US stock exchanges agree to centralize insider trading regulation
- United States
- 08/18/2008
The US Securities and Exchange Commission (SEC) announced on Wednesday that it has reached a tentative agreement with ten US stock exchanges to centralize insider trading controls among the institutions. Under the plan, the programs to prevent and detect insider trading will be centrally controlled by the Financial Industry Regulatory Authority (FINRA) and a section of the New York Stock Exchange (NYSE), instead of having each exchange run its own program. Under the Securities Exchange Act of 1934, the markets are required to institute self-regulating controls, and the SEC has said the plan should make those controls more effective.
