National Association of Securities Dealers (NASD)
The NASD is an industry organization that regulates the behavior of member securities dealers. In addition, it owns and operates Nasdaq, the automated quotation system for over-the-counter trading. The NASD derives its authority from the federal government, and every securities dealer in the country is required by law to be a member. In 1996 the SEC censured the NASD for falling down on the job of regulating members in connection with Nasdaq trading.