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Advancing Market Regulation and Transparency

A key component of our mission to protect investors and ensure market integrity is to perform effective oversight of securities markets. FINRA, working closely with the SEC and the securities exchanges, plays a central role in conducting ongoing oversight within and across markets, monitoring for misconduct and intervening promptly when we find it.
Advancing Market Regulation and Transparency

FINRA surveils the markets for suspicious activity such as manipulation and other types of fraud. We oversee about 99 percent of the U.S. stock market, 50 percent of the options market and the entire over-the-counter market for trading exchange-listed and non-exchange-listed stocks for compliance with FINRA rules and federal securities laws. We do this through examinations and by leveraging a innovative market surveillance program. Our surveillance looks for abusive activity by tracking orders from the moment they are placed by a customer, through their journey in the markets, until those orders are ultimately executed. When potentially suspicious activity triggers alerts, we further analyze them and then, if appropriate, move forward with a formal examination or enforcement action.

FINRA also has a long history of brining transparency to the equity and bond markets to help investors make informed investment decisions. We operate facilities that create the foundation of the regulatory audit trail and provide investors with timely quote and trade information on equity and debt securities. These facilities include TRACE® (the Trade Reporting and Compliance Engine); the Alternate Display Facility®; the Trade Reporting Facilities® and the Over-the-Counter Reporting Facility®.   

News Release
WASHINGTON—FINRA announced today that it has appointed Scott W. Anderson as Executive Vice President and Head of Market Regulation and Transparency Services. Anderson began his career at NASD, FINRA’s predecessor organization, and has 25 years of experience working on complex legal and compliance matters relating to the regulation of securities markets. He will join FINRA on Jan. 25, report to President and CEO Robert W. Cook and serve on FINRA’s Management Committee.
Report / Study
FINRA regulates a critical part of the securities industry – brokerage firms doing business with the public in the United States. In an effort to increase public awareness and understanding about the broad range of FINRA-registered firms and individuals, FINRA shares an annual snapshot of some of the data collected in the course of its work.
News Release
Statistical Overview of Brokerage Firms, Registered Representatives and Trading Activity WASHINGTON—FINRA today published the 2020 FINRA Industry Snapshot, its annual statistical report on the brokerage firms, registered representatives and market activity that FINRA regulates.
Podcast
Market volatility in recent weeks has surpassed anything else in history in terms of both the extremity and duration. Despite that, the so-called plumbing of U.S. financial markets has held up remarkably well. On this episode, we talk to FINRA’s head of Market Regulation to learn how the evolution of U.S. market structure contributed to that resilience.
News Release
Treasury Aggregate Statistics to Provide More Transparency in Marketplace WASHINGTON — FINRA today for the first time posted weekly, aggregate data on the trading volume of Treasury securities reported to TRACE®, FINRA’s Trade Reporting and Compliance Engine®.
Podcast
More than 15,000 different stocks, options and bonds trade every day across millions of transactions. When it comes to detecting insider trading, it really is like finding a needle in a haystack. But that’s exactly what Sam Draddy and his team work to uncover.
Blog Post
For years, the London Interbank Offered Rate (Libor) set the benchmark for global interest rates and impacted trillions of dollars in financial activity, leading many to call it as “the world’s most important number.” However, following controversies and reform efforts after the 2008 financial crisis, regulators in the United States and United Kingdom began exploring a replacement benchmark rate system. In the UK, the Financial Conduct Authority announced in 2017 that after 2021, banks would no longer be compelled to submit the data required to populate Libor.
News Release
WASHINGTON – Beginning today, FINRA is expanding its ongoing transparency initiative for the over-the-counter (OTC) equity market by publishing new data about OTC trading volume occurring outside of alternative trading systems (ATSs). The data is available free of charge on FINRA’s website. For the first time, FINRA will publish:
Podcast
This episode originally aired in August 2018.  Schoolhouse Rock taught us how a bill up on Capitol Hill becomes law. Unfortunately, they never got around to explaining how a FINRA rule proposal becomes regulation. In this episode, Phil Shaikun from FINRA’s Office of General Counsel and Jonathan Sokobin, FINRA’s Chief Economist, fill that gap and explain how lawyers and economists are working together to ensure FINRA’s rules are as effective and as tailored as possible.
News Release
Statistical Overview of Brokerage Firms, Registered Representatives and Trading Activity WASHINGTON—FINRA today published the 2019 FINRA Industry Snapshot, its second annual statistical report on the brokerage firms, registered representatives and market activity that FINRA regulates.

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