Skip to main content

Regulated Financial Instruments

Definition

Regulated financial instruments are investment products or contracts whose issuance, trading, and oversight are governed by specific legal and regulatory frameworks. These instruments, such as stocks, bonds, derivatives, and mutual funds, are subject to rules designed to protect investors, ensure market fairness, and maintain financial stability. Compliance with these regulations often involves disclosure requirements, licensing of market participants, and surveillance of trading activities. Their oversight provides market integrity.