Concept
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We will now examine the various institutions that influence, apply and oversee regulation within international financial markets. At this point it is necessary to understand that one institution can implement a regulation but is not necessarily the entity that supervises the regulation’s enforcement. For example, the creation of the Securities and Exchange Commission (SEC) was established in the Securities Exchange Act of 1934, in response to the poor financial practices which contributed to the Great Depression. The US Congress (a leg of the US legislature) established the SEC as well as the Act, but the US Congress does not oversee the implementation of the SEC’s regulations.
Below, when we speak about role players, we refer to pure regulators, pure oversight entities, and those entities that perform a mix of both regulation and oversight.