is the sec an sro 
no the u s securities and exchange commission sec is a federal regulatory body created by an act of congress it is thus governed by federal securities laws and not membership based rules note that the sec oversees finra and acts as the first level of appeal for actions brought by finra the bottom lineself regulatory organizations sros set industry standards and regulations of their own accord though they provide standards and enforce them upon their members they are secondary to the standards and laws set by the government sros seek to protect all parties involved in the various fields in which they operate 