Regulatory FrameworkQuestion 380 of 398
Which of the following best describes the jurisdiction of the Chicago Board Options Exchange (CBOE) as a self-regulatory organization?
a.It writes rules governing all municipal securities dealers
b.It supervises investment adviser registration nationwide
c.It operates an options exchange and enforces trading rules for its markets
d.It approves all broker-dealer registrations before FINRA
Explanation
The CBOE is a national securities exchange and self-regulatory organization focused on options trading and, through its exchange, enforces rules for trading on its markets. Exchanges like the CBOE and NYSE are SROs with jurisdiction over activity conducted on their platforms. FINRA and the MSRB handle broader member-firm and municipal rulemaking respectively.
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