Self-regulatory organization (SRO)

All securities and commodities exchanges in the United States are self-regulatory organizations (SROs), as is NASD.

These bodies establish the standards under which their members conduct business, monitor the way that business is conducted, and enforce their own rules.

For example, the New York Stock Exchange (NYSE) requires that client orders delivered to the floor of the exchange be filled before orders that originate with traders on the floor, who buy and sell for their own accounts.