A General Overview of Financial and Securities Regulations

  

Ever since the stock market crash of 1929, government regulation of financial transactions and securities exchanges has been common practice. The regulations in question govern all transactions in which financial assets known as securities are exchanged. The regulation of securities can be difficult for all kinds of reasons. Mainly this is due to the fact that the definition of what a security actually is, or what financial assets qualify as securities, varies according to the jurisdiction. Regulations change as you go from one jurisdiction to another, including from federal to state and even to the local level which can include self-regulating bodies.

The fact is that most people are at least somewhat invested in securities, especially given the fact that most pension portfolios involve mutual funds. What this means is that the regulations that the government and independent bodies place on financial and securities should be important to all of us. In the financial collapse of 2008-2009, it has been found that a lack of regulation and responsible oversight contributed directly to the market crash and the loss of billions of dollars by pension holders who were heavily invested in derivative trading. When you are engaged in financial transactions involving securities, it is a good idea to be aware of these regulations, to ensure that your securities transactions are completely on the up and up.

In most cases securities regulations are matters of federal law. The federal organization that implements and enforces federal securities regulations is the Securities Exchange Commission. But other more specialized financial trading, like futures trading and derivative trading, are regulated by the Commodity Futures Trading Commission, or CFTC. All brokers, dealers, brokerage firms and professionals in the securities exchange industry are registered with the SEC. To understand more about finance and security regulations, visit https://en.wikipedia.org/wiki/Security_(finance) .

There are many investors and securities industry professionals who believe that federal regulation is excessive given the fact that there are state regulatory bodies and self regulating organizations like FINRA and NASD. There are some business observers, like Georgetown Professor and CFTC nominee Chris Brummer , who see recent advances in disruptive technologies as being instrumental in the complication of regulating securities trading. Those who are interested in finding out more about financial and securities regulations should begin by taking a minute to search the Internet for information about financial regulatory organizations.

One of the best ways to learn more about financial and securities regulations is to read informative papers and articles about these topics, written by experts in the field like Professor Brummer . Financial and securities regulations at all levels, including the federal, state and self-regulating organizations, are designed to protect investors from incurring crippling financial losses. To find out more about investing in securities and other financial info, all you have to do is search the Internet for financial and securities regulation information.