Page:United States Statutes at Large Volume 114 Part 5.djvu/494

 114 STAT. 2763A-454 PUBLIC LAW 106-554—APPENDIX E such security-based swap agreement, any statement which was at the time and in the Ught of the circumstances under which it was made, false or misleading with respect to any material fact, and which he knew or had reasonable ground to believe was so false or misleading. "(5) For a consideration, received directly or indirectly from a dealer or broker, or other person selling or offering for sale or purchasing or offering to purchase the security or a security- based swap agreement (as defined in section 206B of the Gramm- Leach-Bliley Act) with respect to such security, to induce the purchase of any security registered on a national securities exchange or any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) with respect to such security by the circulation or dissemination of information to the effect that the price of any such security will or is likely to rise or fall because of the market operations of any one or more persons conducted for the purpose of raising or depressing the price of such security.". (c) LIMITATION.— Section 9 of the Securities Exchange Act of 1934 is amended by adding at the end the following new subsection: "(i) The authority of the Commission under this section with respect to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) shall be subject to the restrictions and limitations of section 3A(b) of this title.". (d) REGULATIONS ON THE USE OF MANIPULATIVE AND DECEPTIVE DEVICES.— Section 10 of the Securities Exchange Act of 1934 (15 U.S.C. 78j) is amended— (1) in subsection (b), by inserting "or any securities-based swap agreement (as defined in section 206B of the Gramm- Leach-Bliley Act)," before "any manipulative or deceptive device"; and (2) by adding at the end the following: "Rules promulgated under subsection (b) that prohibit fraud, manipulation, or insider trading (but not rules imposing or specify- ing reporting or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider trading), and judicial precedents decided under subsection (b) and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to the same extent as they apply to securities. Judicial precedents decided under section 17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this title, and judicial precedents decided under applicable rules promulgated under such sections, shall apply to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to the same extent as they apply to securities.". (e) BROKER, DEALER ANTI-FRAUD, ANTI-MANIPULATION ENFORCEMENT AUTHORITY.— Section 15(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)(l)) is amended to read as follows: "(c)(1)(A) No broker or dealer shall 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 security (other than commercial paper, bankers' acceptances, or commercial bills) otherwise than on a national securities exchange of which it is a member, or any security-based

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