Which Of The Following Are National Securities Exchanges That Must Register With The Sec?

1934 U.South. legislation establishing rules and regulatory bodies for fiscal markets

Securities Exchange Act of 1934
Citations

Long title	An human action to provide for the regulation of securities exchanges and of over-the-counter markets operating in interstate and foreign commerce and through the mails, to prevent inequitable and unfair practices on such exchanges and markets, and for other purposes.
Nicknames	Securities Exchange Human action Exchange Act 1934 Human activity '34 Human action
Enacted by	the 73rd United States Congress
Public law	Pub.L. 73–291
Statutes at Large	48 Stat. 881
Codification
Titles amended	15 U.Southward.C.: Commerce and Trade
U.Due south.C. sections created	15 U.Due south.C. § 78a et seq.
Legislative history
Signed into constabulary by President Franklin D. Roosevelt on June 6, 1934
Major amendments
Dodd–Frank Wall Street Reform and Consumer Protection Deed Economic Growth, Regulatory Relief and Consumer Protection Human activity
The states Supreme Courtroom cases
Silver v. Northward.Y. Stock Exch., 373 U.Due south. 341 (1963) TSC Indus. v. Northway, 426 U.S. 438 (1976) Chiarella 5. Us, 445 U.S. 222 (1980) Basic Inc. v. Levinson, 485 U.Southward. 224 (1988) Central Bank of Denver v. First Interstate Bank of Denver, 511 U.Southward. 164 (1994) Plaut v. Spendthrift Subcontract, Inc., 514 U.S. 211 (1995) Wharf Holdings 5. United Int'50 Holdings, 532 U.S. 588 (2001) Dura Pharm. five. Broudo, 544 U.Due south. 336 (2005) Stoneridge Inv. Partners v. Scientific-Atlanta, 552 U.S. 148 (2008) Matrixx Initiatives v. Siracusano, 563 U.S. 27 (2011) Halliburton Co. v. Erica P. John Fund, No. xiii-317, 573 U.S. ___ (2014) Salman v. United States, No. xv-628, 580 U.Due south. ___ (2016) Liu 5. Securities and Exchange Commission, No. 18-1501, 591 U.S. ___ (2020)

The Securities Commutation Deed of 1934 (also called the Substitution Human activity, '34 Act, or 1934 Act) (Pub.L. 73–291, 48 Stat. 881, enacted June six, 1934, codification at 15 U.S.C. § 78a et seq.) is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America.^[1] A landmark of wide-ranging legislation, the Act of '34 and related statutes course the basis of regulation of the financial markets and their participants in the United States. The 1934 Act likewise established the Securities and Commutation Committee (SEC),^[2] the agency primarily responsible for enforcement of United states federal securities law.

Companies enhance billions of dollars by issuing securities in what is known every bit the primary market. Contrasted with the Securities Act of 1933, which regulates these original issues, the Securities Commutation Human action of 1934 regulates the secondary trading of those securities between persons often unrelated to the issuer, often through brokers or dealers. Trillions of dollars are fabricated and lost each yr through trading in the secondary market.

Securities exchanges [edit]

One area subject to the 1934 Deed's regulation is the physical place where securities (stocks, bonds, notes of debenture) are exchanged. Here, agents of the exchange, or specialists, act as middlemen for the competing interests in the buying and selling of securities. An of import function of the specialist is to inject liquidity and price continuity into the marketplace. Some of the more well known exchanges include the New York Stock Substitution, the NASDAQ and the NYSE American.

Securities associations [edit]

The 1934 Act besides regulates broker-dealers without a condition for trading securities. A telecommunications infrastructure has adult to provide for trading without a concrete location. Previously these brokers would find stock prices through newspaper printings and conduct trades verbally by telephone. Today, a digital information network connects these brokers. This organisation is chosen NASDAQ, standing for the National Association of Securities Dealers Automated Quotation Arrangement.

Cocky-regulatory organizations (SRO) [edit]

In 1938 the Exchange Human activity was amended by the Maloney Human action, which authorized the germination and registration of national securities associations. These groups would supervise the deport of their members subject area to the oversight of the SEC. The Maloney Act led to the cosmos of the National Association of Securities Dealers, Inc. – the NASD, which is a Self-Regulatory Organisation (or SRO). The NASD had primary responsibility for oversight of brokers and brokerage firms, and later, the NASDAQ stock market place. In 1996 the SEC criticized the NASD for putting its interests equally the operator of NASDAQ ahead of its responsibilities as the regulator, and the organization was split in ii, 1 entity regulating the brokers and firms, the other regulating the NASDAQ market. In 2007, the NASD merged with the NYSE (which had already taken over the AMEX), and the Financial Manufacture Regulatory Authority (FINRA) was created.

Other trading platforms [edit]

In the last 30 years,^{[ timeframe? ]} brokers accept created 2 additional systems for trading securities. The alternative trading system, or ATS, is a quasi substitution where stocks are usually purchased and sold through a smaller, private network of brokers, dealers, and other market participants. The ATS is distinguished from exchanges and associations in that the volumes for ATS trades are comparatively depression, and the trades tend to be controlled past a pocket-size number of brokers or dealers. ATS acts as a niche market, a private puddle of liquidity. Reg ATS, an SEC regulation issued in the tardily 1990s, requires these small markets to 1) register every bit a broker with the NASD, 2) register as an exchange, or 3) operate as an unregulated ATS, staying under low trading caps.

