National Association of Securities Dealers

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National Association of Securities Dealers (see FINRA)
Founded 1939
Web site http://www.finra.org/

The NASD (NASD Inc.), prior to consolidation in 2007, was an industry organization representing individuals and firms involved in the U.S. securities business. It was the primary Self Regulatory Organization (SRO) responsible for the regulation of its industry, with Securities and Exchange Commission (SEC) oversight.

Background

NASD was established in 1939, responding to the 1938 Maloney Act amendments to the Securities Exchange Act of 1934. The Maloney Act allows self-regulation by securities firms involved in the over-the-counter (OTC) market.

In 1971 the NASD created and launched a computerized stock trading system, the National Association of Securities Dealers Automated Quotations, quickly shortened to the "NASDAQ" stock market, though it was not a stock market in the truest sense. The NASDAQ and AMEX stock exchanges merged in 1998. In 2000 the NASDAQ underwent a major recapitalization and became an independent entity, totally separate from NASD.

In 2007, the NASD merged with the New York Stock Exchange's regulation committee to form the Financial Industry Regulatory Authority, or FINRA.

NASD was consolidated in July 2007 with the member regulation, enforcement and arbitration oversight functions of the New York Stock Exchange to form the Financial Industry Regulatory Authority (FINRA).[1]

NYSE Regulation's three divisions (Market Surveillance, Enforcement, and Listed Company Compliance) regulate equities and options trading and listing compliance for the New York Stock Exchange, NYSE Arca, and NYSE Alternext US.

Also See

FINRA


References

  1. "SEC Release No. 34-56145”. SEC.