pension investments usually in mutual funds. This means that regulation of the financial services industry and the securities exchange markets is actually important for all of us. In the financial collapse of 2008-2009, it has been found that a lack of regulation and responsible oversight contributed directly to the market crash and the loss of billions of dollars by pension holders who were heavily invested in derivative trading. When you are engaged in financial transactions involving securities, it is a good idea to be aware of these regulations, to ensure that your securities transactions are completely on the up and up.
Securities regulations are implemented as a matter of federal law. It is the SEC or Securities Exchange Commission that is responsible for enforcing and implementing federal securities regulations. The trading of special financial products like futures and derivatives are regulated by the Commodity Futures Trading Commission, which is abbreviated CFTC. All financial services and securities industry professionals are registered with these federal bodies.
A 10-Point Plan for Securities (Without Being Overwhelmed)
Some investors make the case that so much federal oversight is not necessary given the existence of organizations like FINRA and the NASD, that are the securities industry’s self regulating organizations. There are some business observers, like Georgetown Professor and CFTC nominee Chris Brummer, who see recent advances in disruptive technologies as being instrumental in the complication of regulating securities trading. If you are interested in learning more about Professor Chris Brummer and financial and securities regulations, the best thing you can do is look up information about financial regulatory bodies online.
A Quick Overlook of Resources – Your Cheatsheet
A great way to find financial and securities regulations info is to read informative papers written by experts like Professor Brummer. Financial and securities regulations at all levels, including the federal, state and self-regulating organizations, are designed to protect investors from incurring crippling financial losses. To find out more about investing in securities and other financial info, all you have to do is search the Internet for financial and securities regulation information.