Traditional regulatory principles and practices are discussed, along with the rise of institutional stock investing and its effect on the efficiency and stability of the market. Customer complaints about unsettled trades led to the discovery of serious operational deficiencies among brokerage firms. Congress responded with legislation to protect investors, while at the same time expressing disappointment with the oversight of the Securities and Exchange Commission. The lesson of the 1960s and 1970s was that market order is not spontaneous and market rules will not adjust themselves. Authority must be exercised and traditional regulatory principles adapted to respond to the changing realities of the market. 45 footnotes.