Source: https://codes.findlaw.com/us/title-15-commerce-and-trade/15-usc-sect-78c.html
Timestamp: 2019-11-14 12:36:34
Document Index: 219318971

Matched Legal Cases: ['§ 78', '§ 78', '§ 78', '§ 78', '§\u200280', '§\u200278', '§\u200278', '§\u200280', '§\u200280', '§\u200280', '§\u20021811', '§\u20021811', '§\u20023101', '§\u2002601', '§\u2002611', '§\u20021811', '§\u20021', '§\u200280', '§\u200280', '§\u200278', '§ 78', '§ 78']

15 U.S.C. § 78c - U.S. Code Title 15. Commerce and Trade § 78c | FindLaw
15 U.S.C. § 78c - U.S. Code - Unannotated Title 15. Commerce and Trade § 78c. Definitions and application
(3)(A) The term “member” when used with respect to a national securities exchange means (i) any natural person permitted to effect transactions on the floor of the exchange without the services of another person acting as broker, (ii) any registered broker or dealer with which such a natural person is associated, (iii) any registered broker or dealer permitted to designate as a representative such a natural person, and (iv) any other registered broker or dealer which agrees to be regulated by such exchange and with respect to which the exchange undertakes to enforce compliance with the provisions of this chapter, the rules and regulations thereunder, and its own rules. For purposes of sections 78f(b)(1) , 78f(b)(4) , 78f(b)(6) , 78f(b)(7) , 78f(d) , 78q(d) , 78s(d) , 78s(e) , 78s(g) , 78s(h) , and 78u of this title, the term “member” when used with respect to a national securities exchange also means, to the extent of the rules of the exchange specified by the Commission, any person required by the Commission to comply with such rules pursuant to section 78f(f) of this title.
(B) Exception for certain bank activities
(i) Third party brokerage arrangements
The bank enters into a contractual or other written arrangement with a broker or dealer registered under this chapter under which the broker or dealer offers brokerage services on or off the premises of the bank if--
(VI) bank employees do not receive incentive compensation for any brokerage transaction unless such employees are associated persons of a broker or dealer and are qualified pursuant to the rules of a self-regulatory organization,except that the bank employees may receive compensation for the referral of any customer if the compensation is a nominal one-time cash fee of a fixed dollar amount and the payment of the fee is not contingent on whether the referral results in a transaction;
(ii) Trust activities
(iii) Permissible securities transactions
(III) qualified Canadian government obligations as defined in section 24 of Title 12 , in conformity with section 78o-5 of this title and the rules and regulations thereunder, or obligations of the North American Development Bank; or
(iv) Certain stock purchase plans
The bank effects transactions, as part of its transfer agency activities, in the securities of an issuer as part of any pension, retirement, profit-sharing, bonus, thrift, savings, incentive, or other similar benefit plan for the employees of that issuer or its affiliates (as defined in section 1841 of Title 12 ), if the bank does not solicit transactions or provide investment advice with respect to the purchase or sale of securities in connection with the plan.
(II) Dividend reinvestment plans
(III) Issuer plans
(IV) Permissible delivery of materials
(v) Sweep accounts
The bank effects transactions as part of a program for the investment or reinvestment of deposit funds into any no-load, open-end management investment company registered under the Investment Company Act of 1940 [ 15 U.S.C.A. § 80a-1 et seq. ] that holds itself out as a money market fund.
(vi) Affiliate transactions
The bank effects transactions for the account of any affiliate of the bank (as defined in section 1841 of Title 12 ) other than--
(II) an affiliate that is engaged in merchant banking, as described in section 1843(k)(4)(H) of Title 12 .
(vii) Private securities offerings
(I) effects sales as part of a primary offering of securities not involving a public offering, pursuant to section 3(b), 4(2), or 4(5) of the Securities Act of 1933 or the rules and regulations issued thereunder;
(viii) Safekeeping and custody activities
(II) Exception for carrying broker activities
(ix) Identified banking products
The bank effects transactions in identified banking products as defined in section 206 of the Gramm-Leach-Bliley Act [ 15 U.S.C.A. § 78c note].
