Pulling the Plug On the SROs: Dramatic Changes May Be on the Horizon
Traders Magazine, December 2004
Self-regulatory organizations, or SROs, may never be the same. These organizations, described by Securities and Exchange Commission officials as the "front line" of regulation, traditionally have been run as mutually-owned, non-profit groups. Their boards usually have not been required to have a majority of outside, or independent, directors. Self-regulatory organizations have often combined regulatory with business functions. They have sometimes had a few big members who potentially had the ability to control how the SROs would be run.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.