Self-Regulation in Financial Markets: Results of an Exploratory Survey

The benefits of and limits to self-regulation in financial markets have attracted a great deal of attention over the past several years. In an effort to bring greater clarity to the debate over the role of self-regulation in financial markets, the International Council of Securities Association carried out a survey of self-regulatory organizations (SROs) in order to examine how self-regulation is actually practiced in today’s financial markets. The objective of the survey was to arrive at a better understanding of the core responsibilities and activities that characterize SROs across national boundaries. Specifically, the survey looked at the sources of SROs’ regulatory authority, their regulatory and other activities, and their relationships with their members and with government regulators.

The Dow Jones Industrial Average, S&P 500 and NASDAQ Composite Indexes rose 16.3%, 13.6%, and 9.5% in 2006, respectively. Both share and dollar volume increased in 2006 on NASDAQ and the NYSE. Total underwriting activity of $3,287.1 billion set another annual record with a 2.4% increase over last year’s record year of $3,210.7 billion. Announced US mergers and acquisitions deals totaled $1.5 trillion in 2006, up 30.7% over 2005.

Credits

Research

• Kyle Brandon
• Charles Bartlett