United States

The US securities markets are the deepest in the world and, in many respects, the most heavily regulated. The federal securities laws, administered by the Securities and Exchange Commission (SEC), cast a wide regulatory net over persons and firms acting as intermediaries for investors in the US securities markets. US broker-dealer regulation is keyed to the concept of registration. All registered broker-dealers must maintain certain minimum levels of net capital. Broker-dealers are required to file periodic financial reports with the SEC. They must take adequate measures to segregate customer funds and securities in the custody of the firm and establish effective physical possession or control over those customer assets. Broker-dealers are required to provide customers with a written confirmation of each securities transaction. Numerous SEC and self-regulatory organization (SRO) rules regulate broker-dealers' relationships with their customers.