Page:United States Statutes at Large Volume 48 Part 1.djvu/908

 882 'T3d CONGRESS. SESS. II. CH. 404. JUNE 6, 1934 . the national banking system and Federal Reserve System, and to insure the maintenance of fair and honest markets in such transactions : (1) Such transactions (a) are carried on in large volume by the public generally and in large part originate outside the States in whic h th e ex chan ges and over -the -cou nter mar kets are loc ated and /or are effected by means of the mails and instrumentalities of interstate commerce ; (b) constitute an important part of the current of inter- state commerce ; (c) involve in large part the securities of issuers engaged in interstate commerce ; (d) involve the use of credit, directl y affec t the f inanci ng of t rade, i ndustr y, and transpo rtatio n in interstate commerce, and directly affect and influence the volume of i nter stat e co mmer ce ; and affect the na tional credit. (2) The prices established and offered in such transactions are generally disseminated and quoted throughout the United States and fore ign coun trie s an d co nsti tute a b asis for det ermi ning and est ab- lishing the prices at which securities are bought and sold, the amount of certain taxes owing to the United States and to the several States by owners, buyers, and sellers of securities, and the value of collateral for bank loans. (3) Frequently the prices of securities on such exchanges and marke ts are suscep tible to manip ulation and c ontrol, and t he dis- semination of such prices gives rise to excessive speculation, result- ing in sudden and unreasonable fluctuations in the prices of securities which (a) cause alternately unreasonable expansion and unreason- able contraction of the volume of credit available for trade, trans- portation, and industry in interstate commerce, (b) hinder the proper appraisal of the value of securities and thus prevent a fair calculation of taxes owing to the United States and to the several States by owners, buyers, and sellers of securities, and (c) prevent the fair valuation of collateral for bank loans and/or obstruct the effective operation of the national banking system and Federal Re serve System. (4) National emergencies, which produce widespread unemploy- ment and the dislocation of trade, transportation, and industry, and which burden interstate commerce and adversely affect the general welfare, are precipitated, intensified, and prolonged by manipulation and sudden and unreasonable fluctuations of security prices and by excessive speculation on such exchanges and markets, and to meet such emergencies the Federal Government is put to such great expense as to burden the national credit. Definitions and ap • plication of Act. DEF INI TIO NS AND AP PLI CAT ION OF TITLE . SEC. 3 . (a) When used in this title, unless the context otherwise requ ires- "Exchange". (1) The term "exchange" means any organization, association, or group of persons, whether incorporated or unincorporated, which Market place and [a- constitutes, maintains, or provides a market place or facilities for cilities included. bringing together purchasers and sellers of securities or for other- wise perf orming with re spect to secu rities the fu nctions common ly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange. "Facility." (2) The term " facility " when used with respect to an exchange includes its premises, tangible or intangible property whether on the premises or not, any right to the use of such premises or prop- erty or any service thereof for the purpose of effecting or reporting a transaction on an exchange (including, among other things, any