Page:United States Statutes at Large Volume 48 Part 1.djvu/912

 886 Disciplinary provi- sions in rules of ex- change. Adoption of addi- tio nal ru les by ex- change. Commission author- ity to grant registra- tion. Order to be made within 30 days. Hearing when de- nied. Filing application deemed date of receipt. Amendments p e r - mitted . Withdrawal of regis- tration by exchange. Margin require- ments. Rules governing amoun t of cred it on registered security to be prescribed. Ma rgi nal req uir e- ment standard. 73d C ONGRESS. SESS. II. CH. 404. JU NE 6, 1934 . powers compliance by its members, with the provisions of this title, and any amendment thereto and any rule or regulation made or to be made thereunder ; (2) Such data as to its organization, rules of procedure, and mem- bership, and such other information as the Commission may by rules and regulations require as being necessary or appropriate in the pub lic in terest or for the pr otectio n of in vestor s ; (3) Copies of its constitution, articles of incorporation with all amendments thereto, and of its existing bylaws or rules or instru- ments correspondin g thereto, wha tever the nam e, which are herein- after collectively referred to as the " rules of the exchange " ; and (4) An agreement to furnish to the Commission copies of any amendments to the rules of the exchange forthwith upon their adopt ion. (b) No registration shall be granted or remain in force unless the rules of the exchange include provision for the expulsion, suspension, or disciplining of a member for conduct or proceeding inconsistent with just and equi table principl es of trade, and declare t hat the wil lful v iolatio n of an y prov isions of this title or any rule o r regu la- tion thereunder shall be considered conduct or proceeding incon- sistent with just and equitable principles of trade. (c) Nothing in this title shall be construed to prevent any exchange from adopting and enforcing any rule not inconsistent with this title and the rules and regulations thereunder and the applicable laws of the State in which it is located. (d) If it appears to the Commission that the exchange applying for r egistration i s so organized as to be abl e to comply w ith the provisions of this title and the rules and regulations thereunder and that the rules of the exchange are just and adequate to insure fair deali ng and to pro tect investors, the Commiss ion shall cau se such exchange to be registered as a national securities exchange. (e) Within thirty days after the filing of the application, the Commission shall enter an order either granting or, after appropri- ate n otice and opp ortunity for h earing, denyi ng registrati on as a national securities exchange, unless the exchange applying for regis- tration shall withdraw its application or consent to the Commission's deferring action on its application for a stated longer period after the date of filing. The filing with the Commission of an application for registration by an exchange shall be deemed to have taken place upon the receipt thereof. Amendments to an application may be made upon such terms as the Commission may prescribe. (f) An exchange may, upon appropriate application in accordance with the rules and regulations of the Commission, and upon such terms as the Commission may deem necessary for the protection of investors, withdraw its registration. MARGIN REQUIREMENTS SEC. 7. (a) For the purpose of preventing the excessive use of credit for the purchase or carrying of securities, the Federal Reserve Board shall, prior to the effective date of this section and from time to time thereafter, prescribe rules and regulations with respect to the amount of credit that may be initially extended and subsequently maintained on any security (other than an exempted security) regis- tered on a national securities exchange. For the initial extension of credit, such rules and regulations shall be based upon the following standard : An amount not greater than whichever is the higher of- (1) 55 per centum of the current market price of the security, or