15 U.S.C. § 78e — Transactions on unregistered exchanges

Page 254 TITLE 15—COMMERCE AND TRADE § 78e (b) Reimbursements for cost of reports (1) Reimbursements required The Commission shall reimburse the Gov- ernment Accountability Office for the full cost of making the reports under subsection (a), as billed therefor by the Comptroller General. (2) Crediting and use of reimbursements Such reimbursements shall— (A) be credited to the appropriation ac- count ‘‘Salaries and Expenses, Government Accountability Office’’ current when the payment is received; and (B) remain available until expended. (Pub. L. 111–203, title IX, § 964, July 21, 2010, 124 Stat. 1910.) Editorial Notes CODIFICATION Section was enacted as part of the Investor Protec- tion and Securities Reform Act of 2010 and also as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and not as part of the Securities Ex- change Act of 1934 which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking. DEFINITIONS For definitions of terms used in this section, see sec- tion 5301 of Title 12, Banks and Banking. § 78e. Transactions on unregistered exchanges It shall be unlawful for any broker, dealer, or exchange, directly or indirectly, to make use of the mails or any means or instrumentality of interstate commerce for the purpose of using any facility of an exchange within or subject to the jurisdiction of the United States to effect any transaction in a security, or to report any such transaction, unless such exchange (1) is registered as national securities exchange under section 78f of this title, or (2) is exempted from such registration upon application by the ex- change because, in the opinion of the Commis- sion, by reason of the limited volume of trans- actions effected on such exchange, it is not prac- ticable and not necessary or appropriate in the public interest or for the protection of investors to require such registration. (June 6, 1934, ch. 404, title I, § 5, 48 Stat. 885.) Executive Documents TRANSFER OF FUNCTIONS For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title. § 78f. National securities exchanges (a) Registration; application An exchange may be registered as a national securities exchange under the terms and condi- tions hereinafter provided in this section and in accordance with the provisions of section 78s(a) of this title, by filing with the Commission an application for registration in such form as the Commission, by rule, may prescribe containing the rules of the exchange and such other infor- mation and documents as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of in- vestors. (b) Determination by Commission requisite to registration of applicant as a national securi- ties exchange An exchange shall not be registered as a na- tional securities exchange unless the Commis- sion determines that— (1) Such exchange is so organized and has the capacity to be able to carry out the pur- poses of this chapter and to comply, and (sub- ject to any rule or order of the Commission pursuant to section 78q(d) or 78s(g)(2) of this title) to enforce compliance by its members and persons associated with its members, with the provisions of this chapter, the rules and regulations thereunder, and the rules of the exchange. (2) Subject to the provisions of subsection (c) of this section, the rules of the exchange pro- vide that any registered broker or dealer or natural person associated with a registered broker or dealer may become a member of such exchange and any person may become as- sociated with a member thereof. (3) The rules of the exchange assure a fair representation of its members in the selection of its directors and administration of its af- fairs and provide that one or more directors shall be representative of issuers and investors and not be associated with a member of the exchange, broker, or dealer. (4) The rules of the exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. (5) The rules of the exchange are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable prin- ciples of trade, to foster cooperation and co- ordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in se- curities, to remove impediments to and per- fect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and are not designed to permit unfair dis- crimination between customers, issuers, bro- kers, or dealers, or to regulate by virtue of any authority conferred by this chapter mat- ters not related to the purposes of this chapter or the administration of the exchange. (6) The rules of the exchange provide that (subject to any rule or order of the Commis- sion pursuant to section 78q(d) or 78s(g)(2) of this title) its members and persons associated with its members shall be appropriately dis- ciplined for violation of the provisions of this chapter, the rules or regulations thereunder, or the rules of the exchange, by expulsion, sus- pension, limitation of activities, functions,