(x) Municipal securities
(xi) De minimis exception
(C) Execution by broker or dealer
(ii) the trade is a cross trade or other substantially similar trade of a security that--
(D) Fiduciary capacity
For purposes of subparagraph (B)(ii), the term “fiduciary capacity” means--
(E) Exception for entities subject to section 78o(e) of this title
The term “broker” does not include a bank that--
(i) was, on the day before November 12, 1999, subject to section 78o(e) of this title; and
(F) Joint rulemaking required
The term “dealer” means any person engaged in the business of buying and selling securities (not including security-based swaps, other than security-based swaps with or for persons that are not eligible contract participants) for such person's own account through a broker or otherwise.
(B) Exception for person not engaged in the business of dealing
The term “dealer” does not include a person that buys or sells securities (not including security-based swaps, other than security-based swaps with or for persons that are not eligible contract participants) for such person's own account, either individually or in a fiduciary capacity, but not as a part of a regular business.
(C) Exception for certain bank activities
(i) Permissible securities transactions
(ii) Investment, trustee, and fiduciary transactions
(iii) Asset-backed transactions
(iv) Identified banking products
The bank buys or sells identified banking products, as defined in section 206 of the Gramm-Leach-Bliley Act [ 15 U.S.C.A. § 78c note].
(6) The term “bank” means (A) a banking institution organized under the laws of the United States or a Federal savings association, as defined in section 1462(5) of Title 12 , (B) a member bank of the Federal Reserve System, (C) any other banking institution or savings association, as defined in section 1462(4) of Title 12 , whether incorporated or not, doing business under the laws of any State or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the currency pursuant to section 92a of Title 12 , and which is supervised and examined by State or Federal authority having supervision over banks or savings associations, and which is not operated for the purpose of evading the provisions of this chapter, and (D) a receiver, conservator, or other liquidating agent of any institution or firm included in clauses (A), (B), or (C) of this paragraph.
(12)(A) The term “exempted security” or “exempted securities” includes--
(iii) any interest or participation in any common trust fund or similar fund that is excluded from the definition of the term “investment company” under section 3(c)(3) of the Investment Company Act of 1940;
(v) any security issued by or any interest or participation in any pooled income fund, collective trust fund, collective investment fund, or similar fund that is excluded from the definition of an investment company under section 3(c)(3) of the Investment Company Act of 1940;
(vi) solely for purposes of sections 78l , 78m , 78n , and, 78p of this title, any security issued by or any interest or participation in any church plan, company, or account that is excluded from the definition of an investment company under section 3(c)(3) of the Investment Company Act of 1940; and
(B)(i) Notwithstanding subparagraph (A)(i) of this paragraph, government securities shall not be deemed to be “exempted securities” for the purposes of section 78q-1 of this title.
(ii) Notwithstanding subparagraph (A)(ii) of this paragraph, municipal securities shall not be deemed to be “exempted securities” for the purposes of sections 78o and 78q-1 of this title.
(C) For purposes of subparagraph (A)(iv) of this paragraph, the term “qualified plan” means (i) a stock bonus, pension, or profit-sharing plan which meets the requirements for qualification under section 401 of Title 26 , (ii) an annuity plan which meets the requirements for the deduction of the employer's contribution under section 404(a)(2) of Title 26 , (iii) a governmental plan as defined in section 414(d) of Title 26 which has been established by an employer for the exclusive benefit of its employees or their beneficiaries for the purpose of distributing to such employees or their beneficiaries the corpus and income of the funds accumulated under such plan, if under such plan it is impossible, prior to the satisfaction of all liabilities with respect to such employees and their beneficiaries, for any part of the corpus or income to be used for, or diverted to, purposes other than the exclusive benefit of such employees or their beneficiaries, or (iv) a church plan, company, or account that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 [ 15 U.S.C.A. § 80a-3(c)(14) ], other than any plan described in clause (i), (ii), or (iii) of this subparagraph which (I) covers employees some or all of whom are employees within the meaning of section 401(c) of Title 26 , or (II) is a plan funded by an annuity contract described in section 403(b) of Title 26 .
