I

103D CONGRESS

2D SESSION H. R. 4745

To provide a framework for Securities and Exchange Commission supervision

and regulation of derivatives activities, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 13, 1994

Mr. MARKEY (for himself and Mr. SYNAR) introduced the following bill; which

was referred to the Committee on Energy and Commerce

A BILL

To provide a framework for Securities and Exchange Commission supervision and regulation of derivatives activities, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Derivatives Dealers

5 Act of 1994’’.

6 SEC. 2. DEFINITIONS.

7 Section 3(a) of the Securities Exchange Act of 1934

8 (15 U.S.C. 78c(a)) is amended by adding at the end the

9 following new paragraphs:
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1 ‘‘(53) The term ‘derivative’ means any financial

2 contract or other instrument that derives its value

3 from the value or performance of any security, cur4 rency exchange rate, or interest rate (or group or

5 index thereof), but does not include—

6 ‘‘(A) any security that is traded on a na7 tional securities exchange or on an automated

8 interdealer quotation system sponsored by a se9 curities association registered under section

10 15A of this title;

11 ‘‘(B) any forward contract which has a

12 maturity at the time of issuance not exceeding

13 270 days;

14 ‘‘(C) any contract of sale of a commodity

15 for future delivery, or any option on such a con16 tract, traded or executed on a designated con17 tract market and subject to regulation under

18 the Commodity Exchange Act; or

19 ‘‘(D) any deposit held by a financial insti20 tution.

21 ‘‘(54) The term ‘derivatives dealer’ means any

22 person engaged in the business of buying, selling, or

23 entering into derivatives for his own account, but

24 does not include—
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1 ‘‘(A) any person insofar as such person

2 buys, sells, or enters into derivatives for his own

3 account, either individually or in a fiduciary ca4 pacity, but not as part of a regular business; or

5 ‘‘(B) any financial institution.

6 ‘‘(55) The term ‘material associated person’

7 means any associated person of a broker, dealer,

8 government securities broker, government securities

9 dealer, municipal securities dealer, or derivatives

10 dealer (other than a natural person) whose business

11 activities are reasonably likely to have a material im12 pact on the financial or operational condition of any

13 such broker, dealer, government securities broker,

14 government securities dealer, municipal securities

15 dealer, or derivatives dealer, including on its net

16 capital, its liquidity, or its ability to conduct or fi17 nance its operations.

18 ‘‘(56) The term ‘person associated with a de19 rivatives dealer’ or ‘associated person of a deriva20 tives dealer’ means any partner, officer, director, or

21 branch manager of such derivatives dealer (or any

22 person occupying a similar status or performing

23 similar functions), and any other employee of such

24 derivatives dealer who is engaged in the manage25 ment, direction, supervision, or performance of any
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1 activities relating to derivatives, and any person di2 rectly or indirectly controlling, controlled by, or

3 under common control with such derivatives dealer.

4 ‘‘(57) The term ‘designated examining author5 ity’ means the national securities exchange or reg6 istered securities association of which a registered

7 broker or dealer is a member, and if such broker or

8 dealer is a member of more than 1 such self-regu9 latory organization, the organization designated by

10 the Commission as the principal examining authority

11 for such broker or dealer.’’.

12 TITLE I—DERIVATIVES DEALERS

13 SEC. 101. DERIVATIVES DEALER REGISTRATION.

14 The Securities Exchange Act of 1934 is hereby

15 amended by inserting after section 15C (15 U.S.C. 78o–

16 5) the following new section:

17 ‘‘SEC. 15D. DERIVATIVES DEALERS.

18 ‘‘(a) REGISTRATION REQUIRED.—

19 ‘‘(1) REGISTRATION OF DERIVATIVES DEAL20 ERS.—

21 ‘‘(A) REGISTRATION REQUIREMENT.—It

22 shall be unlawful for any derivatives dealer

23 (other than a registered broker or dealer, or a

24 material associated person of a registered

25 broker or dealer that has filed notice in accord-
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1 ance with subparagraph (B) of this paragraph)

2 to make use of the mails or any means or in3 strumentality of interstate commerce to effect

4 any transaction in, or to induce or attempt to

5 induce the purchase or sale of, any derivative

6 unless such derivatives dealer is registered in

7 accordance with paragraph (2) of this sub8 section.

