Page:United States Statutes at Large Volume 48 Part 1.djvu/918

 892 73d C ONGRESS. SESS. II. CH. 404. JUNE 6, 1934. disclosure to all members of the exchange of all orders placed with specialists, under such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for limited. as a broker the p rotecti on of investo rs. It shall a lso be unlawf ul for a spec ialist acting as a broker to effect on the exchange any transaction except upon a market or limited price order. Commission may ex- (c) If because of the limited volume of transactions effected on an empt smal l exchange from prescribed provi- exchange, it is in the opinion of the Commission impracticable and sions. not necessary or appropriate in the public interest or for the protec- tion of investors to apply any of the foregoing provisions of this section or the rules and regulations thereunder, the Commission shall have power, upon application of the exchange and on a showing that the rules of such exchange are otherwise adequate for the protection of investors, to exempt such exchange and its members from any such provision or rules and regulations. Dealer -broker. Limitation on funs- (d) It shall be unlawful for a member of a national securities tions of. exchange who is both a dealer and a broker, or for any person who both as a broker and a dealer transacts a business in securities through the medium of a member or otherwise, to effect through the use of any facility of a national securities exchange or of the mails or of any means or instrumentalit of interstate commerce, or other- wise in the case of a member, (1) any transaction in connection with which, directly or indirectly, he extends or maintains or arranges for the extension or maintenance of credit to or for a customer on any security (other than an exempted security) which was a part of a new issue in the distribution of which he participated as a member of a selling syndicate or group within six months prior Proviso. to such tran saction : Provi ded That credit shall not be deemed Credit not deemed extended by reason of extended by reason of a bona fide delayed delivery of any such delayed delivery. security against full payment of the entire purchase price thereof upon such delivery within thirty-five days after such purchase, or Disclosure of broker's (2) any transaction with respect to any security (other than an interest . exempted security) unless, if the transaction is with a customer, he discloses to such customer in writing at or before the completion of the transaction whether he is acting as a dealer for his own account, as a broker for such customer, or as a broker for some other person. Study of co mplete (e) The Commission is directed to make a study of the feasibility segregation of dealer- broker functions to be and advisability of the complete segregation of the functions of made' dealer and broker, and to report the results of its study and its recommendations to the Congress on or before January 3, 1936. R egist rati on re quire - REGISTRATION REQUIREMENTS FOR SECURITIES ments for securities . Transactions in un- SEC. 12 . (a) It shall be unlawful for any member, broker, or dealer r egist ered secu ritie s un- lawful ; exempted secu- to effect any transaction in any security (other than an exempted security) on a. national securities exchange unless a registration is effective as to such security for such exchange in accordance with R egist rati on ap plica - th( b)) provisions A security may be registered title on a national securities thereunder . tion . exch ange by the issuer filing an application with the exchange (and filing with the Commission such duplicate originals thereof as the Com- mission may require), which application shall contain- requir d ied information (1) Such informa tion, in such detail, as to the issuer a nd any person directly or indirectly controlling or controlled by, or under direct or indirect common control with, the issuer, and any guarantor of the security as to principal or interest or both, as the Commission may by rules and regulations require, as necessary or appropriate in