How Have the Regulations Shaped the Trading Markets?

How have the Regulations Shaped the Trading Markets

When we talk about different trading markets, regulations always play a pivotal role. Does not matter whether it is Forex or stocks – regulations are inherent and it is impossible to escape from them. Different countries have different requirements when it comes to regulations and there are no exceptions. In some countries, trading markets are regulated strictly, while others have a more liberal approach towards the issue.

How have the regulations impacted the trading markets? What is the general overview of trading in various states? Let’s have a look at these issues more comprehensively in the article below.

US Market Regulations and Trading Markets

We will be paying more attention to the United States as the country has a lot of things to be aware of. The stock market in the US is pretty tightly self-regulating. Exchanges set high requirements for companies going to IPO, and, in general, for all market participants. For example, the NYSE makes the following requirements for the distribution of shares on its platform: shareholders of a full lot (consisting of a package of 10, 50, 100 and another number of shares) must be ≥5,000 worldwide, and the price of one share is at least $4.

In addition, the activities of the exchanges are controlled by a number of organizations: the US Congress, the Securities and Exchange Commission (SEC), the US National Association of Broker-Dealers.

As for Forex trading, the country does not have strict requirements, but the brokers existing in the state must be in compliance with regular terms and conditions. According to – a website which is famous for providing guides and different material about regulations and various brokers, FX trading is one of the most popular activities in the United States. However a lot of brokers fail to meet the compliance requirements, which often results in the main regulator of the country banning them permanently.

Securities Investor Protection Corporation (SIPC) protects the investor from off-market risks and the negative consequences of a broker’s bankruptcy. If the broker goes bankrupt, the investor’s securities are retained and transferred to another brokerage account. So you don’t have to worry – your funds will be protected in the US trading markets as well.

If you want to buy foreign securities. you will be protected by the law: the activities of stock exchanges are regulated by the Central Bank.

Benefits of the American Stock Market

Trading on the New York Stock Exchange (NYSE) is one of the largest in the world in terms of turnover. The American stock market is an extremely liquid market with a huge variety of securities: more than 12,000 tradable instruments, 5,000 ETFs, a reliable system of government regulation and investor protection, an effective fight against manipulation, and a transparent system of information disclosure by issuing companies.

The American stock market, as the most developed and liquid one, is the main trading platform for world leading companies. Quotes on NYSE or NASDAQ are a sign of high-quality management of the issuer, world recognition and high financial performance. This is the market where the best are quoted: it attracts capital and companies from all over the world.

The leading trends, the highest technologies are concentrated on the American stock exchanges, and all the most successful and well-known investors in the world buy shares here.

Access to the US Stock Market and Leading World Exchanges

Reliable access to trading on the US stock market and on the world’s leading stock exchanges is one of the most important characteristics of the United States.Unlimited investment opportunities and decent service is worth mentioning: shares from the S & P500 (Apple, Google, Microsoft, Coca-Cola, Disney, Amazon, Facebook, etc.), more than 5,000 non-index securities, and the largest companies in the world, European blue chips, several thousand ETFs, as well as a wide range of liquid financial derivatives.

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