Who Regulates The Financial Markets?

stacks of paper

Here is a list of the regulatory bodies overseeing online trading worldwide listed alphabetically by country:

  • Afghanistan – Da Afghanistan Bank (DAB)
  • Albania – Albanian Financial Supervisory Authority (FSA)
  • Andorra – Andorran Financial Authority (AFA)
  • Anguilla – Anguilla Financial Services Commission
  • Antigua & Barbuda – Financial Services Regulatory Commission
  • Argentina – Comisión Nacional de Valores (CNV)
  • Armenia – Central Bank of Armenia (CBA)
  • Australia – Australian Securities and Investments Commission (ASIC)
  • Austria – Financial Market Authority (FMA)
  • Azerbaijan – Financial Market Supervisory Authority of Azerbaijan
  • Bahamas – Securities Commission of the Bahamas
  • Bahrain – Central Bank of Bahrain
  • Bangladesh – Securities and Exchange Commission (Bangladesh)
  • Barbados – Barbados Financial Services Commission, Central Bank of Barbados, Financial Intelligence Unit (Barbados)
  • Belarus – National Bank of the Republic of Belarus
  • Belgium – Financial Services and Markets Authority (FSMA)
  • Belize – International Financial Services Commission
  • Bermuda – Bermuda Monetary Authority
  • Bhutan – Royal Monetary Authority of Bhutan (RMA)
  • Bolivia – Autoridad de Supervisión del Sistema Financiero (ASFI)
  • Bosnia and Herzegovina – Republika Srpska Securities Commission for Republika Srpska, Securities Commission of the Federation of Bosnia and Herzegovina
  • Botswana – Non-Bank Financial Institutions Regulatory Authority (NBFIRA), Bank of Botswana (BOB)
  • Brazil – Securities and Exchange Commission of Brazil (CVM)
  • British Virgin Islands – British Virgin Islands Financial Services Commission
  • Brunei – Brunei International Financial Center of the Ministry of Finance
  • Bulgaria – Financial Supervision Commission (Bulgaria) (FSC)
  • Cambodia – National Bank of Cambodia (NBC)
  • Canada – Canadian Securities Administrators (CSA)
  • Cayman Islands – Cayman Islands Monetary Authority
  • Chile – Superintendencia de Valores y Seguros
  • China – China Securities Regulatory Commission (CSRC)
  • Colombia – Superintendencia Financiera de Colombia, National Directorate of Taxes and Customs (DIAN)
  • Congo, the Democratic Republic – Central Bank of Congo
  • Congo, The Republic of – Agence de Régulation des Transferts de Fonds (ARTF)
  • Costa Rica – Superintendencia General de Valores, Superintendencia General de Seguros (Costa Rica)
  • Côte d'Ivoire – Banque Centrale des Etats de l'Afrique de l'Ouest
  • Croatia – Croatian Financial Services Supervisory Agency, Croatian National Bank
  • Cyprus – Cyprus Securities and Exchange Commission (CYSEC)
  • Czech Republic – Czech National Bank
  • Denmark – Financial Supervisory Authority (Denmark)
  • Dominica – Financial Service Unit of the Commonwealth of Dominica
  • Dominican Republic – Banco Central de la Republica Dominica, Superintendencia de Bancos de la Republica Dominicana, Superintendencia del Mercado de Valores de la Republica Dominicana
  • Ecuador – Superintendencia de Bancos
  • Egypt – Financial Regulatory Authority
  • El Salvador – Superintendencia del Sistema Financiero, Instituto De Garantía De Depósitos
  • Estonia – Financial Supervisory Authority of Estonia, Bank of Estonia
  • European Union – European Securities and Markets Authority (ESMA)
  • Faroe Islands – Insurance Authority of the Faroe Islands
  • Finland – Financial Supervisory Authority
  • France – Autorité des marchés financiers (AMF)
  • Georgia – National Bank of Georgia
  • Germany – Federal Financial Supervisory Authority (BaFin)
  • Ghana – Securities and Exchange Commission (Ghana) (SEC)
  • Gibraltar – Gibraltar Financial Services Commission (GFSC)
  • Greece – Hellenic Capital Market Commission
  • Grenada – Grenada International Financial Services Authority (GIFSA)
  • Guatemala – Superintendencia de Bancos (SB)
  • Guernsey – Guernsey Financial Services Commission
  • Honduras – National Banks and Securities Commission
  • Hong Kong – Hong Kong Monetary Authority (HKMA), Hong Kong Securities and Futures Commission (SFC), Hong Kong Insurance Authority (IA), Hong Kong Mandatory Provident Fund Schemes Authority (MPFA)
  • Hungary – Hungarian National Bank (MNB)
  • Iceland – Central Bank of Iceland
  • India – Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA)
  • Indonesia – Financial Services Authority (Indonesia), Bank Indonesia, Indonesia Deposit Insurance Corporation
  • Iran – Securities and Exchange Organization of Iran, Central Bank of Iran
  • Iraq – Iraq Securities Commission (ISC)
  • Ireland – Central Bank of Ireland
  • Isle of Man – Isle of Man Financial Services Authority
  • Israel – Israel Securities Authority (ISA)
  • Italy – Commissione Nazionale per le Società e la Borsa (CONSOB), Institute for the Supervision of Insurance (ISVAP)
  • Jamaica – Financial Services Commission (Jamaica), Bank of Jamaica
  • Japan – Financial Services Agency (FSA), Securities and Exchange Surveillance Commission (SESC)
  • Jersey – Jersey Financial Services Commission
  • Jordan – Jordan Securities Commission
