This article will investigate what principles should guide the Commission in allocating decision making authority over regulatory matters between itself and the SROs. When should the SEC initiate the resolution of issues? When should it merely oversee the efforts of the SROs in issue resolution? Finally, can specific market regulatory problems be analyzed pursuant to these principles to determine how decision making authority should be allocated? In addition to providing a model for answering these questions, the guidelines 4 developed in this article will also have relevance to the broader question of allocating decision making responsibility between the government and the private sector.
David A. Lipton, The SEC or The Exchanges: Who Should Do What and When? A Proposal to Allocate Regulatory Responsibilities for Securities Markets, 16 U.C. DAVIS L. REV. 527 (1983).