One of the largest operators of the US stock options market, CBOE Holdings Inc, will reportedly relinquish its regulatory duties, shifting regulatory duties to the Financial Industry Regulatory Authority (FINRA).
FINRA administers a multitude of legal actions, helping provide market transparency through fines and legislation – last week FINRA issued a collective fine for two broker-dealers under common control, Wells Fargo Advisors (WFA) and Wells Fargo Advisors Financial Network (WFAFN) for $1.5 million.
Filling the Gap Between Brokers, LPs, and ClientsGo to article >>
In its latest move, FINRA was hired by CBOE’s Chicago Board Options Exchange and C2 Options Exchange for its regulatory oversight, whose partnership will extend towards the Options Regulatory Surveillance Authority (ORSA).
CBOE’s decision to enlist the help of FINRA comes a year after a $6 million penalty, payable to the US’ Securities and Exchange Commission (SEC), its first ever.