  • Kazakhstan – Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, Committee for the Control and Supervision of the Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan, Astana Financial Services Authority
  • Kenya – Capital Markets Authority (Kenya)
  • Kuwait – Central Bank of Kuwait (CBK), Capital Markets Authority Kuwait (CMA)
  • Latvia – Financial and Capital Market Commission
  • Lebanon – Banking Control Commission of Lebanon (BCCL) and Insurance Control Commission (ICC)
  • Lesotho – Central Bank of Lesotho
  • Liechtenstein – Financial Market Authority (Liechtenstein) (FMA)
  • Lithuania – Bank of Lithuania
  • Luxembourg – Commission de Surveillance du Secteur Financier (CSSF), Commissariat aux Assurances (CAA)
  • Malaysia – Bank Negara Malaysia (BNM), Securities Commission Malaysia (SC)
  • Malta – Malta Financial Services Authority (MFSA), Central Bank of Malta
  • Mauritania – Central Bank of Mauritania (BCM)
  • Mauritius – Bank of Mauritius (BOM), Financial Services Commission (FSC)
  • Mexico – Comisión Nacional Bancaria y de Valores, Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros
  • Moldova – National Commission for Financial Markets
  • Montenegro – Insurance Supervision Agency
  • Montserrat – Montserrat Financial Services Commission
  • Mongolia – Financial Regulatory Commission of Mongolia, Central Bank of Mongolia
  • Morocco – Moroccan Capital Market Authority
  • Nepal – Nepal Rastra Bank, Beema Samiti, Securities Board Nepal (SEBON)
  • Netherlands – Netherlands Authority for the Financial Markets (AFM), De Nederlandsche Bank (DNB)
  • New Zealand – Financial Markets Authority (New Zealand)
  • Nigeria – Central Bank of Nigeria (CBN), Securities and Exchange Commission (Nigeria)
  • North Macedonia – Securities and Exchange Commission of the Republic of North Macedonia, National Bank of North Macedonia
  • Norway – Financial Supervisory Authority of Norway
  • Oman – Capital Market Authority (Oman)
  • Pakistan – State Bank of Pakistan, Securities and Exchange Commission Pakistan
  • Panama – Superintendencia del Mercado de Valores
  • Papua New Guinea – Bank of Papua New Guinea
  • Peru – Superintendencia de Banca, Seguros y AFP (SBS), Superintendencia del Mercado de Valores (SMV)
  • Philippines – Philippine Securities and Exchange Commission (SEC)
  • Poland – Polish Financial Supervision Authority (KNF)
  • Portugal – Portuguese Securities Market Commission (CMVM), Portuguese Insurance Regulator (ASF)
  • Qatar – Qatar Financial Centre Regulatory Authority (QFCRA)
  • Romania – Romanian Financial Supervisory Authority
  • Russia – Central Bank of Russia (CBR)
  • Saint Lucia – Financial Sector Supervision Unit
  • Saint Kitts and Nevis – Financial Services Regulatory Commission, Nevis Financial Regulatory Services Commission
  • Saint Vincent and the Grenadines – Financial Services Authority, Capital Market Association of the Eastern Caribbean
  • Samoa – Central Bank of Samoa
  • San Marino – Central Bank of San Marino (BCSM)
  • Saudi Arabia – Saudi Arabian Monetary Agency (SAMA), Capital Market Authority (Saudi Arabia) (CMA)
  • Serbia – Securities Commission (Serbia)
  • Seychelles – Central Bank of Seychelles, Seychelles Financial Services Authority (SFSA)
  • Singapore – Monetary Authority of Singapore (MAS)
  • Slovakia – National Bank of Slovakia
  • Slovenia – Securities Market Agency
  • South Africa – South African Reserve Bank, National Credit Regulator, Prudential Authority, Financial Sector Conduct Authority
  • Spain – Spanish Securities Market Commission (CNMV), Dirección General de Seguros y Fondos de Pensiones (DGSFP), Banco de España (BdE)
  • Sri Lanka – Central Bank of Sri Lanka, Securities and Exchange Commission of Sri Lanka
  • Swaziland – Capital Markets Development Unit (Central Bank of Swaziland)
  • Sweden – Financial Supervisory Authority (Sweden)
  • Switzerland – Swiss Financial Market Supervisory Authority, Swiss National Bank, Swiss Exchange
  • Taiwan – Financial Supervisory Commission
  • Tanzania – Capital Markets and Securities Authority
  • Thailand – Securities and Exchange Commission (Thailand)
  • Trinidad and Tobago – Trinidad and Tobago Securities and Exchange Commission
  • Tunisia – Financial Market Council
  • Turkey – Banking Regulation and Supervision Agency, Capital Markets Board
  • Uganda – Capital Markets Authority (Uganda)
  • Ukraine – National Securities and Stock Market Commission
  • United Arab Emirates – Securities and Commodities Authority
  • United Kingdom – Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA)
  • United States – Securities & Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Financial Industry Regulatory Authority (FINRA), Municipal Securities Rulemaking Board (MSRB), National Futures Association (NFA), Securities Investor Protection Corporation (SIPC)
  • Uruguay – Banco Central del Uruguay
  • Uzbekistan – Center for Coordination and Control over Functioning of Securities Market
  • Vatican City – Financial Information Authority
  • Venezuela – Superintendencia Nacional de Valores (SNV)
  • Vietnam – State Securities Commission (SSC)
  • Zambia – Securities and Exchange Commission (Zambia)
  • Zimbabwe – Reserve Bank of Zimbabwe (RBZ)