9 ‘‘(B) MATERIAL ASSOCIATED PERSONS OF

10 BROKERS AND DEALERS.—

11 ‘‘(i) NOTICE REQUIREMENT.—It shall

12 be unlawful for any derivatives dealer that

13 is a material associated person of a reg14 istered broker or dealer (other than a ma15 terial associated person of a registered

16 broker or dealer that is itself a registered

17 broker or dealer, or a derivatives dealer

18 that is registered in accordance with para19 graph (2) of this subsection) to make use

20 of the mails or any means or instrumental21 ity of interstate commerce to effect any

22 transaction in, or to induce or attempt to

23 induce the purchase or sale of, any deriva24 tive unless such derivatives dealer has filed

25 with the Commission written notice that it
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1 is a derivatives dealer. When such a de2 rivatives dealer ceases to act as such it

3 shall file with the Commission a written

4 notice that it is no longer acting as a de5 rivatives dealer.

6 ‘‘(ii) FORM OF NOTICE.—Such notices

7 shall be in such form and contain such in8 formation concerning a derivatives dealer

9 and any persons associated with such de10 rivatives dealer as the Commission shall,

11 by rule, prescribe as necessary or appro12 priate in the public interest or for the pro13 tection of investors.

14 ‘‘(2) REGISTRATION PROCEDURE.—A deriva15 tives dealer subject to the registration requirement

16 of paragraph (1)(A) of this subsection may be reg17 istered by filing with the Commission an application

18 for registration in such form and containing such in19 formation and documents concerning such deriva20 tives dealer and any of its associated persons as the

21 Commission, by rule, may prescribe as necessary or

22 appropriate in the public interest or for the protec23 tion of investors. Within 45 days of the date of filing

24 of such application (or within such longer period as
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1 to which the applicant consents), the Commission

2 shall—

3 ‘‘(A) by order grant registration, or

4 ‘‘(B) institute proceedings to determine

5 whether registration should be denied. Such

6 proceedings shall include notice of the grounds

7 for denial under consideration and opportunity

8 for hearing and shall be concluded within 120

9 days of the date of the filing of the application

10 for registration. At the conclusion of such pro11 ceedings, the Commission, by order, shall grant

12 or deny such registration. The order granting

13 registration shall not be effective until such de14 rivatives dealer has become a member of a secu15 rities association registered under section 15A

16 of this title, unless the Commission has exempt17 ed such derivatives dealer, by rule or order,

18 from such membership. The Commission may

19 extend the time for the conclusion of such pro20 ceedings for up to 90 days if it finds good cause

21 for such extension and publishes its reasons for

22 so finding or for such longer period as to which

23 the applicant consents.

24 The Commission shall grant the registration of a de25 rivatives dealer if the Commission finds that the re-
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1 quirements of this section are satisfied. The Com2 mission shall deny such registration if it does not

3 make such a finding or if it finds that if the appli4 cant were so registered, its registration would be

5 subject to suspension or revocation under subsection

6 (c) of this section.

7 ‘‘(3) PROHIBITED CONDUCT.—Any provision of

8 this title (other than section 5 or paragraph (1) of

9 this subsection) which prohibits any act, practice, or

10 course of business if the mails or any means or in11 strumentality of interstate commerce is used in con12 nection therewith shall also prohibit any such act,

13 practice, or course of business by any derivatives

14 dealer registered or having filed notice under para15 graph (1) of this subsection or any person acting on

16 behalf of such derivatives dealer, irrespective of any

17 use of the mails or any means or instrumentality of

18 interstate commerce in connection therewith.

19 ‘‘(4) EXEMPTIONS.—The Commission, by rule

20 or order, upon the Commission’s own motion or

21 upon application, may conditionally or uncondition22 ally exempt any derivatives dealer, or class of deriva23 tives dealers, from any provision of this section, or

24 the rules thereunder, if the Commission finds that

25 such exemption is consistent with the public interest,
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1 the protection of investors, and the purposes of this

2 title.

3 ‘‘(b) RULES.—

4 ‘‘(1) AUTHORITY.—The Commission shall pro5 pose and adopt rules to effect the purposes of this

6 title with respect to transactions in derivatives ef7 fected by derivatives dealers registered or required to

8 register under subsection (a)(1)(A) of this section as

9 follows:

10 ‘‘(A) FINANCIAL RESPONSIBILITY.—Such

11 rules shall provide safeguards with respect to

12 the financial responsibility and related practices

13 of such derivatives dealers including, but not

14 limited to, capital adequacy standards and the

15 carrying and use of customers’ deposits or cred16 it balances.

