Source: http://www.law.uc.edu/sites/default/files/CCL/34Act/sec11.html
Timestamp: 2014-04-21 14:52:44
Document Index: 43838337

Matched Legal Cases: ['§ 11', '§ 201', '§ 6', '§ 18', '§ 104', '§ 1', '§ 205']

Section 11 -- Trading by Members of Exchanges, Brokers, and Dealers
It shall be unlawful for any member of a national securities exchange to effect any transaction on such exchange for its own account, the account of an associated person, or an account with respect to which it or an associated person thereof exercises investment discretion: Provided, however, That this paragraph shall not make unlawful--
any stabilizing transaction effected in compliance with rules under section 10(b) to facilitate a distribution of a security in which the member effecting such transaction is participating;
any other transaction for a member's own account provided that (i) such member is primarily engaged in the business of underwriting and distributing securities issued by other persons, selling securities to customers, and acting as broker, or any one or more of such activities, and whose gross income normally is derived principally from such business and related activities and (ii) such transaction is effected in compliance with rules of the Commission which, as a minimum, assure that the transaction is not inconsistent with the maintenance of fair and orderly markets and yields priority, parity, and precedence in execution to orders for the account of persons who are not members or associated with members of the exchange;
any transaction for an account with respect to which such member or an associated person thereof exercises investment discretion if such member--
transactions on a national securities exchange not unlawful under paragraph (1) of this subsection effected by any member thereof for its own account (unless such member is acting in the capacity of market maker or odd- lot dealer), the account of an associated person, or an account with respect to which such member or an associated person thereof exercises investment discretion;
transactions otherwise than on a national securities exchange effected by use of the mails or any means or instrumentality of interstate commerce by any member of a national securities exchange, broker, or dealer for the account of such member, broker, or dealer (unless such member, broker, or dealer is acting in the capacity of a market maker), the account of an associated person, or an account with respect to which such member, broker, or dealer or associated person thereof exercises investment discretion; and
Registration of members as odd-lot dealers and specialists When not in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest and for the protection of investors, to maintain fair and orderly markets, or to remove impediments to and perfect the mechanism of a national market system, the rules of a national securities exchange may permit (1) a member to be registered as an odd-lot dealer and as such to buy and sell for his own account so far as may be reasonably necessary to carry on such odd-lot transactions, and (2) a member to be registered as a specialist. Under the rules and regulations of the Commission a specialist may be permitted to act as a broker and dealer or limited to acting as a broker or dealer. It shall be unlawful for a specialist or an official of the exchange to disclose information in regard to orders placed with such specialist which is not available to all members of the exchange, to any person other than an official of the exchange, a representative of the Commission, or a specialist who may be acting for such specialist: Provided, however, That the Commission, by rule, may require disclosure to all members of the exchange of all orders placed with specialists, under such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors. It shall also be unlawful for a specialist permitted to act as a broker and dealer to effect on the exchange as broker any transaction except upon a market or limited price order.
June 6, 1934, c. 404, Title I, § 11, 48 Stat. 891; Aug. 10, 1954, c. 667, Title II, § 201, 68 Stat. 686; June 4, 1975, Pub.L. 94-29, § 6, 89 Stat. 110; May 21, 1978, Pub.L. 95-283, § 18(a), 92 Stat. 275; Oct. 3, 1984, Pub.L. 98-440, Title I, § 104, 98 Stat. 1690; Aug. 11, 1993, Pub.L. 103-68, § 1, 107 Stat. 691; Sept. 23, 1994, Pub.L. 103-325, Title II, § 205, 108 Stat. 2199.