The Securities and Exchange Commissions SEC primary concern is to maintain fair

The securities and exchange commissions sec primary

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The Securities and Exchange Commission’s (SEC) primary concern is to maintain fair and orderly markets and to protect investors from fraud. The SEC does not have the authority to limit risks taken by non-bank financial institutions or the ability to prop up a failing firm. Two types of firms come under the SEC’s jurisdiction: (1) all corporations that sell securities to the public, and (2) securities brokers or dealers and other securities markets intermediaries. The Futures Commission Merchants (FCM) are the futures equivalent of a securities broker or dealer (Murphy, 2015). FCMs must be certified by the Commodity Futures Trading Commission before they can sell futures contracts on a futures exchange market. FCMs are brokers but they also extend credit to investors looking to enter into the futures market (Investopedia, 2017). References: Investopedia (2017, March 23). Investopedia.com. Retrieved from Futures Commission Merchant- FCM: Murphy, E. (2015). Who Regulates Whom and How? An Overview of U.S. Financial Regulatory Policy for Banking and Securities Markets. Congressional Research Service.

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