The US Securities and Exchange Commission (SEC) is examining the plan submitted by the operator and a green signal will put an end to self-regulatory organizations (SROs) status of exchanges, as reported by Reuters.
Since 2006, when the SEC granted permission to Nasdaq to operate as a securities exchange, the bourse house has been outsourcing most if its equity market regulatory works to FINRA.
In a SEC filing dated 12 August 2013, Nasdaq said that it is looking to assume the surveillance of trading on its exchange and expected switching of the duties to be completed 45 days after the filing.
However, it will remain leveraging FINRA for cross-market surveillance, which incorporates data from exchanges run by NYSE Euronext.
Nasdaq was negotiating with FINRA over the past nine months on the transition plan. SIFMA, the largest US securities trade group, has also requested the SEC to end the SRO status of stock exchanges.
The exchange operator said that its expertise in its own market structure as well as continued screening of these activities in real-time would allow to effectively identifying improper activity on its market.
If any violations of securities regulations come in light after screening of surveillance alerts, the same will be referred to FINRA.
