Question

• What is an SRO? What are examples of SRO’s and what role do they play in both exchange and OTC markets?

Answer 1

SRO is the abbreviation for Self Regulatory Organisation. It is an non-governmental organisation which has the power to create the and enforce the professional standards and regulations. In financial SRO's, the priority is to protect the interest of the investors by establishing rules which promote ethics, equality, and professionalism.

Examples of SRO's are:-

1. The New York

2. The financial Planning Association

3. Chiago Board of Trade

4. American Council of Life Insurers

5. Options clearing coporations