The self-regulatory organizations for the securities industry, NYSE Regulation, Inc. and the Financial Industry Regulatory Authority (FINRA) have signed an agreement with ten U.S. exchanges to strengthen investor protection by consolidating the surveillance, investigation, and enforcement of insider trading in equity securities. Under the agreement, each exchange gives responsibility for the detection of insider trading to the NYSE Regulation for New York Stock Exchange and NYSE Arca-listed securities, and to FINRA for Amex- and NASDAQ-listed securities, no matter where trading occurs in the United States.
Market centers participating in the agreement, which has been filed with the Securities and Exchange Commission (SEC ), are the American Stock Exchange, Boston Stock Exchange, CBOE Stock Exchange, Chicago Stock Exchange, International Securities Exchange, NASDAQ Stock Market, National Stock Exchange, New York Stock Exchange, NYSE Arca, Philadelphia Stock Exchange, and FINRA. "This breakthrough agreement will allow NYSE Regulation and FINRA to implement across markets their state of the art insider trading surveillance and investigation programs for all listed securities in the United States," said Richard G. Ketchum, chief executive officer, NYSE Regulation, and chairman, FINRA, in a press release. "A focused, consolidated review strengthens our ability to prevent anyone from profiting from insider information," he added.