(19) The terms “investment company”, “affiliated person”, “insurance company”, “separate account”, and “company” have the same meanings as in the Investment Company Act of 1940 [ 15 U.S.C.A. § 80a-1 et seq. ].
(20) The terms “investment adviser” and “underwriter” have the same meanings as in the Investment Advisers Act of 1940 [ 15 U.S.C.A. § 80b-1 et. seq. ].
(22)(A) The term “securities information processor” means any person engaged in the business of (i) collecting, processing, or preparing for distribution or publication, or assisting, participating in, or coordinating the distribution or publication of, information with respect to transactions in or quotations for any security (other than an exempted security) or (ii) distributing or publishing (whether by means of a ticker tape, a communications network, a terminal display device, or otherwise) on a current and continuing basis, information with respect to such transactions or quotations. The term “securities information processor” does not include any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, any self-regulatory organizations, any bank, broker, dealer, building and loan, savings and loan, or homestead association, or cooperative bank, if such bank, broker, dealer, association, or cooperative bank would be deemed to be a securities information processor solely by reason of functions performed by such institutions as part of customary banking, brokerage, dealing, association, or cooperative bank activities, or any common carrier, as defined in section 153 of Title 47 , subject to the jurisdiction of the Federal Communications Commission or a State commission, as defined in section 153 of Title 47 , unless the Commission determines that such carrier is engaged in the business of collecting, processing, or preparing for distribution or publication, information with respect to transactions in or quotations for any security.
(26) The term “self-regulatory organization” means any national securities exchange, registered securities association, or registered clearing agency, or (solely for purposes of sections 78s(b) , 78s(c) , and 78w(b) of this title) the Municipal Securities Rulemaking Board established by section 78o-4 of this title.
(29) The term “municipal securities” means securities which are direct obligations of, or obligations guaranteed as to principal or interest by, a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof, or any municipal corporate instrumentality of one or more States, or any security which is an industrial development bond (as defined in section 103(c)(2) of Title 26 ) the interest on which is excludable from gross income under section 103(a)(1) of Title 26 if, by reason of the application of paragraph (4) or (6) of section 103(c) of Title 26 (determined as if paragraphs (4)(A), (5), and (7) were not included in such section 103(c)), paragraph (1) of such section 103(c) does not apply to such security.
(30) The term “municipal securities dealer” means any person (including a separately identifiable department or division of a bank) engaged in the business of buying and selling municipal securities for his own account, through a broker or otherwise, but does not include--
(34) The term “appropriate regulatory agency” means--
(v) Redesignated (iv)
(i) the Comptroller of the Currency, in the case of a national bank or a Federal savings association (as defined in section 3(b)(2) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(b)(2) )), the deposits of which are insured by the Federal Deposit Insurance Corporation 1 when the appropriate regulatory agency for such clearing agency is not the Commission;
(ii) the Board of Governors of the Federal Reserve System in the case of a State member bank of the Federal Reserve System, a bank holding company, a subsidiary of a bank holding company that is a bank other than a bank specified in clause (i) or (iii) of this subparagraph, or a savings and loan holding company when the appropriate regulatory agency for such clearing agency is not the Commission;
(iii) the Federal Deposit Insurance Corporation, in the case of a bank insured by the Federal Deposit Insurance Corporation (other than a member of the Federal Reserve System) or a State savings association (as defined in section 3(b)(3) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(b)(3) )), the deposits of which are insured by the Federal Deposit Insurance Corporation; and 2 when the appropriate regulatory agency for such clearing agency is not the Commission; 3
(D) When used with respect to an institutional investment manager which is a bank the deposits of which are insured in accordance with the Federal Deposit Insurance Act [ 12 U.S.C.A. § 1811 et seq. ]:
(iv) Redesignated (iii)
(F) When used with respect to a person exercising investment discretion with respect to an account; 4
(ii) the Board of Governors of the Federal Reserve System, in the case of any other member bank of the Federal Reserve System;
(iii) the Federal Deposit Insurance Corporation, in the case of any other bank the deposits of which are insured in accordance with the Federal Deposit Insurance Act [ 12 U.S.C.A. § 1811 et seq. ] or a State savings association (as defined in section 3(b)(3) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(b)(3) )), the deposits of which are insured by the Federal Deposit Insurance Corporation; and
(iv) the Commission, in the case of all other such persons.
