Securities Industry Association

The Securities Industry Association (SIA) is a professional trade organization that represents organizations that are licensed to participate in the securities industry. The association's membership is vast and includes securities entities such as brokers, dealers, exchanges, investments firms, investment counselors, mutual funds, and many others that are involved in securities transactions. The SIA was established in 1972 through the merger of the Association of Stock Exchange Firms (1913) and the Investment Banker's Association (1912), and the SIA recently merged with the Bond Market Association as well. The SIA is a trade association of nearly 800 securities firms. SIA members—including most NYSE member organizations, major firms, Canadian exchanges, the OTC market, investment banks, broker-dealers, and mutual fund companies—are active in all U.S. and foreign markets and engaged in all aspects of corporate and public finance. Membership is open to all qualifying entities on a nondiscriminatory basis. In the United States, SIA members collectively account for approximately 90%, or $100 billion, of securities firms' revenues and employ about 350,000 individuals. They manage the accounts of more than 50 million investors directly and tens of millions of investors indirectly through corporate, thrift, and pension plans. In 2005, the industry generated an estimated $322.4 billion in domestic revenue and an estimated $474 billion in global revenues.

U.S. securities markets are the most transparent, liquid, and dynamic in the world. New forms of competition, technological advances, globalization, and broader investor participation have driven phenomenal changes in the capital markets and the securities industry over the past three decades. U.S. securities markets are grounded on the foundation of a structural framework. Self-regulation—and the historical level of member cooperation in particular—has been a key ingredient in the longevity of this framework. For example, the extensive expertise of members and their involvement in the rule-making process has undoubtedly led to more effective, less costly self-regulatory rules. Members of the regulatory community have noted that self-regulation has been viewed as having certain advantages over direct governmental regulation because industry participants bring to bear expertise and intimate knowledge of the complexities of the securities industry.

SIA provides much of the leadership for Wall Street firms in Washington, D.C., as a representative of the industry on securities and financial services issues. It actively engages in testifying on Capitol Hill before various committees on issues that affect the securities industry. It prepares position papers and presents them at conferences to crystallize issues that will affect the capital markets and plays a significant role in contributing to the development of proactive policies that help perpetuate the longevity and integrity of the securities markets.

Also, SIA takes a progressive role in other related issues affecting the financial services industry. It provides policy guidance to both federal and state policy makers in the following areas. The association has provided specific policy guidance on issues pertaining to savings and retirement, financial services, tax, securities, international transactions, treaties, and privacy. It regularly issues press releases on various actions that the executive, legislative, and administrative agencies take that affect the financial services industry. For example, on May 11, 2006, SIA issued a press release praising the U.S. Senate for extending capital gains and dividend tax rates. SIA is an active voice for its members on issues that affect the longterm interest of financial services in the United States and abroad. Last, SIA-PAC is a federally registered political action committee for the SIA. Its primary focus is to participate financially in the election of candidates to the U.S. Congress who are committed to preserving the sound economic policies on which the securities industry is built.

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