17 ‘‘(B) REPORTS.—Such rules shall require

18 every such derivatives dealer to make reports to

19 and furnish copies of records to the Commis20 sion, and to file with the Commission, annually

21 or more frequently, a balance sheet and income

22 statement certified by an independent public ac23 countant, prepared on a calendar or fiscal year

24 basis, and such other financial statements

25 (which shall, as the Commission specifies, be
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1 certified) and information concerning its finan2 cial condition as required by such rules.

3 ‘‘(C) RECORDKEEPING.—Such rules shall

4 require records to be made and kept by such

5 derivatives dealers and shall specify the periods

6 for which such records shall be preserved.

7 ‘‘(2) AUTHORITY TO LIMIT DISCLOSURE OF IN8 FORMATION.—Notwithstanding any other provision

9 of law, the Commission shall not be compelled to

10 disclose any information required to be kept or re11 ported under rules adopted under paragraph (1) of

12 this subsection. Nothing in this paragraph shall au13 thorize the Commission to withhold information

14 from Congress, or prevent the Commission from

15 complying with a request for information from any

16 other Federal department or agency requesting the

17 information for purposes within the scope of its ju18 risdiction, or complying with an order of a court of

19 the United States in an action brought by the

20 United States or the Commission. For purposes of

21 section 552 of title 5, United States Code, this para22 graph shall be considered a statute described in sub23 section (b)(3)(B) of such section 552.

24 ‘‘(3) FRAUDULENT ACTS AND PRACTICES.—

25 With respect to any derivatives dealer, the Commis-
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1 sion may, by rule or regulation define, and prescribe

2 means reasonably designed to prevent, such acts and

3 practices as are fraudulent, deceptive, or manipula4 tive.

5 ‘‘(4) COMPLIANCE WITH RULES UNDER THIS

6 SECTION.—No derivatives dealer shall make use of

7 the mails or any means or instrumentality of inter8 state commerce to effect any transaction in, or to in9 duce or attempt to induce the purchase or sale of,

10 any derivative in contravention of any rule under

11 this section.

12 ‘‘(c) ENFORCEMENT BY THE COMMISSION.—

13 ‘‘(1) ADMINISTRATIVE POWERS TO IMPOSE

14 SANCTIONS.—With respect to any derivatives dealer

15 registered or required to register under subsection

16 (a)(1)(A) of this section—

17 ‘‘(A) DERIVATIVES DEALERS.—The Com18 mission, by order, shall censure, place limita19 tions on the activities, functions, or operations

20 of, suspend for a period not exceeding 12

21 months, or revoke the registration of such de22 rivatives dealer, if it finds, on the record after

23 notice and opportunity for hearing, that such

24 censure, placing of limitations, suspension, or

25 revocation is in the public interest and that
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1 such derivatives dealer, or any person associ2 ated with such derivatives dealer (whether prior

3 or subsequent to becoming so associated), has

4 committed or omitted any act or omission enu5 merated in subparagraph (A), (D), (E), or (G)

6 of paragraph (4) of section 15(b) of this title,

7 has been convicted of any offense specified in

8 subparagraph (B) of such paragraph (4) within

9 10 years of the commencement of the proceed10 ings under this paragraph, or is enjoined from

11 any action, conduct, or practice specified in

12 subparagraph (C) of such paragraph (4).

13 ‘‘(B) SUSPENSION OR WITHDRAWAL PEND14 ING FINAL DETERMINATION.—Pending final de15 termination whether registration of any deriva16 tives dealer shall be revoked, the Commission,

17 by order, may suspend such registration, if such

18 suspension appears to the Commission, after

19 notice and opportunity for hearing, to be nec20 essary or appropriate in the public interest or

21 for the protection of investors. Any registered

22 derivatives dealer may, upon such terms and

23 conditions as the Commission may deem nec24 essary in the public interest or for the protec25 tion of investors, withdraw from registration by
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1 filing a written notice of withdrawal with the

2 Commission. If the Commission finds that any

3 registered derivatives dealer is no longer in ex4 istence or has ceased to do business as a deriva5 tives dealer, the Commission, by order, shall

6 cancel the registration of such derivatives deal7 er.

