Intermarket Surveillance Group – Definition

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Intermarket Surveillance Group (ISG) Definition

The Intermarket Surveillance Group (ISG) serves to disperse information to regulators and security exchanges in various states and countries. It comprises over fifty organizations from various parts of the world. This group was established by US exchanges in 1981. The financial regulators comprising its member countries hail from Asia, North America, Australia, Europe, and the Middle East. Apart from its financial regulators, ISG also has securities and futures exchanges.

A Little More on the Intermarket Surveillance Group

This group oversees the activities of the financial market and also spots cases of fraud in the market. The outcome is distributed to the group members and this enables the specific member to investigate and act based on the fraud incident.

An obligatory rule is information sharing amongst members and as a prerequisite to attaining membership, local regulations should not obstruct information sharing. This group converges at least twice a year. Confidentiality within the group is utmost in terms of information and this information should function for regulatory monitoring.

This organization has progressed since 1990 when it successfully developed for non-US exchanges, an affiliate membership. Since this development, there has been a continuous addition of markets as affiliates, as well as, the addition of more exchanges. Intermarket Surveillance Group is not a rule creation body neither is one that punishes offenders. It solely shares the information to the local regulators who are members of this group. These local regulators engage in the monitoring and investigation of financial market activities that are questionable.

The scope of ISG shifted from monitoring only the US market to markets all over the world when they stopped differentiating full-time members from affiliates in 2008.

In order to simplify the monitoring of the global market, sub-groups were created and they comprise Membership, Derivatives, Surveillance, Practices, Forum and Events, and US Members, and also Non-US Members.

References for the Intermarket Surveillance Group

Academic Research on the Intermarket Surveillance Group

  • •    Summary of selected actions by NASD, April-June 2007, Davis, H. A. (2007). Journal of Investment Compliance, 8(3), 79-94. This research work aims at providing excerpts of specific actions of NASD with reference to the months of April, May, and June 2007. Frequently asked NASD questions, NASD reporting requirements on Trade and other regulatory reports serve as the methodology used for the paper. Its findings are regulatory trends that are very useful. In terms of originality and value, direct excerpts are developed for the easy comprehension of the reader, as well as indications of regulatory trends.
  • •    New Rules and Regulations, Katsoris, C. N., Lindsey, R., McSweeney, R., Lopez, E., Simaan, Y., & Fleishmann, E. (1998). Fordham Journal of Corporate & Financial Law, 3(1), 36. This article is based on the new rules and regulations related to finance.
  • •    The Global Stock Market: Implications to American Investors, Giordano, A. (2002). This work focuses on the intricacies of the global stock market and the implications it has on American investors. There are tons of options for investors residing in industrialized nations as they are not limited to only checking and savings accounts. They have options ranging from stocks which can be purchased globally, mutual funds, bonds, CDs, annuities, retirement plans and much more. With the numerous options available, it becomes difficult to choose the perfect tool needed for investing their funds.
  • •    DISTRIBUTION STATEMENT”!”-Approved for public release; Distribution Unlimited, Markey, E. J. (1992).  This article is a distribution statement which was approved for public release. Of recent, in an international stock swindle, investors in over forty-five countries have been scammed. These investors have been swindled of an estimated sum of over $150 million. Individual regulators might not have succeeded in catching the perpetrators due to the fact that they never shared details with their foreign partners. The United States and foreign regulators use information sharing as their vital weapon against unscrupulous individuals who disperse their activities to other countries. GAO was asked to determine how much information is shared, existing impediments in information sharing and much more.
  • •    ICT adoption and financial markets: A study of the leading stock exchange markets in Africa, Okwu, A. T. (2015). Journal of Accounting and Management, 5(2), 53-76.This research work explores the resultant effects of adopting ICT on the Johannesburg and Nigerian Stock Exchange markets. This article pays attention to the two leading stock exchange markets present in Africa. Based on the findings, adopting ICT had many effects during the period of study. The effect was negative on market indices with the exception of capitalization. It was concluded that ICT is essential to the growth and development of Africa’s financial markets and stock exchange.


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