• A self-regulatory organization (SRO) is an organization that has the right to establish industry standards and rules on its own.
  • Effective SROs are able to set standards and enforce those standards for their members.
  • While SROs may be privately owned, the government can still dictate broader policies to them.
  • Industries can merge and create their own SOs, allowing them to remain competitive and secure in the absence of government oversight.
  • Examples of financial SROs include FINRA and the New York Stock Exchange (NYSE).