Question

Securities firms are subject to several forms of regulation. The SEC establishes general guidelines for trading on securities exchanges. The SEC does not have criminal enforcement authority. The SEC enforces financial disclosure laws and insures that investors have access to financial information. Regulation of trading activities is governed by the trading exchanges. Securities firms have been subject to very limited regulation in the use of their firms. Discuss whether securities firms should be more closely regulated.

250 words

Answer 1

There are lots of Financial regulations needed to be followed by Securities firm.

The Securities and Exchange Commission is at the Center of federal financial regulations. It maintains the standards that regulate the stock markets. It reviews corporate filing requirements. It oversees the Securities Investor Protection Corporation. It insures customers' investment accounts in case a brokerage company goes bankrupt.

The SEC also regulates investment management companies, including mutual funds. It reviews documents submitted under the Sarbanes-Oxley Act of 2002. Most important, the SEC investigates and prosecutes violations of securities laws and regulations.

The Commodity Futures Trading Commission regulates the commodities futures and swaps markets. Commodities include food, oil, and gold. The most common swaps are interest rate swaps. The unregulated use of credit default swaps helped cause the 2008 financial crisis.

The Federal Housing Finance Agency was established by the Housing and Economic Recovery Act of 2008. It supervises the secondary mortgage market. It oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.