Talk:National Market System

Redirect

I propose that we make this page the go to article for a summary of US securities clearing. Jshreffl (talk) 04:16, 22 May 2014 (UTC)

Confusing

This article needs a better explanation of what it is and how the list of organisations are linked to it, I feel at the moment it provides no context and would confusing for most readers. Sargdub (talk) 02:10, 22 September 2014 (UTC)

History

I propose we add a historical section explaining how the NMS has been built over time.

Congress directed the SEC in 1975 to facilitate the establishment of a national market system for securities. The SEC was also directed to with with self-regulatory organizations in planning, developing, operating, or regulating a national market system(1). The primary self-regulatory organization at the time was the National Association of Securities Dealers (NASD), but in 2006 the NASD and NYSE member regulation group combined into the Financial Industry Regulatory Authority (FINRA) (2). After 2007, the NMS has been primarily managed by FINRA and Nasdaq.

(1) Citations below from “S. 249 — 94th Congress: Securities Acts Amendments.” www.GovTrack.us. 1975. February 21, 2021 <https://www.govtrack.us/congress/bills/94/s249>

National market " ( 2 ) The Commission is directed, therefore, having due regard for system for the public interest, the protection of investors, and the maintenance securities, of fair and orderly markets, to use its authority under this title to establishment. facilitate the establishment of a national market system for securities

                  (which may include subsystems for particular types of securities with
                 unique t r a d i n g characteristics) in accordance with the findings and to
                 carry out the objectives set forth in p a r a g r a p h (1) of this subsection.
                 The Commission, by rule, shall designate the securities or classes of
                 securities qualified for t r a d i n g in the national market system from
                 among securities other than exempted securities. (Securities or classes
                 of securities so designated hereinafter in this section referred to as
                 'qualified securities'.)

                            " ( B ) by rule or order, to authorize or require self-regulatory
                         organizations to act jointly with respect to matters as to which
                         they share authority under this title in planning, developing,
                         operating, or regulating a national market system (or a sub-
                         system thereof) or one or more facilities thereof; and

Studies and " ( C ) to conduct studies and make recommendations to the recommendations Congress from time to time as to the possible need for modifica- to Congress. tions of the scheme of self-regulation provided for in this title

                         so as to a d a p t it to a national market system.

(2) https://www.finra.org/media-center/news-releases/2007/nasd-and-nyse-member-regulation-combine-form-financial-industry — Preceding unsigned comment added by Glmantcand (talk • contribs) 23:09, 21 February 2021 (UTC)

Recopied text for readability

Hi, I'm trying to read the text above but the text is jumbled, so I'm going to recopy the portions of the 1975 bill below, unjumbled (it's easier to copy when the text is downloaded as a PDF from the link provided above):

National market system for securities, established.
"(2) The Commission is directed, therefore, having due regard for the public interest, the protection of investors, and the maintenance of fair and orderly markets, to use its authority under this title to facilitate the establishment of a national market system for securities (which may include subsystems for particular types of securities with unique trading characteristics) in accordance with the findings and to carry out the objectives set forth in paragraph (1) of this subsection. The Commission, by rule, shall designate the securities or classes of securities qualified for trading in the national market system from among securities other than exempted securities. (Securities or classes of securities so designated hereinafter in this section referred to as 'qualified securities'.)

Advisory committees, establishment. 5 us e app. I.
"(3) The Commission is authorized in furtherance of the directive m paragraph (2) of this subsection—
(A) to create one or more advisory committees pursuant to the Federal Advisory Committee Act (which shall be in addition to the National Market Advisory Board established pursuant to subsection (d) of this section) and to employ one or more outside experts;
(B) by rule or order, to authorize or require self-regulatory organizations to act jointly with respect to matters as to which they share authority under this title in planning, developing, operating, or regulating a national market system (or a subsystem thereof) or one or more facilities thereof; and
Studies and recommendations to Congress.
(C) to conduct studies and make recommendations to the Congress from time to time as to the possible need for modifications of the scheme of self-regulation provided for in this title so as to adapt it to a national market system.

--68.175.117.209 (talk) 03:34, 16 November 2022 (UTC)