THE CAPITAL ADEQUACY REGULATION OF US BROKER‐DEALERS: A COMPARATIVE ANALYSIS — PART 1

Abstract

As financial markets across the world become more integrated, the potential for financial shocks to be transmitted both from one jurisdiction to another and from one financial sector to another increases. At the same time differences in national regulatory arrangements can be the source of important competitive distortions between financial institutions. Against this background national authorities have been seeking to coordinate the regulation of securities firms and of banks undertaking securities business. This paper, which is published in two parts, aims to clarify some of the policy issues arising from recent convergence initiatives by examining the US capital adequacy rules for US investment firms and contrasting the US approach with European securities regulation as formulated in the Capital Adequacy Directive. The second part of this paper will be published in the next issue of Journal of Financial Regulation & Compliance.

Citation

DALE, R. (1995), "THE CAPITAL ADEQUACY REGULATION OF US BROKER‐DEALERS: A COMPARATIVE ANALYSIS — PART 1", Journal of Financial Regulation and Compliance, Vol. 3 No. 1, pp. 11-27. https://doi.org/10.1108/eb024823