Laws, regulations and ethical codes regulate all activity in the financial markets.  These standards are set both by agencies authorized by law and by voluntary institutions set up by the players in the market.


Following are the most important of these regulatory agencies.

  • The Securities & Exchange Commission (SEC)

The SEC regulates the issue and trade of securities.

  • The Federal Reserve

The Federal Reserve monitors the activity of all US banks, and is involved in monitoring the financial markets as well.

  • Self Regulatory Organizations

A number of self regulatory organizations have been established by the players in the market.  The largest of which is the organization of brokers and dealers, which is called, “National Association of Securities Dealers (NASD).”  The NASD defines regulations and monitors the activity of its members.  This organization runs the NASDAQ.