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13 Cards in this Set
- Front
- Back
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Securities Exchange Commission (SEC)
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Primary regulatry body - developed in the Securities Exchange Act of 1934.
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B/D not in compliance with SEC Rules is subject to:
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-Censure
-Limits on Activities, functions or operations. -Suspension or Registration -Revocation of Registration -Fines |
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SRO's under the SEC's oversight
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1. NASD
2. NYSE 3. MSRB 4. CBOE |
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NASD
(National Association of Securities Dealers) |
Regulates all matters related to investment banking and trading in the OTC Mrkt and member firms. Also regulates investment companies and LP transactions.
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NYSE
(New York Stock Exchange) |
Regulates all matters related to the trading in NYSE-listed securities and member firms.
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MSRB
(Municipal Securities Rulemaking Board) |
Regulates matters related to the underwriting and trading of state & municipal securities. Regulates, but does not have enforcement of its rules.
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CBOE
(Chicago Board Options Exchange) |
Regulates matteres related to trading standardized options and related contracts listed on that exchange.
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NASD Districts
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Divides the US into 11 districts to facilitate its operation. Each district elects a district committee to administer rules.
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NASD Funding
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Funded by assessments of member firms' registered reps and applicants and by annual fees.
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UPC
(Uniform Practice Code) |
Establishes trade practices including:
1. Settlement 2. Good Delivery 3. Ex-Dates 4. Confirmations 5. DK (Don't Know Procedures) when doing biz w/ other member firms. |
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Code of Procedure
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How the NASD hears and handles member violations of the Conduct Rules.
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Code of Arbitration Procedure
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Governs the resolution of disagreements and claims between members, registered reps. and the public.
-Addresses monetary Claims. |
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MRV
(Minor Rule Violation) |
Failure to:
1. Have ads or sales literature approved by a principal before use. 2. maintain a file for ads & sales literature. 3. File ads & sales literature w/ the NASD w/in the required time frame. 4. File timely reports on short positions. 5. Keep books in accordance w/ SEC Rules 6. Submit trading data if requested by the NASD. Fines not to exceed $5K. |
