Which regulatory body is responsible for overseeing securities transactions?

The Securities and Exchange Commission (SEC) is the regulatory body primarily responsible for overseeing securities transactions in the United States. Established to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, the SEC plays a crucial role in regulating the securities industry. It oversees the securities exchanges, which includes enforcing securities laws, regulating broker-dealers, and imposing rules and regulations that govern securities offerings and trading practices.

The SEC is tasked with ensuring transparency in financial reporting and overseeing disclosure of important financial information, which is vital for maintaining public confidence in the markets. Their authority includes monitoring the actions of market participants to prevent fraud and market manipulation, making them essential to the integrity of the securities markets.

Although the other regulatory bodies mentioned have important functions, they operate in different spheres. The Federal Reserve Board regulates monetary policy and supervises banking institutions. The Commodity Futures Trading Commission oversees futures and options markets, which are separate from the securities markets governed by the SEC. The Federal Deposit Insurance Corporation focuses on insuring deposits in banks and thrift institutions, thus protecting depositors rather than overseeing securities transactions.