An overview of Alternative Trading Systems (ATS), platforms that allow trading securities outside of traditional exchanges, under regulatory oversight.
An independent agency of the U.S. federal government that regulates the U.S. derivatives markets, which include futures, swaps, and certain kinds of options.
A Designated Professional Body (DPB) is a professional body registered with financial authorities, possessing statutory responsibility for regulating its professional members.
Economic freedom refers to the absence of regulation or other dictates from government or other authority in economic matters, enabling efficient allocation of resources in a capitalist system.
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 restructured the regulatory and deposit insurance systems concerning savings and loan associations and introduced reforms to prevent future financial crises.
A first-tier market is the main trading platform for the equity of large, established companies, characterized by high levels of regulation and supervision. It represents the primary, most liquid segment of the market, ensuring efficient and transparent transactions.
A foreign corporation is a legal entity that is registered outside the state or country in which it primarily conducts business. It is important to distinguish between out-of-state corporations and alien corporations.
High-Frequency Trading (HFT) involves the use of complex algorithms to trade large volumes of shares at very high speeds. This computerized trading strategy has been associated with sudden market movements and remains a controversial practice despite prevalent regulation attempts.
Established in 1983, the International Organization for Securities Commissions (IOSCO) is an influential body dedicated to setting international standards for the regulation of global securities and futures markets. Based in Madrid, IOSCO promotes the adoption of internationally-agreed accounting standards, facilitating multinational share offerings.
Interstate commerce encompasses business activities among inhabitants of different states, including the transportation of persons and property, navigation of public waters, and the purchase, sale, and exchange of commodities.
Legislation passed by Congress requiring registration and regulation of investment companies by the Securities and Exchange Commission. The Act sets the standards by which mutual funds and other investment companies operate.
A legal monopoly refers to the exclusive right granted to a company to offer a particular service or product within a specific territory. In exchange, the company agrees to have its policies and rates regulated.
An offering circular is a document used to provide details about a property or security offering when a prospectus is not required.
The term 'offshore' refers to financial organizations with headquarters outside their primary country of operation or to oil and gas drilling ventures in the sea. Offshore activities are significant in both finance and energy sectors.
Police power refers to the inherent power of governments to impose restrictions on private rights that are reasonably related to the promotion and maintenance of the health, safety, morals, and general welfare of the public.
Regulation refers to a set of rules or directives made and maintained by an authority (often a government agency) to administer and enforce a law. Regulations are essential for establishing standards, maintaining order, and ensuring compliance within various sectors including business, finance, and public safety.
The first law enacted by Congress to regulate the securities markets, approved May 26, 1933, as the Truth in Securities Act.