A specialized form of ATS, the Electronic Communications Network (or ECN), has been described as the "black box" of securities trading. The ECN is a completely automatic network, anonymously matching buy and sell orders. Many traders use i or more trading mechanisms (the exchanges, NASDAQ, and an ECN or ATS) to consequence large buy or sell orders – conscious of the fact that overreliance on one market for a big trade is likely to unfavorably alter the trading price of the target security.

Issuers [edit]

While the 1933 Act recognizes that timely information about the issuer is vital to effective pricing of securities, the 1933 Deed's disclosure requirement (the registration statement and prospectus) is a ane-time matter. The 1934 Act extends this requirement to securities traded in the secondary market place. Provided that the company has more than than a certain number of shareholders and has a certain amount of assets (500 shareholders, above $ten 1000000 in assets, per Act sections 12, xiii, and 15), the 1934 Act requires that issuers regularly file company information with the SEC on certain forms (the annual 10-K filing and the quarterly 10-Q filing). The filed reports are bachelor to the public via EDGAR. If something material happens with the company (change of CEO, change of auditing business firm, destruction of a significant number of company avails), the SEC requires that the company effect inside four business days an 8-Grand filing that reflects these changed weather condition (see Regulation FD). With these regularly required filings, buyers are better able to assess the worth of the company, and buy and sell the stock co-ordinate to that information.

Antifraud provisions [edit]

While the 1933 Act contains an antifraud provision (Section 17), when the 1934 Human activity was enacted, questions remained about the reach of that antifraud provision and whether a private right of activity—that is, the right of an private individual denizen to sue an issuer of stock or related market actor, as opposed to regime suits—existed for purchasers. Equally it developed, section 10(b) of the 1934 Act and respective SEC Rule 10b-5 accept sweeping antifraud language. Department 10(b) of the Act (as amended) provides (in pertinent role):

Information technology shall exist unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of whatever facility of whatsoever national securities exchange ...

(b) To use or use, in connection with the buy or auction of whatsoever security registered on a national securities substitution or any security not and so registered, or whatever securities-based swap agreement (as divers in section 206B of the Gramm–Leach–Bliley Act), whatsoever manipulative or deceptive device or contrivance in contravention of such rules and regulations every bit the Commission may prescribe every bit necessary or appropriate in the public interest or for the protection of investors.

Section 10(b) is codified at 15 United states of americaC. § 78j(b).

The breadth and utility of section 10(b) and Dominion 10b-five in the pursuit of securities litigation are pregnant. Rule 10b-5 has been employed to cover insider trading cases, but has also been used against companies for cost fixing (artificially inflating or depressing stock prices through stock manipulation), artificial visitor sales to increase stock price, and even a company's failure to communicate relevant information to investors. Many plaintiffs in the securities litigation field plead violations of section 10(b) and Rule 10b-5 every bit a "catch-all" allegation, in addition to violations of the more than specific antifraud provisions in the 1934 Act.

Exemptions from reporting because of national security [edit]

Section thirteen(b)(3)(A) of the Securities Substitution Act of 1934 provides that "with respect to matters concerning the national security of the Us", the President or the head of an Executive Branch bureau may exempt companies from certain critical legal obligations. These obligations include keeping authentic "books, records, and accounts" and maintaining "a system of internal accounting controls sufficient" to ensure the propriety of financial transactions and the preparation of financial statements in compliance with "generally accepted accounting principles".

On May five, 2006, in a notice in the Federal Annals, President Bush delegated potency nether this section to John Negroponte, the Manager of National Intelligence. Assistants officials told Concern Week that they believe this is the first time a President has e'er delegated the say-so to someone outside the Oval Part.^[three]

Amendments [edit]

Proposed [edit]

The Small Cap Liquidity Reform Act of 2013 (H.R. 3448; 113th Congress) would amend the Securities Exchange Act of 1934 to establish a liquidity pilot programme for securities of emerging growth companies (EGC) with total annual gross revenues of less than $750 million, nether which those securities shall be quoted using either: (1) a minimum increment of $0.05, (ii) a minimum increment of $0.ten, or (3) the increment at which the securities would be quoted without regard to such minimum increments.^[four] ^[5] The bill was scheduled to receive a vote on the House floor on February xi or 12, 2014.^[six]

Meet also [edit]

References [edit]

^ Lin, Tom C. W. (April 16, 2012). "A Behavioral Framework for Securities Risk". Seattle University Law Review. Rochester, NY. 34: 325. SSRN 2040946.
^ Cox, James D.; Hillman, Robert W.; Langevoort, Donald C. (2009). Securities Regulation: Cases and Materials (sixth ed.). Aspen Publishers. p. eleven.
^ "Intelligence Czar Tin can Waive SEC Rules". BusinessWeek. May 23, 2006. Archived from the original on May 25, 2006. Retrieved October nine, 2007.
^ "H.R. 3448 - Summary". United states of america Congress. Retrieved Feb ten, 2014.
^ Lebrecht, Brian (November 21, 2013). "Want More Liquidity? Cull to Increase the Spread". ClydeSnow Securities Blog. Archived from the original on February 24, 2014. Retrieved Feb 10, 2014.
^ "Week of Feb x, 2014" (PDF). Leader's Weekly Schedule. House Majority Leader's Function. Archived from the original (PDF) on February 22, 2014. Retrieved February ten, 2014.

External links [edit]

Securities Commutation Act of 1934, as amended, in HTML/PDF/details in the GPO Statute Compilations drove
United States Securities and Exchange Committee (SEC) – Official site
Introduction to the Federal Securities Laws
Securities Lawyer's Deskbook – Securities Exchange Human activity of 1934. University of Cincinnati College of Police force.
Public Police 73-291, 73d Congress, H.R. 9323: Securities Exchange Act of 1934