When looking at the United States, the financial markets are overseen by two government bodies:

  • SEC (Securities and Exchange Commission)
  • CFTC (Commodity Futures Trading Commission)

These two bodies have similar goals. Preventing fraud and abuse and making sure that investors and traders have all the information to make decisions.

On top of the organizations listed, regulatory groups are put in place by the exchanges themselves. These ensure that all of the traders comply with the rules and rules of organizations. In order to cope with insider trading and market manipulation, exchanges monitor trading, looking for patterns that might indicate that.

Bond market and stock market regulation

These two markets are the most prominent. These markets have a lot of small issuers, just like not one government is issuing currency; there are a lot of companies that issue stocks. Regulators are active.

  • The SEC – a government agency making sure the markets work efficiently
  • FINRA – all stock and bond brokerage firms and their employees are represented and regulated by FINRA. To date, almost 5000 firms and more than 600,000 employees are registered to sell securities. On top of that FINRA also does background check and licensing exams. They also provide information for traders and investors and regulate securities trading, making sure firms comply.

Forex Regulation

Forex is the largest and most liquid market in the world. The fx markets are not well regulated. Let's take a tourist for example. There is nothing stopping him from exchanging U.S. dollars for Euro. There is no regulation, no oversight and no hassle. Regulation isn't necessary for someone at the local shop, buying a can cola for example. This has allowed some firms  to misrepresent forex trading and day traders getting badly burned in the process.

Futures on currency and options

Currency is traded in the spot, which is not regulated. Trades exchange currencies at current exchange rate. Quite a lot of traders use futures and options to trade currencies. These are regulated as derivatives through bodies like the NFA and CFTC.

Banks

Most forex trading is done by banks, which are heavily regulated. The Federal Reserve Banks along with U.S. Treasury Department oversee the forex markets looking for patterns of money laundering and manipulation.

Derivatives regulation

Derivatives markets have their own regulatory bodies.

  • Commodity Futures Trading Commission (CFTC) – this government agency oversees market activities in financial and agricultural commodities. CFTC makes sure both parties on an options or futures contract are able to meet  the obligations. They also enforce that the self-regulatory organizations and exchanges have all the regulations in place and respected.
  • National Futures Association (NFA) –  This organization regulates over 4,000  firms and their employees working in  the futures exchanges. NFA does background checks along with licensing exams. It also regulates futures trading and makes sure firms comply.