Question

How have regulation of securities industries changed?

Answer 1

Security industries are regulated through Self regulatory organisations(SRO) which takes public input on issues like corporate govt reforms, disclosure, reporting, ownership, and voting requirements..self regulation traces back it roots fro 1930 security act , this include not only self regulation of exchanges but also brokers and dealers.

FINRA aself regulatory organisation governs rules for security market and every person associated to it.

To govern securities a set of acts were created in 1930

1. Securities act of 1933 which regulates distribution of new securities.
2. Securities exchange act of 1934 which regulates trading securities, brokers and exchanges.
3. Trust indenture act of 1934 regulating debt securities.
4. Investment company act of 1940 which regulates mutual fund.
5. Investment advisers act of 1940 which regulates investment advisers

security market has gone through many changes like.

• Use of electronic communication network (ECN)which gives us best technology usage and simplifies trading its a shift from marketplace trading to online which has given high boost to trading in securities.
• Demutualization of exchange board which helps in tracking securities live telling us nano second changes in there value and also the helps us to judge trading in which is best and also gives full company information.
• We keep the earnings from trading in DEMAT form which is linked to our bank account so there is no risk of default and no discrepancy.
• We can go global and trade in international security.

order execution and improved disclosure by brokers and dealers,

implementation of commodity futures modernization act of 2000 (CFMA)

COMMISSION rule which requires quotations for exchange listed options to be firm

Alternative trading system which establishes book keeping of records and reporting requirements

Day trading

Decimalization and subpenny trading conversion from fractional to decimal pricing of equities and options was successful