Page:United States Statutes at Large Volume 100 Part 4.djvu/472

 100 STAT. 3208

PUBLIC LAW 99-571—OCT. 28, 1986

Public Law 99-571 99th Congress An Act Oct. 28, 1986 [H.R. 2032] Government Securities Act of 1986. 15 USC 78a note. 15 USC 78o-5 note.



An Act Entitled the Government Securities Act of 1986.

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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE AND FINDINGS. (a) SHORT TITLE.—This Act may be cited as the "Government

Securities Act of 1986". (b) FINDINGS.—The Congress finds that transactions in government securities are affected with a public interest which makes it necessary— (1) to provide for the integrity, stabiHty, and efficiency of such transactions and of matters and practices related thereto; (2) to impose adequate regulation of government securities brokers and government securities dealers generally; and (3) to require appropriate financial responsibility, recordkeeping, reporting, and related regulatory requirements; in order to protect investors and to insure the maintenance of fair, honest, and liquid markets in such securities. TITLE I—GOVERNMENT SECURITIES BROKERS AND DEALERS .1

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SEC. 101. ESTABLISHMENT OF GOVERNMENT SECURITIES REGULATORY AUTHORITY. 15 USC 78a.

The Securities Exchange Act of 1934 (hereinafter in this title referred to as "the Act") is amended by inserting after section 15B (15 U.S.C. 78o-4) the following new section: "GOVERNMENT SECURITIES BROKERS AND DEALERS

Mail. eommerce and trade. 15 USC 78o-5.

Banks and banking.

"SEC. 15C. (a)(1)(A) It shall be unlawful for any government securities broker or government securities dealer (other than a registered broker or dealer or a financial institution) to make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any government security unless such government securities broker or government securities dealer is registered in accordance with paragraph (2) of this subsection. "(B)(i) It shall be unlawful for any government securities broker or government securities dealer that is a registered broker or dealer or a financial institution to make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any government security unless such government securities broker or government securities dealer has filed with the appropriate regulatory agency written notice that it is a government securities broker or government securities dealer. When a government securities broker or government securities dealer ceases to act as such it

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