Regulation

Market Manipulation: SEC Definition and Common Schemes SEC definition of market manipulation, pump-and-dump vs spoofing vs layering schemes, and how regulators identify and prosecute them.

Markets in Crypto-Assets Regulation EU regulatory framework (MiCA) for crypto-asset issuers, exchanges, and custodians; establishes licensing, disclosure, and operational standards.

Marking the Close Prohibition SEC rule banning trades executed near or at the market close specifically to influence the official closing price.

Material Non-Public Information and Information Barriers How firms implement material non-public information compliance controls—restricted lists, grey lists, and physical walls—to prevent illegal trading on insider knowledge.

Material Nonpublic Information: SEC Rules and Boundaries Learn what counts as material nonpublic information under SEC rules, how insiders and traders are restricted, and the legal line between research and insider trading.

Materiality Standard in Securities Law The legal threshold—substantial likelihood of swaying a reasonable investor—that determines which omissions and misstatements trigger disclosure obligations.

Materiality Thresholds in Compliance Violations How materiality thresholds determine when a compliance violation becomes reportable or material in securities regulation and firm disclosures.

MiCA Stablecoin Rules: What Issuers Must Do MiCA regulation stablecoin requirements: issuers must hold 1:1 reserves, allow fast redemptions, and obtain EU authorization. Details on compliance.

MiFID II MiFID II is the Markets in Financial Instruments Directive II, the European Union's overhaul of securities market regulation. It harmonizes trading rules, investor protection, and transparency across EU member states.

MiFID II Best Execution Requirements What MiFID II obliges investment firms to do when executing client orders, including pricing, timing, and the factors that define 'best execution.'

Minimum Quotation Size Rules for Market Makers Minimum quotation size rules require market makers to quote firm prices and stand ready to trade at a stated minimum number of shares, protecting retail liquidity.

Misappropriation Theory Insider trading liability for trading on confidential information obtained through breach of fiduciary duty.

Monetary Authority of Singapore Singapore's unified central bank and financial regulator combining monetary policy, banking supervision, and capital markets oversight.

Municipal Securities Rulemaking Board The self-regulatory organization that writes conduct and disclosure rules for brokers, dealers, and banks that trade municipal bonds.

Naked Short Selling Ban Prohibition on selling shares short without first borrowing them; a rule designed to prevent manipulation and ensure settlement integrity.

National Credit Union Administration US independent agency that charters, supervises, and insures deposits at federally chartered credit unions—serving around 100 million members.

National Futures Association Self-regulatory body overseeing US futures brokers, advisors, and commodity pool operators outside direct CFTC jurisdiction.

Nested Accounts in Correspondent Banking How third-party banks use correspondent relationships to access payment systems while evading direct oversight, creating AML-KYC compliance gaps and detection methods.

Nominee Shareholders and AML Risk Nominee shareholder money laundering risk: how nominee arrangements obscure beneficial ownership, triggering AML/KYC scrutiny and regulatory red flags.

OCC Bank Charter Types Explained The OCC oversees three charter types: national banks, federal savings associations, and federal branches of foreign banks, each with distinct regulatory obligations and privileges.

OCC Regulator The Office of the Comptroller of the Currency is a US federal regulator that supervises national banks and federal thrift institutions.

OCC vs FDIC: Which Agency Supervises Your Bank The OCC charters and supervises national banks; the FDIC insures deposits and supervises state non-member banks. Understand the dual-banking system and regulatory overlap.

Odd-Lot Trading Rules How trades in fewer than 100 shares are treated differently from round lots under stock exchange rules and Reg NMS, affecting price discovery and best-execution analysis.

OECD Pillar Two Global Minimum Tax How the OECD Pillar Two 15% global minimum corporate tax applies to multinationals, the income-inclusion rule, and which groups are in scope.

Office of Credit Ratings The SEC division that oversees rating agencies, enforces conflict-of-interest disclosure rules, and examines compliance with Dodd-Frank constraints.

Office of Financial Research Treasury bureau that collects systemic-risk data and conducts macroprudential research to support the Financial Stability Oversight Council.

Office of Foreign Assets Control The US Treasury office administering economic sanctions against foreign countries, entities, and individuals to advance American foreign policy.

Office of the Comptroller of the Currency The OCC is the primary federal regulator of national banks in the United States. It grants bank charters, sets prudential standards, and enforces laws against fraud and unsafe practices.

Order Audit Trail System (OATS) and Its Replacement by CAT FINRA's order audit trail system (OATS) required broker-dealers to record all orders, trades, and cancellations; it was replaced by the SEC's CAT in 2021.

Passporting Rights in EU Financial Services How EU passporting rights allow financial firms to offer services across member states without separate licences, and the effects of Brexit.

