self-regulatory organizations (SROs)

Self-regulatory organizations (SROs) are non-governmental entities that create and enforce rules and standards within specific industries. They operate to improve transparency, maintain standards, and protect the interests of the public and market participants. SROs monitor compliance, conduct audits, and impose disciplinary measures when necessary. Examples include the Financial Industry Regulatory Authority (FINRA) in finance and the National Association of Securities Dealers (NASD). By regulating themselves instead of relying solely on government oversight, SROs aim to enhance industry integrity and accountability.