Carson, John2012-03-192012-03-192011-01-01https://hdl.handle.net/10986/3313This paper canvasses the trends in self-regulation and the role of self-regulation in securities markets in different parts of the world. The paper also describes the conditions in which self-regulation might be an effective element of securities markets regulation, particularly in emerging markets. Use of self-regulation and self-regulatory organizations is often recommended in emerging markets as part of a broader strategy aimed at improving the effectiveness of securities regulation and market integrity. According to the International Organization of Securities Commissions, reliance on self-regulation is an optional feature of a regulatory regime. Self-regulatory organizations may support better-regulated and more efficient capital markets, but the value of self-regulation is again being questioned in many countries. Forces such as commercialization of exchanges, development of stronger statutory regulatory authorities, consolidation of financial services industry regulatory bodies, and globalization of capital markets are affecting the scope and effectiveness of self-regulation -- and in particular the traditional role of securities exchanges as self-regulatory organizations.The paper reviews different models of self-regulation, including exchange self-regulatory organizations, member (or independent) self-regulatory organizations, and industry or dealers associations. It draws on examples of self-regulatory organizations from many markets to illustrate the degree of reliance on self-regulation, as well as the range of functions for which self-regulatory organizations are responsible, in markets around the world. Issues that are important to the effective operation of self-regulatory organizations are discussed, such as corporate governance, managing conflicts of interest, and regulatory oversight by government authorities.CC BY 3.0 IGOARBITRAGEARBITRATIONASSET MANAGEMENTASSET MANAGERSBIDSBONDBOND MARKETBOURSEBROKERBROKERSBUSINESS EXPANSIONCAPITAL MARKETCAPITAL MARKETS DEVELOPMENTCAPITAL REQUIREMENTSCENTRAL BANKSCENTRAL SECURITIES DEPOSITORIESCHECKSCIVIL CODECIVIL LAWCLEARING CORPORATIONCOMPETITIVE ADVANTAGECOMPETITORSCOMPLAINTSCOMPLIANCE COSTSCOMPLIANCE WITH REGULATIONSCONFLICTS OF INTERESTCONSULTATIVE COMMITTEECOOPERATIVE REGULATIONCORPORATE GOVERNANCECOST OF REGULATIONCOST-EFFECTIVENESSCOSTS OF REGULATIONCREDIBILITYCUSTODYDEBTDEBT MARKETSDEBT SECURITIESDERIVATIVESDERIVATIVES MARKETSDISCLOSURE REQUIREMENTSECONOMIC DEVELOPMENTEFFECTIVE REGULATIONEFFICIENT CAPITALEFFICIENT CAPITAL MARKETSEMERGING MARKETEMERGING MARKETSENFORCEMENT POWERSENFORCEMENT PROCESSESENFORCEMENT PROGRAMSEQUITIESEXCHANGE BOARDFINANCIAL FUTURESFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR POLICYFINANCIAL SERVICESFINANCIAL SERVICES INDUSTRYFOREIGN MARKETSFORM OF REGULATIONFUTURESFUTURES EXCHANGEFUTURES MARKETSGLOBAL CAPITALGLOBAL CAPITAL MARKETSGLOBAL MARKETSGLOBALIZATIONGLOBALIZATION OF SECURITIESGOVERNMENT AGENCIESGOVERNMENT AUTHORITIESGOVERNMENT AUTHORITYGOVERNMENT POLICYGOVERNMENT REGULATIONGOVERNMENT REGULATORSGOVERNMENT RESOURCESGOVERNMENTAL REGULATIONINSURANCEINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCIAL CRISISINTERNATIONAL ORGANIZATIONINTERNATIONAL SECURITIESINTERNATIONAL STANDARDSINTERNATIONAL SWAPSINVESTMENT BANKSINVESTMENT FUNDSINVESTOR EDUCATIONINVESTOR PROTECTIONISSUANCEJURISDICTIONJURISDICTIONSLEGAL FRAMEWORKLEGISLATIVE REQUIREMENTSLEVEL PLAYING FIELDLIQUIDITYLOCAL EXCHANGESMARKET DEVELOPMENTMARKET EFFICIENCYMARKET INFRASTRUCTUREMARKET INTERMEDIARIESMARKET MAKERMARKET PARTICIPANTSMARKET REGULATORMARKET SUPERVISIONMARKET SURVEILLANCEMINISTERMUTUAL FUNDNATIONAL SECURITIESNATIONAL STOCK EXCHANGEPARTICULAR COUNTRYPENSIONPENSION FUNDSPOLICY FRAMEWORKPRICE DISCOVERYPRIMARY MARKETPRIVATE MARKETSPRIVATE SECTOR DEVELOPMENTPUBLIC EQUITYPUBLIC GOODPUBLIC INTERESTPUBLIC INTEREST OBJECTIVESPUBLIC MARKETSPUBLIC POLICYPUBLIC POLICY OBJECTIVESPUBLIC SERVICEQUALITY STANDARDSREGULATORSREGULATORY ACTIONSREGULATORY ACTIVITIESREGULATORY AUTHORITIESREGULATORY AUTHORITYREGULATORY BODIESREGULATORY BURDENREGULATORY COMPLIANCEREGULATORY COSTSREGULATORY EFFECTIVENESSREGULATORY EFFICIENCYREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY FUNCTIONSREGULATORY INITIATIVESREGULATORY OVERSIGHTREGULATORY POLICYREGULATORY POWERSREGULATORY REGIMEREGULATORY REGIMESREGULATORY REQUIREMENTSREGULATORY RESOURCESREGULATORY RESPONSIBILITIESREGULATORY SERVICESREGULATORY STANDARDSREGULATORY STRUCTUREREGULATORY STRUCTURESREGULATORY SYSTEMREGULATORY SYSTEMSRETAIL MARKETSRISK MANAGEMENTRISK MANAGEMENT SYSTEMSRULESSALE OF SECURITIESSECONDARY MARKETSECURITIESSECURITIES DEALERSSECURITIES EXCHANGESECURITIES EXCHANGESSECURITIES INDUSTRYSECURITIES LAWSSECURITIES MARKETSECURITIES MARKETSSECURITIES REGULATIONSECURITIES REGULATIONSSECURITIES REGULATORSSELF-REGULATIONSET OF RULESSETTLEMENTSETTLEMENT SERVICESSETTLEMENT SYSTEMSSHAREHOLDERSSTANDARDS OF CONDUCTSTATUTORY AUTHORITIESSTATUTORY AUTHORITYSTOCK EXCHANGESTOCKSSUPERVISORY AUTHORITIESSUPERVISORY BOARDTECHNICAL ASSISTANCETRADINGTRADING MARKETSTRADING SYSTEMTRADING SYSTEMSTRANSPARENCYUSE OF SECURITIESWorld Bank10.1596/1813-9450-5542