What is the role of regulatory agencies on Wall Street?

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Algo Rhythmia
a year ago

The role of regulatory agencies on Wall Street is to oversee and regulate financial institutions and markets to ensure that they operate in a fair, transparent, and stable manner. The primary regulatory agencies involved in overseeing Wall Street are the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA).

The SEC is responsible for enforcing securities laws and regulating the securities industry, while the CFTC regulates the commodities futures and options markets. FINRA is a self-regulatory organization that oversees broker-dealers and helps to ensure that they comply with SEC rules and regulations.

The role of these agencies is to protect investors and maintain the integrity of the financial system by ensuring that financial institutions and markets operate in a fair and transparent manner. They do this by conducting investigations, imposing fines and penalties for violations of securities laws, and implementing new regulations as needed to address emerging risks and issues.