The Securities and Exchange Commission (SEC) approved an updated plan between the Financial Industry Regulatory Authority (FINRA) and NYSE Arca, which aims to streamline regulatory responsibilities. This plan helps avoid the duplication of regulatory tasks for companies registered with both FINRA and NYSE Arca by specifying which organization will handle what aspects of regulation. The amendment removes certain rules from the plan and is designed to improve efficiency and reduce costs for regulated firms while ensuring investors are protected. The SEC declared the plan effective to promote better coordination between the two self-regulatory organizations.
Simple Explanation
The SEC said that two groups, FINRA and NYSE Arca, will share their work to make sure businesses are following the rules, so they don’t do the same work twice, helping them save money and making sure people who invest are protected.