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Zorluk: OrtaRegulatory Entities and Self-Regulatory Organizations (SROs)

A retail investor opens a margin account at a registered broker-dealer to purchase exchange-listed corporate stocks. While self-regulatory organizations set ongoing maintenance margin levels, which regulatory entity holds the statutory authority to establish initial credit extension limits (Regulation T) for securities transactions?

  1. Federal Reserve Board (FRB)Cevap
  2. B
    Financial Industry Regulatory Authority (FINRA)
  3. C
    Securities Investor Protection Corporation (SIPC)
  4. D
    Depository Trust & Clearing Corporation (DTCC)

Cevap

The Federal Reserve Board (FRB)
The Federal Reserve Board (FRB) possesses statutory authority derived from the Securities Exchange Act of 1934 to govern credit extension by broker-dealers, establishing initial margin requirements for securities purchases under Regulation T.

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1
Identify the specific regulatory authority tested
The question asks for the entity responsible for setting initial margin requirements under Regulation T.
Margin requirements consist of initial credit rules set by federal statutory authority and ongoing maintenance requirements enforced by SROs.
2
Distinguish statutory agency powers from SRO rules and operational entities
The Federal Reserve Board (FRB) was granted statutory authority under the Securities Exchange Act of 1934 to regulate the extension of credit in the securities industry via Regulation T.
SROs like FINRA enforce rules and maintenance minimums ($2,000 equity or 25%), but the FRB governs the initial margin percentage (currently 50%).

Anahtar Kavram

Federal Reserve Board Margin Authority (Regulation T)
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Konular

Regulatory Entities and Self-Regulatory Organizations (SROs)

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