/investing13-5bfc2b8f46e0fb0026016f4d.jpg "SIFMA (Security Industry/Financial Market Association) Definition 1")
What’s SIFMA (Safety Trade/Monetary Market Affiliation)?
The Securities Trade and Monetary Markets Affiliation (SIFMA) is a not-for-profit commerce affiliation that represents securities brokerage corporations, funding banking establishments, and different funding corporations. SIFMA represents corporations of all sizes in all monetary markets within the U.S. and across the globe. The group’s membership represents 80 % of the U.S. broker-dealer sector by income and 50 % of the asset administration sector as measured by property below administration.
Key Takeaways
- SIFMA is a commerce affiliation and shouldn’t be confused with authorities or regulatory businesses.
- The SIFMA Basis goals to coach those that might not be on the monetary literacy degree of their members.
- SIFMA provides two membership choices primarily based in your place throughout the {industry}.
- The group is classed as a 501(c)(6) group.
- SIFMA supplies industry-leading analysis publications.
Understanding SIFMA
Securities Trade and Monetary Markets Affiliation at the moment signify over 70% of U.S. monetary advisers. The members they signify have over $52 trillion within the mixed property, unfold between particular person buyers, funding corporations, endowments, pension funds, hedge funds, and institutional purchasers. These purchasers embrace mutual funds and retirement plans, in addition to banks and brokerage corporations.
The group’s members include greater than 263,000 professionals within the finance and banking industries. SIFMA members trade concepts and assist optimistic change on behalf of members and purchasers by collaborating in additional than 100 committees and sub-groups.
Committees deal with a variety of essential and well timed matters and challenges with a deal with priorities, considerations, and challenges confronted by these in particular markets or who deal with explicit merchandise, similar to municipal securities, derivatives, credit score markets and fairness capital markets.
- Compliance and authorized points
- Federal authorities relations
- Worldwide coverage
- Analysis and surveys
- State authorities procedures
- Communications.
Certainly one of SIFMA’s elementary targets is to reinforce the general public’s belief and confidence within the markets whereas delivering an environment friendly, enhanced member community of entry and forward-looking companies. The group additionally helps encourage a well-informed {industry} by offering premier academic sources for {industry} professionals and the buyers they serve.
SIFMA employees, members, and committees deal with a variety of pose points that have an effect on monetary {industry} professionals and their purchasers. A few of these points embrace market construction, tax reform, cyber-security, infrastructure, and issues involving senior buyers.
SIFMA has workplaces in New York and Washington, D.C., and is the U.S. regional member of the World Monetary Markets Affiliation (GFMA).
SIFMA Historical past
The formation of SIFMA by a merger of the 2 monetary {industry} associations occurred in 2007. It traces its origins again a lot additional, nonetheless. The group’s evolution dates again to 1912, with the formation of the Funding Bankers Affiliation of America.
The SIA would finally be part of with The Bond Market Affiliation in 2007, to kind what’s now SIFMA.
What Does SIFMA Stand For?
SIFMA stands for the Securities Trade and Monetary Markets Affiliation. They signify and advocate for monetary {industry} professionals.
What Is the SIFMA Price?
The quantity that SIFMA expenses for membership differs broadly primarily based on the kind of group you might be in, in addition to whether or not you’re a skilled group or a person consumer. They provide two membership plans: the Full Membership which is for broker-dealers, funding banks, and asset managers, and the Affiliate Membership which is for “different market individuals.”
What Is the SIFMA Take a look at?
The SIFMA check, known as the “industry-wide enterprise continuity check,” is a check that spotlight’s the monetary {industry}’s means to function by a major emergency utilizing backup websites, restoration amenities, and backup communications capabilities. The group believes all member corporations ought to take part yearly.
Is SIFMA a Regulator?
SIFMA just isn’t a regulatory company. They advocate for monetary professionals and supply insights into the market and though they could have feedback or present information in regards to the regulatory surroundings, they aren’t a regulator themselves.
What Is the SIFMA Basis?
The SIFMA Basis supplies monetary packages and instruments designed to coach these within the markets, no matter background. The Basis goals to strengthen financial alternative throughout communities and improve consciousness of the worldwide market. The Basis helps academics and key leaders within the subject. On the SIFMA Basis web site, you’ll be able to entry instruments and video games designed to extend consciousness and develop monetary literacy.
The Backside Line
SIFMA is a corporation that delivers monetary info with the intention to advocate on behalf of its various and educated membership base. Lots of their analysis publications are free on their web site and supply invaluable perception into particular person segments of the world’s economic system, in addition to a top-down overview of what’s going on throughout all securities and asset courses.