(i) the Comptroller of the Currency, in the case of a national bank, a Federal savings association (as defined in section 3(b)(2) of the Federal Deposit Insurance Act), the deposits of which are insured by the Federal Deposit Insurance Corporation, or a Federal branch or Federal agency of a foreign bank (as such terms are used in the International Banking Act of 1978 [ 12 U.S.C.A. § 3101 et seq. ]);
(ii) the Board of Governors of the Federal Reserve System, in the case of a State member bank of the Federal Reserve System, a foreign bank, an uninsured State branch or State agency of a foreign bank, a commercial lending company owned or controlled by a foreign bank (as such terms are used in the International Banking Act of 1978), or a corporation organized or having an agreement with the Board of Governors of the Federal Reserve System pursuant to section 25 or section 25A of the Federal Reserve Act [ 12 U.S.C.A. § 601 et seq. or 611 et seq. ];
(iii) the Federal Deposit Insurance Corporation, in the case of a bank insured by the Federal Deposit Insurance Corporation (other than a member of the Federal Reserve System or a Federal savings bank), a State savings association (as defined in section 3(b)(3) of the Federal Deposit Insurance Act), the deposits of which are insured by the Federal Deposit Insurance Corporation, or an insured State branch of a foreign bank (as such terms are used in the International Banking Act of 1978); and
(H) When used with respect to an institution described in subparagraph (D), (F), or (G) of section 1841(c)(2) , or held under section 1843(f), of Title 12--
(ii) the Board of Governors of the Federal Reserve System, in the case of a State member bank of the Federal Reserve System or any corporation chartered under section 25A of the Federal Reserve Act [ 12 U.S.C.A. § 611 et seq. ];
(iii) the Federal Deposit Insurance Corporation, in the case of any other bank the deposits of which are insured in accordance with the Federal Deposit Insurance Act [ 12 U.S.C.A. § 1811 et seq. ]; or
As used in this paragraph, the terms “bank holding company” and “subsidiary of a bank holding company” have the meanings given them in section 1841 of Title 12 . As used in this paragraph, the term “savings and loan holding company” has the same meaning as in section 1467a(a) of Title 12 .
