State Regulation of the World“s Securities Markets, System of Self-Regulation in the Securities Markets - International Trade

State Regulation of the World's Securities Markets

In modern conditions, no market economy can act without certain centralization at the state level of regulation. State regulatory organizations provide control and regulation of the national stock market.

In the United States of America, the control over the activities of the national stock markets is entrusted to the Securities and Exchange Commission, the Securities and Exchange Commission, which is independent of public financial bodies. As one of the first securities market regulation systems, the US regulatory system has become a model for other countries.

The timing of the birth of the regulatory system in the United States of America can be attributed to 1933, when after numerous speculations in the stock market (especially on the New York Stock Exchange), the Securities Act was passed, which regulated the issues in the primary securities market. The main idea of ​​this act is the principle of disclosure of information, the special importance of which is noted in the principles of the IOSCO.

In the 1930s. (the period of the formation of the regulatory system of the United States of America) was the time most saturated with legislative activity. In these years the following laws were adopted:

1) The Banking Law of 1933, which prohibited banks from engaging in investment activities with securities, that is, in effect, differentiated the banking and investment spheres;

2) The Law on Stock Exchanges of 1934 obliging stock exchanges and investment organizations to register with the Securities and Exchange Commission established under the same law, as well as prohibiting manipulation of securities, limiting their sale without coverage,/p> 3) The Law on Holding Companies of 1935, in which, in addition to registration requirements with the SEC, the commission itself was given the right to split holdings on a territorial basis;

4) The OTC Supermarket Control Act of 1938, or the so-called Maloney Act, which became an amendment to the law on stock exchanges. According to this law, the National Association of Securities Dealers, the National Association of Securities Dealers, was set up under the control of the SEC;

5) The Trust Deed of Trust Act of 1939 authorizing an open subscription to bonds with a value in excess of $ 7.5 million only if there is a trustee and registered with the SEC. The trustee protects the interests of the investor.

In subsequent years, after a certain break, a number of additional laws and amendments were adopted on securities, on the one hand, disclosing aspects of application, on the other - expanding the areas of operation of these legislative acts.

One of the laws of interest from the point of view of international activities of joint-stock companies is the law on bribery of officials by residents of the United States of America abroad, adopted by Congress in 1977. The law prohibits officials of US corporations to bribe government officials and foreign politicians states.

State regulation of the stock market in other countries is based primarily on a regulatory system that is approximately identical to the US, which certainly does not exclude a number of features peculiar to these countries.

First of all, this is the presence of a system of unified state control in the national market.

There are many countries (Canada, Australia, Germany, Turkey, the Netherlands, Poland, Austria, France, etc.) in which, like in the United States of America, the functions of supervising the stock market are assigned solely to one government agency - the central bank, the ministry of economy or the national commission for the securities market.

In other countries (Switzerland, Japan, Spain, Denmark, Greece) there is a combination of control functions in the hands of two state bodies: the Ministry of National Economy and the Capital Market Commission in Greece, the National Commission on Banks and Securities, and also the National Bank - in Spain, the Financial Supervision Authority and the Securities Board - in Denmark, the Ministry of Finance and the Financial Supervision Agency - in Japan, the Federal Swiss Banking Commission and the Swiss Stock Exchange - in the Doorman and

In Mexico, the functions of supervising the activity of the securities market are carried out by three state bodies - the National Commission on Banks and Securities, the Ministry of Finance and Credit Policy and the Central Bank.

There are states where there is practically no state regulatory body and the duties for regulating the national stock market are performed by stock exchanges themselves, and, to put it differently, there is a system of self-regulation in these countries. These countries include Italy and New Zealand.

The system of self-regulation in the securities markets

In the world's stock markets, in addition to state regulation, a system of self-regulation operates. The role of self-regulating organizations in the securities market is performed by stock exchanges. They oversee the behavior of market participants, compliance with internal rules for trading activities and, in general, the situation in the market. They also monitor compliance with state securities market laws. While in most countries, at the same time as the self-regulation system, the control functions of a government agency, be it the Ministry of Finance, the central bank or the Ministry of Economics, there are two countries where the regulation of the national stock market is entrusted to stock exchanges. >

Many computer stock exchanges in the world have a computer-based system for controlling current market activity. This system identifies inadequate (possible use of insider information, price manipulation) from the point of view of the current conjuncture in the transaction market and informs the control bodies about them. In turn, the controlling bodies of the exchange in the event of a situation with a suspicious transaction have the right to stop trading on this type of instrument.

Self-regulating organizations require (for the possibility of dealing with securities) registration from market participants, including not only from firms, but also from individual brokers and dealers who wish to carry out transactions with customers. Self-regulating organizations require the provision of monthly financial statements, are engaged in checking the reporting of firms, conducting certification of specialists.

The regulation of stock exchanges or self-regulating organizations (SROs) such as NASD, carried out if necessary by transferring the activities of market participants to the legal channel, contributes to maintaining overall stability in the country's financial market.


• The functions of international securities trading are different, the ego and the risk insurance tool, and the source of additional financing for government and corporate spending, and the barometer of economic development, and the scope of investment, and an alternative income opportunity, and a cash liquidity regulator.

• Among the key players of international securities trading, there are: mutual funds, pension funds, joint-stock companies, hedge funds, mixed funds, the state as a seller of government bonds, banks, investment companies and individual investors .

• The methods of organizing trading activities in the struggle for the client include: improving stock exchanges in order to attract more customers; the emergence of new alternative trading systems operating outside regulated markets; development of systems dealing with brokerage and dealer activities, selling and buying securities in the interests of the client or in personal interests.

• In the sphere of international trade in securities, the processes of integration of stock markets are taking place. Stock exchanges, being the main representatives of the national stock market, are the key agents of financial integration.

• The main objectives of regulating the activity of the world's stock markets, which are allocated by the International Organization of Securities and Exchange Commission, are: protection of investors; guarantee of fairness, efficiency and transparency in the market; a decrease in the level of systematic risk.

• The huge scale of speculative transactions in international financial markets adversely affects not only the economies of the countries involved in these operations, but, due to the current high level of internationalization, and to states and entire regions less than others related to their initiation. Speculative transactions account for up to 90% of daily foreign exchange transactions.

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