Page:United States Statutes at Large Volume 48 Part 1.djvu/915

 73d CONGRESS. SESS. II. CH. 404. JUNE 6, 1934. 889 credit balances (but excluding indebtedness secured by exempted securit ies), to exc eed su ch per centag e of th e net capita l (exc lusive of fixed assets and value of exchange membership) employed in the business, but not exceeding in any case 2 .000 per centum, as the Commission may by rules and regulations prescribe as necessary or appropriate in the public interest or for the protection of investors. (c) In contra ventio n of s uch ru les an d regul ations as th e Comm is- Commingling of on .. sion shall prescribe for the protection of investors to hypothecate ties, without written or arrange for the hypothecation of any securities carried for the consent, unlawful. accou nt of any cust omer under cir cumst ances (1) that will perm it the commingling of his securities without his written consent with the securities of any other customer, (2) that will permit such securities to be commingled with the securities of any person other than a bona fide customer, or (3) that will permit such securities to Pledging securities for amount greater be hypothecated, or subjected to any lien or claim of the pledgee, than customer's iii . for a s um in excess of th e aggr egate indebte dness of suc h cust omers rleh ted nes a, in respec t of such securiti es. (d) To lend or arrange for the lending of any securities carried securities. g cust ome r's for the accou nt of any cu stomer witho ut the writte n cons ent of such customer. PRO HIBI TION AG AINS T MA NIPU LATI ON OF S ECUR ITY PRIC ES Prohibition against manipulation of secu- rity prices. SE C. 9. (a) It shall be unlawful for any person, directly or indi- Unlawful acts. rectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange- (1) For the purpose of creating a false or misleading appearance Effect trans actions of active trading in any security registered on a national securities mvo benefici al lvf ng ow no cnershihangep in o1 exchange, or a false or misleading appearance with respect to the security. market for an y such secur ity, ( A) to effect any tr ansact ion in such securit which involves no change in the beneficial ownership thereof, or (B) to enter an order or orders for the purchase of such chaa set eer dma tch ed pur - security with the knowledge that an order or orders of substantially the same size, at substantially the same time, and at substantially the same price, for the sale of any such security, has been or will be entered by or for the same or different parties, or (C) to enter Sale order. any order or orders for the sale of any such security with the knowl- edge that an order or orders of substantially the same size, at sub- stantially the same time, and at substantially the same price, for the purchase of such security, has been or will be entered by or for the same or different parties. (2) To effect alone or with one or more other persons a series Effect transactions to f raise or depress seen- of transactions in any security registered on a national securities rity prices. exchang e crea ting a ctual or app arent active tradin g in s uch se curity or rais ing or depre ssing the pr ice of such s ecurit y, for the p urpose of inducing the purchase or sale of such security by others. (3) If a dealer or broker, or other person selling or offering for Circulate false infor- mation concerning mar. sale or purchasing or offering to purchase the security, to induce the ket operations to in. purchase or sale of any security registered on a national securities Iu, sale or purchase. exchange by the circulation or dissemination in the ordinary course of business of information to the effect that the price of any such security will or i s likely to rise o r fall be cause of market op erations of any one or more persons conducted for the purpose of raising or depressing the prices of such security. (4) If a dealer or broker, or other person selling or offering for Make false statement sale or purchasing or offering to purchase the security, to make, re- tobid, purchase, etc. garding any security registered on a national securities exchange, for the purpose of inducing the purchase or sale of such security,