(39) A person is subject to a “statutory disqualification” with respect to membership or participation in, or association with a member of, a self-regulatory organization, if such person--
(A) has been and is expelled or suspended from membership or participation in, or barred or suspended from being associated with a member of, any self-regulatory organization, foreign equivalent of a self-regulatory organization, foreign or international securities exchange, contract market designated pursuant to section 5 of the Commodity Exchange Act ( 7 U.S.C. 7 ), or any substantially equivalent foreign statute or regulation, or futures association registered under section 17 of such Act ( 7 U.S.C. 21 ), or any substantially equivalent foreign statute or regulation, or has been and is denied trading privileges on any such contract market or foreign equivalent;
(B) is subject to--
(i) an order of the Commission, other appropriate regulatory agency, or foreign financial regulatory authority--
(ii) an order of the Commodity Futures Trading Commission denying, suspending, or revoking his registration under the Commodity Exchange Act ( 7 U.S.C. 1 et seq. ); or
(C) by his conduct while associated with a broker, dealer, municipal securities dealer, government securities broker, government securities dealer, security-based swap dealer, or major security-based swap participant, or while associated with an entity or person required to be registered under the Commodity Exchange Act [ 7 U.S.C.A. § 1 et seq. ], has been found to be a cause of any effective suspension, expulsion, or order of the character described in subparagraph (A) or (B) of this paragraph, and in entering such a suspension, expulsion, or order, the Commission, an appropriate regulatory agency, or any such self-regulatory organization shall have jurisdiction to find whether or not any person was a cause thereof;
(F) has committed or omitted any act, or is subject to an order or finding, enumerated in subparagraph (D), (E), (H), or (G) 5 of paragraph (4) of section 78o(b) of this title, has been convicted of any offense specified in subparagraph (B) of such paragraph (4) or any other felony within ten years of the date of the filing of an application for membership or participation in, or to become associated with a member of, such self-regulatory organization, is enjoined from any action, conduct, or practice specified in subparagraph (C) of such paragraph (4), has willfully made or caused to be made in any application for membership or participation in, or to become associated with a member of, a self-regulatory organization, report required to be filed with a self-regulatory organization, or proceeding before a self-regulatory organization, any statement which was at the time, and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any such application, report, or proceeding any material fact which is required to be stated therein.
(41) The term “mortgage related security” means a security that meets standards of credit-worthiness as established by the Commission, and either:
(i) are directly secured by a first lien on a single parcel of real estate, including stock allocated to a dwelling unit in a residential cooperative housing corporation, upon which is located a dwelling or mixed residential and commercial structure, on a residential manufactured home as defined in section 5402(6) of Title 42 , whether such manufactured home is considered real or personal property under the laws of the State in which it is to be located or on one or more parcels of real estate upon which is located one or more commercial structures; and
(ii) were originated by a savings and loan association, savings bank, commercial bank, credit union, insurance company, or similar institution which is supervised and examined by a Federal or State authority, or by a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 1709 and 1715b of Title 12 , or, where such notes involve a lien on the manufactured home, by any such institution or by any financial institution approved for insurance by the Secretary of Housing and Urban Development pursuant to section 1703 of Title 12 ; or
For the purpose of this paragraph, the term “promissory note”, when used in connection with a manufactured home, shall also include a loan, advance, or credit sale as evidence 6 by a retail installment sales contract or other instrument.
(42) The term “government securities” means--
(D) for purposes of sections 78o-5 and 78q-1 of this title, any put, call, straddle, option, or privilege on a security described in subparagraph (A), (B), or (C) other than a put, call, straddle, option, or privilege--
(E) for purposes of sections 78o , 78o-5 , and 78q-1 of this title as applied to a bank, a qualified Canadian government obligation as defined in section 24 of Title 12 .
(43) The term “government securities broker” means any person regularly engaged in the business of effecting transactions in government securities for the account of others, but does not include--
(44) The term “government securities dealer” means any person engaged in the business of buying and selling government securities for his own account, through a broker or otherwise, but does not include--
(46) The term “financial institution” means--
(C) a savings association (as defined in section 3(b) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(b) )), the deposits of which are insured by the Federal Deposit Insurance Corporation.
(47) The term “securities laws” means the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ), the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ), the Sarbanes-Oxley Act of 2002, the Trust Indenture Act of 1939 ( 15 U.S.C. 77aaa et seq. ), the Investment Company Act of 1940 ( 15 U.S.C. 80a-1 et seq. ), the Investment Advisers Act of 1940 (15 U.S.C. 80b et seq.) [ 15 U.S.C.A. § 80b-1 et seq. ], and the Securities Investor Protection Act of 1970 ( 15 U.S.C. 78aaa et seq. ).
(48) The term “registered broker or dealer” means a broker or dealer registered or required to register pursuant to section 78o or 78o-4 of this title, except that in paragraph (3) of this subsection and sections 78f and 78o-3 of this title the term means such a broker or dealer and a government securities broker or government securities dealer registered or required to register pursuant to section 78o-5(a)(1)(A) of this title.
