What is the primary regulatory body of the securities industry?

The correct answer is the SEC (Securities and Exchange Commission), which serves as the primary regulatory body of the securities industry. The SEC was established to protect investors, maintain fair and efficient markets, and facilitate capital formation. It oversees the securities exchanges and the activities of securities firms, ensuring that they act in accordance with established laws and regulations. The SEC is responsible for enforcing securities laws, regulating the securities industry, and ensuring that public companies disclose important financial information, allowing investors to make informed decisions.

Other organizations mentioned, such as the CBOE (Chicago Board Options Exchange), the MSRB (Municipal Securities Rulemaking Board), and FINRA (Financial Industry Regulatory Authority), play significant roles in the oversight and regulation of specific areas within the securities industry, but they do not have the comprehensive regulatory authority that the SEC possesses. The CBOE primarily focuses on options trading, the MSRB governs the municipal securities market, and FINRA is a self-regulatory organization that supervises brokerage firms and exchange markets, but all these entities operate under the broader umbrella established by the SEC.