Pattern Day Trader Rule and the $25,000 Minimum FINRA's pattern day trader rule requires a $25,000 minimum account balance; learn what triggers the rule, why the threshold exists, and trading restrictions.

Payment for Order Flow Disclosure Regulatory rules requiring brokers to disclose compensation received for routing customer orders to dealers and market makers.

Penny Stock Rule 15g-9 Explained Penny stock rule 15g-9 mandates broker-dealer suitability checks, disclosure of risks, and account approval before selling penny stocks to retail investors.

Perpetual KYC vs Periodic Review How the traditional KYC refresh cycle compares to perpetual-KYC models that monitor customer data continuously, and the compliance and technology tradeoffs of each approach.

Personal Account Dealing Policy at Financial Firms How financial firms use personal account dealing policies, pre-clearance windows, and blackout periods to prevent employee front-running and conflicts of interest.

Politically Exposed Person The PEP designation that triggers heightened scrutiny for customers and family members with high-ranking government or military positions due to corruption risk.

Position Limit Regulations Rules capping the maximum size of positions traders can hold, designed to prevent market manipulation and excessive concentration.

Pre-Clearance Requirement Internal compliance rule requiring employees to obtain prior approval before trading securities in their personal accounts.

Pre-Trade Transparency Requirements in US Equity Markets Pre-trade transparency requirements mandate displaying firm bid-ask quotations publicly before execution. They exclude block trades and dark pools.

Private Placement Memorandum The offering document used in Regulation D deals, carrying disclosure obligations despite the registration exemption.

Prospectus Directive European Union regulation requiring detailed public disclosure for securities offerings and listings across EU member states.

Prospectus Liability — Section 11 The strict liability rule allowing investors to sue every signatory of a registration statement for material misstatements or omissions, without proving the defendant knew the statement was false.

Proxy Rules — Regulation 14A SEC rules requiring public companies to disclose proxy materials and enabling shareholders to vote remotely on corporate governance matters.

Prudential Regulation Authority The Bank of England subsidiary that sets capital, liquidity, and prudential rules for UK banks, insurers, and investment firms.

Prudential Regulation vs Conduct Regulation: Key Differences Prudential regulation focuses on institutional solvency and stability; conduct regulation protects customers and market integrity. Both are essential to financial oversight.

PSD2 Strong Customer Authentication Explained How the EU's Payment Services Directive 2 requires two-factor authentication for online payments and which transactions are exempt.

Qualified Domestic Minimum Top-Up Tax Under Pillar Two Pillar Two's qualified domestic minimum top-up tax allows countries to tax profits locally at a global minimum rate. Learn how this mechanism captures revenue before the Income Inclusion Rule.

Qualified Institutional Buyer A qualified institutional buyer (QIB) is an institutional investor that meets asset thresholds and is presumed to have sufficient sophistication to invest in restricted securities under Rule 144A.

Quiet Period in an IPO: SEC Rules and Restrictions Quiet period in IPO: SEC rules restricting communications by underwriters and issuers around offering; statutory basis and enforcement consequences.

Record Retention Requirements Specific regulatory mandates governing how long financial firms must retain and archive communications, transactions, and supporting documentation.

Reg BI vs Fiduciary Standard: Key Differences Reg BI vs fiduciary standard difference: SEC's Regulation Best Interest broker standard vs. stricter investment-adviser fiduciary duty, which professionals are bound by each, and what it means for investors.

Reg NMS Access Fee Cap Explained Reg NMS Rule 610 caps exchange access fees at 30 cents per 100 shares. Learn how the 30-mil cap shapes market structure and order routing.

Reg NMS Order Protection Rule The SEC rule that prohibits brokers from routing trades at prices worse than the best publicly available bid or offer, enforcing best execution.

Reg NMS Trade-Through Rule Explained Reg NMS trade-through rule explained: the specific prohibition against bypassing better prices, which orders are exempt, and how it differs from broader order protection.

Reg SHO Locate Requirement The broker-dealer obligation to locate shares before executing a short sale under Reg SHO, including valid locate sources and exemptions.

Reg SHO Locate Requirement for Short Selling The SEC's Regulation SHO Locate Requirement mandates that brokers verify borrowable shares before executing short sales, reducing settlement failures and naked shorts.

Reg SHO Threshold Securities List Explained What stocks land on the SEC's reg SHO threshold securities list, and what close-out rules that creates for short sellers.

Regulation A Regulation A is an SEC exemption allowing companies to raise up to $75 million in a year using a simplified public offering (Reg A+) without full Securities Act registration.

Regulation A+ The SEC exemption allowing smaller issuers to raise capital up to $75 million with reduced disclosure requirements.

Regulation A+ Tier 1 vs Tier 2: Key Differences Compare Regulation A+ Tier 1 vs Tier 2: offering caps, blue-sky preemption, and ongoing reporting obligations that determine which path issuers should choose.