(51)(A) The term “penny stock” means any equity security other than a security that is--
(iii) issued by an investment company registered under the Investment Company Act of 1940 [ 15 U.S.C.A. § 80a-1 et seq. ];
(v) exempted, in whole or part, conditionally or unconditionally, from the definition of such term by rule, regulation, or order prescribed by the Commission.
(53)(A) The term “small business related security” means a security that meets standards of credit-worthiness as established by the Commission, and either--
(iii) the term “insured depository institution” has the same meaning as in section 3 of the Federal Deposit Insurance Act; and
(iv) the term “insured credit union” has the same meaning as in section 1752 of Title 12 .
(54) Qualified investor
Except as provided in subparagraph (B), for purposes of this chapter, the term ‘qualified investor’ means--
(i) any investment company registered with the Commission under section 8 of the Investment Company Act of 1940;
(ii) any issuer eligible for an exclusion from the definition of investment company pursuant to section 3(c)(7) of the Investment Company Act of 1940;
(iii) any bank (as defined in paragraph (6) of this subsection), savings association (as defined in section 3(b) of the Federal Deposit Insurance Act, broker, dealer, insurance company (as defined in section 2(a)(13) of the Securities Act of 1933), or business development company (as defined in section 2(a)(48) of the Investment Company Act of 1940);
(iv) any small business investment company licensed by the United States Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958;
(v) any State sponsored employee benefit plan, or any other employee benefit plan, within the meaning of the Employee Retirement Income Security Act of 1974, other than an individual retirement account, if the investment decisions are made by a plan fiduciary, as defined in section 3(21) of that Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser;
(vii) any market intermediary exempt under section 3(c)(2) of the Investment Company Act of 1940;
(ix) any foreign bank (as defined in section 1(b)(7) of the International Banking Act of 1978);
(B) Altered thresholds for asset-backed securities and loan participations
For purposes of subsection (a)(5)(C)(iii) of this section and section 206(a)(5) of the Gramm-Leach-Bliley Act [ 15 U.S.C.A. § 78c note], the term ‘qualified investor’ has the meaning given such term by subparagraph (A) of this paragraph except that clauses (xi) and (xii) shall be applied by substituting ‘$10,000,000’ for ‘$25,000,000’.
(55)(A) The term “security future” means a contract of sale for future delivery of a single security or of a narrow-based security index, including any interest therein or based on the value thereof, except an exempted security under paragraph (12) of this subsection as in effect on January 11, 1983 (other than any municipal security as defined in paragraph (29) of this subsection as in effect on January 11, 1983). The term “security future” does not include any agreement, contract, or transaction excluded from the Commodity Exchange Act under section 2(c), 2(d), 2(f), or 2(g) of the Commodity Exchange Act (as in effect on December 21, 2000) or sections 27 to 27f of Title 7 .
(B) The term “narrow-based security index” means an index--
(C) Notwithstanding subparagraph (B), an index is not a narrow-based security index if--
(II) no component security comprises more than 30 percent of the index' s weighting; and
(III) each component security is--
(v) no more than 18 months have passed since December 21, 2000 and--
(F) For purposes of subparagraphs (B) and (C) of this paragraph--
(57)(A) The term “margin', when used with respect to a security futures product, means the amount, type, and form of collateral required to secure any extension or maintenance of credit, or the amount, type, and form of collateral required as a performance bond related to the purchase, sale, or carrying of a security futures product.
(B) The terms “margin level” and “level of margin', when used with respect to a security futures product, mean the amount of margin required to secure any extension or maintenance of credit, or the amount of margin required as a performance bond related to the purchase, sale, or carrying of a security futures product.
(C) The terms “higher margin level” and “ higher level of margin”, when used with respect to a security futures product, mean a margin level established by a national securities exchange registered pursuant to section 78f(g) of this title that is higher than the minimum amount established and in effect pursuant to section 78g(c)(2)(B) of this title.
