Official Vigilance Supervision of the Market

The function of the vigilance and supervision of the stock exchange markets and of the people and institutions (investors, intermediaries, securities issuing companies, etc) related to the stock exchange environment is given to an independent and specific organism. In the American case the one in charge is the securities and exchanges commissions (SEC), in the case of the English is the securities and investments board (SIB9 and in Spain is “La Comisi?n Nacional del Mercado de Valores (CNMV).

It’s an institution of public rights, with its own legal personality that also has the faculty of sanctioning according to what is established in the laws.

The competence of this organism are ample, you can distinguish them between general function and specific functions.

General Functions
To inspect the markets and to sanction when needed

  • To watch for the transparency of the markets. In this sense, they have to control the use of privileged information.
  • To make everyone obey the rules of conduct established by those who intervene in different operations.
  • To promulgate, through bulletins, the necessary dispositions for the well development and execution of norms dictated for the sake of law.
  • To watch the correct formation of the prices
  • To give advice about stock exchange matters to the management.
  • To promote the diffusion of information in reference to the security market.
  • To protect the investors and other individuals that participates in the operations.

Specific Functions
To verify the fulfillment of all the requisites required for the issuing and admission of the securities to the official quotations.

To determine the category of each and every one of the negotiable securities.

To receive the information of acquisition and transmission of participants on companies admitted to quotation.

To examine the fulfillment of the requisites for the intermediaries of the market to be accepted as members of the stock exchange market and to propose its authorization.

To decide the suspensions and exclusions fro the official quoting.

Beginner Money Investing Special Security Negotiations The Second Market Official Vigilance and Supervision of the Market