Structure and powers of the American Securities and Exchange Commission

History of Establishment and Legal Framework

The U.S. Securities and Exchange Commission was established on June 6, 1934, as an independent government agency. Its creation followed the necessity to establish order in the financial markets and protect investors from fraudulent schemes. In early 2009, following the severe financial crisis of 2008, the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted. This document significantly expanded the powers of both the Securities and Exchange Commission itself and the Commodity Futures Trading Commission (CFTC).

Main Mission and Responsibility

The main task of the Securities and Exchange Commission is to protect investors' rights, ensure fairness in the markets, and facilitate the flow of capital into the economy. Its activities focus on regulating the American securities markets — stocks, bonds, and other instruments. A key principle of the agency's work is to ensure equal access for all market participants to relevant information before engaging in financial transactions.

The commission requires public companies to disclose all material financial data, allowing various categories of investors to make informed decisions based on the same set of information. Additionally, the agency systematically publishes educational materials and regular financial reports.

Control System and Information Support

To streamline access to corporate reporting, the Securities and Exchange Commission has developed the electronic database EDGAR (. This electronic system for collecting, analyzing, and searching data ) allows investors to easily obtain quarterly and annual reports of all registered and regulated companies.

The main areas of oversight include identifying market manipulation, preventing accounting fraud, and monitoring insider trading activities. The Securities Commission works closely with the CFTC, which focuses on regulating derivative markets, including options and futures contracts. The joint efforts of both agencies aim to combat illegal activities such as Ponzi schemes and financial pyramids.

Organizational Structure

As of 2024, the structure of the Securities Commission includes six main operational divisions. The Corporate Finance Department oversees the disclosure of information by companies. The Trading and Markets Department controls processes on stock and options exchanges. The Investment Management Department supervises funds and investment companies.

The Enforcement Department investigates violations and applies sanctions. The Economic Analysis and Risk Management Department conducts analytical research and assesses systemic risks. The Inspection Department carries out inspections and audits of controlled organizations to ensure compliance with established requirements.