(58) Audit committee
The term “audit committee” means--
(59) Registered public accounting firm
The term “registered public accounting firm” has the same meaning as in section 2 of the Sarbanes-Oxley Act of 2002.
(60) Credit rating
(61) Credit rating agency
The term “credit rating agency” means any person--
(62) Nationally recognized statistical rating organization
The term “nationally recognized statistical rating organization” means a credit rating agency that--
(C) Redesignated (B)
(63) Person associated with a nationally recognized statistical rating organization
(64) Qualified institutional buyer
The term “qualified institutional buyer” has the meaning given such term in section 230.144A(a) of title 17, Code of Federal Regulations , or any successor thereto.
(65) Eligible contract participant
The term “eligible contract participant” has the same meaning as in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ).
(66) Major swap participant
The term “major swap participant” has the same meaning as in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ).
(67) Major security-based swap participant
The term “major security-based swap participant” means any person--
(ii)(I) who maintains a substantial position in security-based swaps for any of the major security-based swap categories, as such categories are determined by the Commission, excluding both positions held for hedging or mitigating commercial risk and positions maintained by any employee benefit plan (or any contract held by such a plan) as defined in paragraphs (3) and (32) of section 3 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002 ) for the primary purpose of hedging or mitigating any risk directly associated with the operation of the plan;
(III) that is a financial entity that--
For purposes of subparagraph (A), the Commission shall define, by rule or regulation, the term “substantial position” at the threshold that the Commission determines to be prudent for the effective monitoring, management, and oversight of entities that are systemically important or can significantly impact the financial system of the United States. In setting the definition under this subparagraph, the Commission shall consider the person's relative position in uncleared as opposed to cleared security-based swaps and may take into consideration the value and quality of collateral held against counterparty exposures.
(68) Security-based swap
Except as provided in subparagraph (B), the term “security-based swap” means any agreement, contract, or transaction that--
(ii) is based on--
(B) Rule of construction regarding master agreements
The term “security-based swap” does not include any agreement, contract, or transaction that meets the definition of a security-based swap only because such agreement, contract, or transaction references, is based upon, or settles through the transfer, delivery, or receipt of an exempted security under paragraph (12), as in effect on January 11, 1983, (other than any municipal security as defined in paragraph (29) as in effect on January 11, 1983, unless such agreement, contract, or transaction is of the character of, or is commonly known in the trade as, a put, call, or other option.
(E) Rule of construction regarding use of the term index
(69) Swap
The term “swap” has the same meaning as in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ).
(70) Person associated with a security-based swap dealer or major security-based swap participant
The term “person associated with a security-based swap dealer or major security-based swap participant” or “associated person of a security-based swap dealer or major security-based swap participant” means--
Other than for purposes of section 78o-10(l)(2) of this title, the term “person associated with a security-based swap dealer or major security-based swap participant” or “associated person of a security-based swap dealer or major security-based swap participant” does not include any person associated with a security-based swap dealer or major security-based swap participant whose functions are solely clerical or ministerial.
(71) Security-based swap dealer
The term “security-based swap dealer” means any person who--
(B) Designation by type or class
The term “security-based swap dealer” does not include a person that enters into security-based swaps for such person's own account, either individually or in a fiduciary capacity, but not as a part of regular business.
(72) Appropriate Federal banking agency
The term “appropriate Federal banking agency” has the same meaning as in section 3(q) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(q) ).
(73) Board
(74) Prudential regulator
The term “prudential regulator” has the same meaning as in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ).
(75) Security-based swap data repository
(76) Swap dealer
The term “swap dealer” has the same meaning as in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ).
(77) Security-based swap execution facility
The term “security-based swap execution facility” means a trading system or platform in which multiple participants have the ability to execute or trade security-based swaps by accepting bids and offers made by multiple participants in the facility or system, through any means of interstate commerce, including any trading facility, that--
(78) Security-based swap agreement
For purposes of sections 78i , 78j , 78p , 78t , and 78u-1 of this title, and section 17 of the Securities Act of 1933 ( 15 U.S.C. 77q ), the term “security-based swap agreement” means a swap agreement as defined in section 206A of the Gramm-Leach-Bliley Act ( 15 U.S.C. 78c note) of which a material term is based on the price, yield, value, or volatility of any security or any group or index of securities, or any interest therein.