8 ‘‘(C) ASSOCIATED PERSONS.—The Com9 mission, by order, shall censure or place limita10 tions on the activities or functions of any per11 son associated, or seeking to become associated,

12 with a derivatives dealer registered or required

13 to register under subsection (a)(1)(A) of this

14 section or suspend for a period not exceeding

15 12 months or bar any such person from being

16 associated with such a derivatives dealer, if the

17 Commission finds, on the record after notice

18 and opportunity for hearing, that such censure,

19 placing of limitations, suspension, or bar is in

20 the public interest and that such person has

21 committed or omitted any act or omission enu22 merated in subparagraph (A), (D), (E), or (G)

23 of paragraph (4) of section 15(b) of this title,

24 has been convicted of any offense specified in

25 subparagraph (B) of such paragraph (4) within
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1 10 years of the commencement of the proceed2 ings under this paragraph, or is enjoined from

3 any action, conduct, or practice specified in

4 subparagraph (C) of such paragraph (4).

5 ‘‘(2) PERSONS SUSPENDED OR BARRED FROM

6 ASSOCIATION.—It shall be unlawful for any person

7 as to whom an order entered pursuant to paragraph

8 (1) of this subsection suspending or barring him

9 from being associated with a derivatives dealer is in

10 effect willfully to become, or to be, associated with

11 a derivatives dealer without the consent of the Com12 mission, and it shall be unlawful for any derivatives

13 dealer to permit such a person to become, or remain,

14 a person associated with it without the consent of

15 the Commission, if such derivatives dealer knew, or,

16 in the exercise of reasonable care should have

17 known, of such order.

18 ‘‘(d) EXAMINATION OF RECORDS.—All records of a

19 derivatives dealer registered or required to register under

20 subsection (a)(1)(A) of this section, or that has filed notice

21 or is required to file notice under subsection (a)(1)(B) of

22 this section, are subject at any time, or from time to time,

23 to such reasonable periodic, special, or other examinations

24 by representatives of the Commission as the Commission

25 deems necessary or appropriate in the public interest, for
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1 the protection of investors, or otherwise in furtherance of

2 the purposes of this title.

3 ‘‘(e) SECURITIES ASSOCIATION MEMBERSHIP.—

4 ‘‘(1) MEMBERSHIP REQUIREMENT.—It shall be

5 unlawful for any derivatives dealer registered or re6 quired to register with the Commission under sub7 section (a)(1)(A) of this section to effect any trans8 action in, or induce or attempt to induce the pur9 chase or sale of, any derivative, unless such deriva10 tives dealer is a member of a securities association

11 registered under section 15A of this title.

12 ‘‘(2) EXEMPTION.—The Commission, by rule or

13 order, as it deems consistent with the public interest

14 and the protection of investors, may conditionally or

15 unconditionally exempt from paragraph (1) of this

16 subsection any derivatives dealer or class of deriva17 tives dealers specified in such rule or order.’’.

18 TITLE II—BROKER-DEALER

19 OVERSIGHT REFORMS

20 SEC. 201. DERIVATIVES ON SECURITIES.

21 Section 3(a)(10) of the Securities Exchange Act of

22 1934 (15 U.S.C. 78c(a)(10)) is amended by inserting ‘‘de23 rivative,’’ after ‘‘any put, call, straddle, option,’’ the first

24 place it appears.
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1 SEC. 202. NATIONAL SECURITIES EXCHANGES.

2 Section 6 of the Securities Exchange Act of 1934 (15

3 U.S.C. 78f) is amended by adding at the end the following

4 new subsection:

5 ‘‘(g) A national securities exchange may adopt and

6 implement rules applicable to members of such exchange,

7 and material associated persons that have filed notice or

8 are required to file notice under section 15D(a)(1)(B) of

9 this title and that are associated with members for which

10 the exchange is the designated examining authority, who

11 engage in transactions in derivatives—

12 ‘‘(1) to enforce compliance with applicable pro13 visions of this title and the rules and regulations

14 thereunder;

15 ‘‘(2) to provide that any such person shall be

16 appropriately disciplined for violations of applicable

17 provisions of this title and the rules and regulations

18 thereunder;

19 ‘‘(3) to provide for reasonable inspection and

20 examination of the books and records of any such

21 person;

22 ‘‘(4) to prevent fraudulent and manipulative

23 acts and practices;

24 ‘‘(5) to promote just and equitable principles of

25 trade; and
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1 ‘‘(6) to require the establishment of, and adher2 ence to, appropriate internal controls structures.’’.

