ABSTRACT
In the UK the SIB in effect delegates a great deal of its regulatory functions to those “self-regulating organisations” it “recognises” as providing investor protection equivalent88 to that provided by itself. In the US the SEC has a similar power to “register” both national securities exchanges and associations of securities dealers if their rules fulfil certain criteria as to investor protection. The US courts have never doubted that for the purposes of deciding if a violation gives rise to a private civil claim, the rules of national securities exchanges and the National Association of Securities Dealers (NASD) are to be treated as federal statutes. The Colonial case, and subsequent case law, make no distinction between the rules of registered national securities exchanges and the NASD. The private right of action for violations of securities regulation law has always had and continues to have198 an important enforcement role to play in US federal law.
