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Prominent examples of "Self Regulating Organizations": The New York Stock Exchange (NYSE), The Financial Planning Association (FPA), Chicago Board of Trade (CBO
by beambot 3y ago
Prominent examples of "Self Regulating Organizations": The New York Stock Exchange (NYSE), The Financial Planning Association (FPA), Chicago Board of Trade (CBOT), American Council of Life Insurers (ACLI), Financial Industry Regulatory Authority, Inc. (FINRA), Fixed Income Clearing Corporation (FICC), Options Clearing Corporation (OCC), American Institute of Certified Public Accounts (AICPA)
https://www.investopedia.com/terms/s/sro.asp https://www.investopedia.com/terms/s/sro.asp
- mattmaroon 3y agoBy organization he clearly meant single for-profit corporation. While the language was imprecise, he surely wasn’t referring to these types of entities.
- WrongAssumption 3y agoNYSE and CBOT are single for profit corporations.
- fakedang 3y agoNYSE is a for profit entity owned by Intercontinental Exchange. They also own Euronext. And they're regulated by the SEC, but carry out their own regulation efforts too. The parallel isn't that far off.
- fakedang 3y agoNYSE is a for profit entity owned by Intercontinental Exchange. They also own Euronext. And they're regulated by the Sec, but carry out their own regulation efforts too. The parallel isn't that far off.
- shutupnerd0000 3y agoAll very upstanding and incorrupt organizations
- vkou 3y agoWould you like to tell us how the NYSE is corrupt? Or do they just get tarred with 'Well, they work in finance, of course they are all crooks' brush?
- pi-e-sigma 3y agoJust google what they do when they don't like some trades
- mulmen 3y agoThe standard for corruption is higher than “I don’t like your decision.”
- pi-e-sigma 3y agoSo you think anyone can get their trades reverted on the stock exchange if they ask nicely? Oopsie, I clicked the wrong button, now please revert the trade that lost me some money. If some get such preferential treatment it's clear cut case of corruption, you don't need to catch them with the proverbial smoking gun to know it
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- Tesl 3y agoStill waiting for all this evidence of yours. Much easier to just go by gut feeling though isn't it.
- pi-e-sigma 3y agohttps://www.sec.gov/news/press-release/2018-31 https://www.sec.gov/news/press-release/2018-31 What now? I'm sure you are going to say that they settled because they were innocent, right? And that they halted trades 'by mistake', not on a purpose
- bunderbunder 3y agoThese examples are arguably qualitatively different from what's happening with Boeing's self-inspection. I used to work at an organization that was governed by multiple of the SROs you list there. Here's how it worked: They set rules, we followed them, they monitored and audited us. There were also governmental organizations monitoring both them and us. I think that the key distinction here is not actually public vs. private. It's more of a "sunlight is the best disinfectant" situation. The simple knowledge that you have some external agency that doesn't have moral hazard concerns to compromise its interests that is keeping an eye on you, and that you know is keeping an eye on you, does a lot to incentivize better behavior. Is it perfect? No, far from it. But, at least in the specific case of the financial industry, it's not clear to me that a 100% governmental regulatory system would actually fare any better. I think that the unstated major premise of such an idea is that the people in charge of the governmental regulators - elected officials - are uncompromisable ethical paragons. And if you believe that, I've got some hot penny stocks that I'd like to tell you about.