3 SEC. 203. FINANCIAL RESPONSIBILITY.

4 Section 15(c)(3) of the Securities Exchange Act of

5 1934 (15 U.S.C. 78o(c)(3)) is amended—

6 (1) by striking ‘‘and’’ at the end of clause (A);

7 and

8 (2) by inserting after ‘‘requirements for all bro9 kers and dealers’’ the following: ‘‘, and (C) require

10 the maintenance of sufficient capital levels taking

11 into account the financial activities conducted by,

12 the customary sources of capital and funding of, and

13 the credit risk and aggregate leverage of, any deriva14 tives dealer that is a material associated person of

15 the broker or dealer and that has filed notice or is

16 required to file notice under section 15D(a)(1)(B) of

17 this title’’.

18 SEC. 204. REGISTERED SECURITIES ASSOCIATION.

19 Section 15A of the Securities Exchange Act of 1934

20 (15 U.S.C. 78o–3) is hereby amended by adding at the

21 end the following new subsection:

22 ‘‘(j) A registered securities association may adopt and

23 implement rules applicable to members of such associa24 tion, and material associated persons that have filed notice

25 or are required to file notice under section 15D(a)(1)(B)
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1 of this title and that are associated with members for

2 which the association is the designated examining author3 ity, who engage in transactions in derivatives—

4 ‘‘(1) to enforce compliance with applicable pro5 visions of this title and the rules and regulations

6 thereunder;

7 ‘‘(2) to provide that any such person shall be

8 appropriately disciplined, in accordance with sub9 sections (b)(7), (b)(8), and (h) of this section, for

10 violations of applicable provisions of this title and

11 the rules and regulations thereunder;

12 ‘‘(3) to provide for reasonable inspection and

13 examination of the books and records of any such

14 person;

15 ‘‘(4) to prevent fraudulent and manipulative

16 acts and practices;

17 ‘‘(5) to promote just and equitable principles of

18 trade; and

19 ‘‘(6) to require the establishment of, and adher20 ence to, appropriate internal controls structures.’’.

21 SEC. 205. RISK ASSESSMENT FOR GOVERNMENT SECURI22 TIES BROKERS AND DEALERS.

23 Section 15C(b)(2) of the Securities Exchange Act of

24 1934 (15 U.S.C. 78o–5(b)(2)) is amended by striking sub25 paragraphs (A) and (B) and inserting the following:
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1 ‘‘(A) OBLIGATIONS TO OBTAIN, MAINTAIN, AND

2 REPORT INFORMATION.—Every person who is reg3 istered as a government securities broker or govern4 ment securities dealer under this section shall obtain

5 such information and make and keep such records

6 as the Secretary by rule prescribes concerning (i) the

7 registered person’s policies, procedures, or systems

8 for monitoring and controlling financial and oper9 ational risks to it resulting from the activities of any

10 of its associated persons, other than a natural per11 son, and (ii) with respect to any of its material asso12 ciated persons, such material associated person’s fi13 nancial activities, including trading activity in any

14 financial, securities, or derivatives market. Such

15 records shall be in such form as the Secretary shall

16 prescribe and shall include such information as may

17 be necessary to evaluate any effect that such mate18 rial associated person’s activities may have on any

19 financial, securities, or derivatives market, or any

20 participant in such market. The Secretary, by rule

21 or order, may require reports of such information to

22 be filed with the registered person’s appropriate reg23 ulatory agency at such intervals as the Secretary

24 prescribes as necessary or appropriate in the public
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1 interest, for the protection of investors, or otherwise

2 in furtherance of the purposes of this title.

3 ‘‘(B) AUTHORITY TO REQUIRE ADDITIONAL IN4 FORMATION.—If the appropriate regulatory agency

5 concludes that it has concerns regarding the finan6 cial or operational condition of any government secu7 rities broker or government securities dealer reg8 istered under this section or concerns regarding ac9 tivities affecting the stability or integrity of the secu10 rities or derivatives markets, such agency may re11 quire the registered person to make reports concern12 ing the financial, securities, and derivatives activities

13 of any of such person’s material associated persons.