(79) Asset-backed security
The term “asset-backed security”--
(A) means a fixed-income or other security collateralized by any type of self-liquidating financial asset (including a loan, a lease, a mortgage, or a secured or unsecured receivable) that allows the holder of the security to receive payments that depend primarily on cash flow from the asset, including--
(80) 7 Emerging growth company
The term “emerging growth company” means an issuer that had total annual gross revenues of less than $1,000,000,000 (as such amount is indexed for inflation every 5 years by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) during its most recently completed fiscal year. An issuer that is an emerging growth company as of the first day of that fiscal year shall continue to be deemed an emerging growth company until the earliest of--
(D) the date on which such issuer is deemed to be a “large accelerated filer”, as defined in section 240.12b-2 of title 17, Code of Federal Regulations , or any successor thereto.
(80) 7 Funding portal
The term “funding portal” means any person acting as an intermediary in a transaction involving the offer or sale of securities for the account of others, solely pursuant to section 4(6) of the Securities Act of 1933 ( 15 U.S.C. 77d(6) )), that does not--
Notwithstanding any other provision of this chapter, but subject to paragraph (2) of this subsection, a charitable organization, as defined in section 3(c)(10)(D) of the Investment Company Act of 1940, or any trustee, director, officer, employee, or volunteer of such a charitable organization acting within the scope of such person's employment or duties with such organization, shall not be deemed to be a “broker”, “dealer”, “municipal securities broker”, “municipal securities dealer”, “government securities broker”, or “government securities dealer” for purposes of this chapter solely because such organization or person buys, holds, sells, or trades in securities for its own account in its capacity as trustee or administrator of, or otherwise on behalf of or for the account of--
(C) a trust or other donative instrument described in section 3(c)(10)(B) of the Investment Company Act of 1940, or the settlors (or potential settlors) or beneficiaries of any such trust or other instrument.
No church plan described in section 414(e) of Title 26 , no person or entity eligible to establish and maintain such a plan under Title 26, no company or account that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940, and no trustee, director, officer or employee of or volunteer for such plan, company, account, person, or entity, acting within the scope of that person's employment or activities with respect to such plan, shall be deemed to be a “broker”, “dealer”, “municipal securities broker”, “municipal securities dealer”, “government securities broker”, “government securities dealer”, “clearing agency”, or “transfer agent” for purposes of this chapter--
(1) solely because such plan, company, person, or entity buys, holds, sells, trades in, or transfers securities or acts as an intermediary in making payments in connection with transactions in securities for its own account in its capacity as trustee or administrator of, or otherwise on behalf of, or for the account of, any church plan, company, or account that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940; and
The Commission shall, by rule, exempt, conditionally or unconditionally, a registered funding portal from the requirement to register as a broker or dealer under section 78o(a)(1) of this title, provided that such funding portal--
For purposes of sections 78o(b)(8) of this title and 78o-3 of this title, the term “broker or dealer” includes a funding portal and the term “registered broker or dealer” includes a registered funding portal, except to the extent that the Commission, by rule, determines otherwise, provided that a national securities association shall only examine for and enforce against a registered funding portal rules of such national securities association written specifically for registered funding portals.
2 So in original. The “; and” probably should be a comma.
3 So in original. Probably should be followed by “and”.
4 So in original. The semicolon probably should be a colon.
5 So in original. Probably should be “(G) or (H)”.
6 So in original. Probably should be “evidenced”.
7 So in original. Two pars. (80) have been enacted.
Read this complete 15 U.S.C. § 78c - U.S. Code - Unannotated Title 15. Commerce and Trade § 78c. Definitions and application on Westlaw