Regulatory Economics and Market Analysis (REMA)

The mission of Regulatory Economics and Market Analysis (REMA) is to elevate FINRA’s ability to make sound regulatory and policy decisions and foster innovation in regulation through best-in-class research and analysis.  Our work focuses on financial markets, market participants, products and services. REMA’s work informs FINRA’s rulemaking and regulatory policy agenda, identifies emerging regulatory risks, develops new methods to identify and measure customer harm and strengthens FINRA’s surveillance, examination and enforcement programs. REMA also monitors, assesses and reports on emerging market developments, including technologies impacting financial innovation for member firms and their investors.

Office of the Chief Economist (OCE)

OCE conducts research and analysis in support of FINRA’s rulemaking and policy agendas. OCE works closely with the Office of General Counsel (OGC) and other departments in assessing the economic implications of FINRA’s regulatory policies and programs. The Office also works collaboratively with FINRA’s Regulatory Operations (“RegOps”) teams to provide data, statistical and economic analyses to identify and estimate investor harm from rule violations, as well as identify and measure operational efficiencies in RegOps processes. 

  • OCE works to achieve its objectives through a variety of activities.
  • OCE gathers and analyzes data, develops new analytical approaches and methods and conducts research on registered persons, securities firms and the markets in which they operate to better understand the impacts of FINRA’s regulation. 
  • OCE cultivates relationships with researchers and other experts in academia and industry to enhance FINRA’s foundational knowledge. These collaborations may lead to special studies and reports, along with supporting the work of the Office.
  • OCE works closely with OGC on FINRA’s retrospective rule review program.  

OCE work product can be found in Regulatory Notices, surveys and in publications, including the Industry Snapshot, white papers and research working papers in academic and practitioner journals.

Office of Financial Innovation (OFI) 

The Office of Financial Innovation (OFI) assists FINRA in identifying emerging trends in the securities industry – including financial technology-related developments – and understanding how they impact investors, markets and FINRA’s regulatory programs.

OFI carries out its work through the activities of three teams. The Financial Innovation team collaborates with groups across FINRA to promote engagement with the industry, regulators, investors and other stakeholders on matters involving significant financial innovation. The Emerging Trends team collects, analyzes and disseminates information related to emerging risks and trends that may affect FINRA and its regulatory programs. Finally, the Blockchain Lab team serves as an incubator for blockchain technology-related regulatory initiatives. In addition, the Blockchain Lab helps build or source technology solutions to facilitate oversight of blockchain-related activities and serves as a resource for expertise on blockchain technology.

REMA Key External Work Products

Industry Snapshot

FINRA regulates a critical part of the securities industry – member brokerage firms doing business in the United States. To increase public awareness and understanding about the broad range of FINRA-registered firms and individuals, FINRA publishes an annual snapshot of some of the key data we collect in the course of our work. REMA leads a cross-FINRA team to design, develop and create the annual Industry Snapshot.

The FINRA Industry Snapshot provides a high-level overview of FINRA membership, ranging from the number of FINRA-registered individuals to the overall revenues of firms, and from trading activity to how firms market their products and services. All of the data are reported in aggregate to respect the confidentiality of regulatory information.

Research Notes

Publications

Working Papers

REMA Reports

Media

Press Releases

Blogs

Podcasts