Vanderbilt Law Review

First Page



For over seventy years, the National Association of Securities Dealers ("NASD") was the principal self-regulatory organization ("SRO") responsible for the regulation and oversight of the U.S. securities market.' In 2000, working with the Securities and Exchange Commission ("SEC") and the New York Stock Exchange ("NYSE"), the NASD initiated a joint investigation into twelve investment firms that were allegedly "spinning" initial public, offerings. This sort of regulatory interplay between the NASD and the NYSE governed the industry until 2008, when self-regulatory power was further consolidated by a merger between the NASD and the regulatory arm of the NYSE. The resulting organization, the Financial Industry Regulatory Authority ("FINRA"), is now the dominant SRO in the securities industry.