14 The appropriate regulatory agency, in requiring re15 ports pursuant to this subparagraph, shall specify

16 the information required, the period for which it is

17 required, the time and date on which the informa18 tion must be furnished, and whether the information

19 is to be furnished directly to the appropriate regu20 latory agency or to the designated examining author21 ity for such person.’’.

22 SEC. 206. RISK ASSESSMENT FOR BROKERS AND DEALERS.

23 Section 17(h) of the Securities Exchange Act of 1934

24 (15 U.S.C. 78q(h)) is amended by striking paragraphs (1)

25 and (2) and inserting the following:
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1 ‘‘(1) OBLIGATION TO OBTAIN, MAINTAIN, AND

2 REPORT INFORMATION.—Every person who is (A) a

3 registered broker or dealer, or (B) a registered mu4 nicipal securities dealer for which the Commission is

5 the appropriate regulatory agency, shall obtain such

6 information and make and keep such records as the

7 Commission by rule prescribes concerning (i) the

8 registered person’s policies, procedures, or systems

9 for monitoring and controlling financial and oper10 ational risks to it resulting from the activities of any

11 of its associated persons, other than a natural per12 son, and (ii) with respect to any of its material asso13 ciated persons, such material associated person’s fi14 nancial activities, including trading activity in any

15 financial, securities, or derivatives market. Such

16 records shall be in such form as the Commission

17 shall prescribe and shall include such information as

18 may be necessary to evaluate any effect that such

19 material associated person’s activities may have on

20 any financial, securities, or derivatives market, or

21 any participant in such market. The Commission, by

22 rule or order, may require reports of such informa23 tion to be filed with the Commission at such inter24 vals as the Commission prescribes as necessary or

25 appropriate in the public interest, for the protection
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1 of investors, or otherwise in furtherance of the pur2 poses of this title.

3 ‘‘(2) AUTHORITY TO REQUIRE ADDITIONAL IN4 FORMATION.—If the Commission concludes that it

5 has concerns regarding the financial or operational

6 condition of (A) any registered broker or dealer, or

7 (B) any registered municipal securities dealer, gov8 ernment securities broker, or government securities

9 dealer for which the Commission is the appropriate

10 regulatory agency, or concerns regarding activities

11 affecting the stability or integrity of the securities or

12 derivatives markets, the Commission may require

13 the registered person to make reports concerning the

14 financial, securities, and derivatives activities of any

15 of such person’s material associated persons. The

16 Commission, in requiring reports pursuant to this

17 paragraph, shall specify the information required,

18 the period for which it is required, the time and date

19 on which the information must be furnished, and

20 whether the information is to be furnished directly

21 to the Commission or to the designated examining

22 authority for such person.’’.
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1 SEC. 207. RULES, REGULATIONS, AND ORDERS; ANNUAL RE2 PORTS.

3 Section 23(a)(1) of the Securities Exchange Act of

4 1934 (15 U.S.C. 78w(a)(1)) is amended by inserting ‘‘de5 rivatives,’’ after ‘‘and may for such purposes classify per6 sons, securities,’’.

7 SEC. 208. CONFORMING AMENDMENTS.

8 Section 3(a)(48) of the Securities Exchange Act of

9 1934 (15 U.S.C. 78c(a)(48)) is amended to read as fol10 lows:

11 ‘‘(48) The term ‘registered broker or dealer’

12 means a broker or dealer registered or required to

13 register pursuant to section 15 or 15B of this title,

14 except that—

15 ‘‘(A) in paragraph (3)(A) of this sub16 section and in section 6, the term means such

17 a broker or dealer or a government securities

18 broker or government securities dealer reg19 istered or required to register pursuant to sec20 tion 15C(a)(1)(A) of this title; and

21 ‘‘(B) in paragraph (3)(B) of this sub22 section and in section 15A, the term means

23 such a broker or dealer, a government securities

24 broker or government securities dealer reg25 istered or required to register pursuant to sec26 tion 15C(a)(1)(A) of this title, or a derivatives
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1 dealer registered or required to register pursu2 ant to section 15D(a)(1)(A) of this title.’’.

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