SEC: U.S. Securities and Exchange Commission

The issue of regulation and control over the activities of dealing centers is very important for traders, because it is thanks to this that a safe investment is ensured. Today, brokerage companies quite often give their clients the opportunity to trade not only in currencies, but also to carry out operations with other assets, such as shares, derivatives etc. Therefore, in the list of regulators of such companies we can find several abbreviations, including SEC, the U.S. Department of Securities Market Supervision.

SEC: U.S. Securities and Exchange Commission

SEC oversight of the securities market and stock exchanges in the United States

  • Full name: Securities and Exchange Commission
  • English title: The United States Securities and Exchange Commission
  • Abbreviated title: SEC
  • Subordinate countries: U.S.
  • Funding: at the expense of the state budget
  • Degree of trust of traders: tall
  • Official website: www.sec.gov

Structure and activities of the SEC

SEC is an agency of the U.S. Federal Board of Governors. It is charged with enforcing the legal framework pertaining to America's securities market, the exchange segment, by brokerage firms. The agency's authority extends not only to companies with a physical office and a specific geographic location, but also to brokers who conduct business on the Internet.

The date of creation of the organization is 1934 as a result of several regulations and the integration of the powers of several small regulators into one overall one - SEC. The foundation of the ministry's work is the "Trade Act . securities" of the same year. The agency's activities are subject only to the jurisdiction of the U.S. government. The main office of the organization is located in Washington, DC. As of 2010, more than 3.7 thousand people worked within the walls of this supervisory body.

SEC Regulatory Policies organization is quite effective and is realized as a result of strict distribution of appropriate powers for each unit:

  • corporate finance;
  • free trade, markets;
  • investment management;
  • application of law;
  • risk, investment strategies, innovation.

To achieve the greatest efficiency of its activities SEC closely cooperates with other supervisory organizations. Among them are FTC, MSRB, NSMIA. and others. Due to the full distribution of responsibilities of each organization, a comprehensive approach in controlling the activities of stock brokers and dealing centers is ensured.

So, it can be noted that SEC is one of the main regulators of exchange operations carried out by companies in the U.S. securities markets. Thanks to the activities of this organization, not only the safety of private investors' capital is ensured, but also the country's legislative base in the context of the financial sector is improved. Traders' confidence to this regulator is particularly high, but fortrader.org reminds you that it is important to check the name of the company with which your service contract is concluded. In order to be able to apply to the SEC, the company must be on the list of organizations controlled by the ministry.

Other Exchange Regulators

Leave a Reply

Back to top button