Which federal agency oversees the national securities markets?

The Securities and Exchange Commission (SEC) is the agency responsible for overseeing the national securities markets. Its primary functions include protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. The SEC enforces federal securities laws and regulates securities firms, exchanges, and brokers, ensuring transparency and preventing fraud in the buying and selling of stocks, bonds, and other securities.

This regulatory authority is critical for maintaining investor confidence and ensuring that market participants adhere to established rules and regulations. By providing oversight, the SEC helps to prevent fraudulent activities and ensures that the market operates fairly for all investors, large and small.

Other agencies mentioned have different roles that do not specifically pertain to the oversight of the national securities markets. For instance, the Federal Reserve System primarily deals with monetary policy and regulating banks, the Department of Treasury manages federal finances and economic policy, while the Commodity Futures Trading Commission focuses on the regulation of futures and options markets, which although related to financial markets, is distinct from the securities markets that the SEC oversees.