Regulatory Framework of the Securities Industry

Regulatory Framework of the Securities Industry
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The regulatory framework of the securities industry focuses on regulating the trade of marketable securities, at the state and federal level in the U.S. At other times; there are other regulations that affect securities being traded at the New York Stock Exchange. The Securities and Exchange Commission (SEC) is mainly tasked with regulations at the federal level while the Federal Commodity Futures Trading Commission (CFTC) deals with financial instruments like derivatives and futures. The adoption Dodd- Frank Law, has led to calls for the merger of the SEC and the CFTC, but this has only had limited success (Political Transcript Wire, 2013). To highlight on the importance of security regulations framework is increased adoption of International Financial Reporting Standards, to ease the process of regulation in the U.S.
The SEC performs the oversight authority of the financial markets structure, and the organization’s importance came into being following the Great Crash (Demirag & O'Brien
, 2004). Nonetheless, lack of political power has led to the ineffectiveness of the organization over time. The Global ...