Securities Markets: Competition and Multiple Regulators Heighten Concerns about Self-Regulation.

摘要

As competition among markets has increased, so have some market participants concerns about the inherent conflicts of interest that securities self-regulatory organizations (SRO) face in their dual roles as market operators and regulators. One response to increased competition--demutualization, or the conversion of SROs from member-owned organizations to shareholder-owned corporations--has raised questions about potential effects on conflicts of interests, particularly in for-profit entities. Additionally, broker-dealers that are members of the two largest SROs, the National Association of Securities Dealers (NASD) and the New York Stock Exchange (NYSE), have continued to raise questions about the efficiency of SROs rules and examinations. Focusing on the issues market participants have identified, this report describes how the Securities and Exchange Commission (SEC), NASD, and NYSE have been addressing concerns about (1) the impact of increased competition, including demutualization, on the ability of SROs to effectively regulate members with which they compete and (2) possible regulatory inefficiencies associated with broker-dealer membership in multiple SROs.