Post-Finra, NYSE Regulation Focuses on Trading
When the Financial Industry Regulatory Authority (Finra) was formed last summer, it absorbed 60 percent of the staff at the New York Stock Exchange's independent regulatory arm. But while the merger of NASD and the Big Board's member-regulation functions gave the industry a consolidated self-regulatory organization (SRO), NYSE Regulation has hardly become irrelevant.
Finra is responsible for compliance away from the floor--ensuring, for example, that brokerage firms do not sell clients investments that are inappropriate for their risk tolerance--and it oversees relations between floor brokers and upstairs firms. Listed companies and trading fall under NYSE Regulation's purview.
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