SRO – Self Regulatory Authority

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What is an “SRO”?

NYSE (Photo credit: Wikipedia)

SRO is an abbreviation for Self Regulatory Organization, an organization that is responsible for supervising its own members, usually under the direction or control of a government agency.

In the securities industry,  self-regulatory organization is a statutorily defined term.  The National Association of Securities Dealers (NASD) and the national stock exchanges  are SROs under the Acts, and enforce industry rules, standards and requirements related to the securities markets. In 2007 the enforcement division of the NYSE and the NASD merged to create another SRO, the Financial Industry Regulatory Authority (FINRA). In addition, Congress created the Municipal Securities Rulemaking Board (MSRB) as an SRO charged with adopting investor protection rules governing broker-dealers and banks that underwrite, trade and sell tax-exempt bonds, 529 college savings plans and other types of municipal securities.

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English: The New York Stock Exchange
English: The New York Stock Exchange (Photo credit: Wikipedia)


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