U.S. Securities and Exchange Commission (SEC) - the main regulator of the U.S. stock market, overseeing the operations of stock exchanges.

How the SEC Works

The Securities and Exchange Commission appeared in 1934, a year after the Securities Act in the United States was passed. At the time, these measures were taken to support the US economy, which was hit hard by the Great Depression. Today, the main goal of the SEC is to establish securities registration rules and monitor their implementation, protect the rights of investors and support them. Since brokers quite often provide traders with the opportunity to trade stocks, there is no need to underestimate the presence of a regulator like the SEC.

Key goals of the SEC:

• Support for regulated and efficient markets.

  • • Monitor compliance with federal laws related to the marketplace.

  • • Protect the rights of investors, including scammers.

  • • Monitor what is happening in the stock market and create a legal basis for registration.

  • • Support financial market development.

  • • Control the availability of information provided by companies to their investors.

  • • Oversee corporate acquisitions in the United States.

  • • Monitor the activities of private regulatory agencies and compliance with legal and auditing and accounting standards.

The SEC is one of the agencies of the United States Federal Government. Since the US financial market is the leading economic market in the world that influences all markets, its regulators are also the subject of attention from traders worldwide. gender. The SEC is one of the four largest regulators of the US financial markets. As a regulatory agency, the SEC has a very wide range of influence in the economic sector, and has an independent judicial body that participates in the most complex legal disputes in the market. The tools and methods used by the SEC to resolve disputes and conflicts are standard for international regulators.

SEC controls include:

1. Financial market participants. This is an important group, including:

• Commodities and stock exchanges - NYSE, NYMEX, COMEX, NASDAQ, CME, CBOT, MGEX, BATS Global Markets, ICE, CBOE and many more.

  • • All OTC Markets - OTC Bulletin Board, Market Groups, etc.

  • • All hedge funds.

  • • Financial asset management holdings, including the largest, such as JPMorgan Chase.

  • • Issuing organizations issue securities of all types, both to the stock market and over the counter.

  • • Investment banking.

  • • ETFs, including giants like iShares and SSGA.

  • • Brokers and market makers.

2. All types of securities and financial instruments. This includes stocks, bills, futures, options, warrants, checks, swaps, deposits, certificates, etc.

3. All types of investors have a 5% stake in any business. When purchasing this amount of assets, the investor must be registered in the SEC database. 4. All traders trading on US territories or exchanges.

Simply put, almost everything invested in or traded with securities is, in one way or another, under the control of the SEC. To collect applications, the SEC uses a special EDGAR data collection system that operates online and where people can file complaints, for example, against an unscrupulous issuer or broker virtue.

The offense was investigated by the SEC

There are a number of illegal actions that can be taken by the SEC.

• Theft of property.

  • • Intentionally manipulating the market price of assets.

  • • Intentionally providing inaccurate information or concealing important information about securities.

  • • Securities transactions in any form that have not been registered.

  • • Insider trading in securities.

  • • Illegal actions of brokers in relation to clients and systematic violations of rules.

As you can understand, thanks to the work of the SEC, the legislative framework in the financial market is maintained and improved, making investment funds safer.