Page:United States Statutes at Large Volume 89.djvu/165

 PUBLIC LAW 94-29—JUNE 4, 1975

89 STAT. 105

" (3) The rules of the exchange assure a fair representation of its members in the selection of its directors and administration of its affairs and provide that one or more directors shall be representative of issuers and investors and not be associated with a member of the exchange, broker, or dealer. " (4) The rules of the exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. " (5) The rules of the exchange are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers, or to regulate by virtue of any authority conferred by this title matters not related to the purposes of this title or the administration of the exchange. " (6) The rules of the exchange provide that (subject to any rule or order of the Commission pursuant to section 17(d) or 19 (g)(2) of this title) its members and persons associated with its Post, pp. 137, members shall be appropriately disciplined for violation of the 146. provisions of this title, the rules or regulations thereunder, or the rules of the exchange, by expulsion, suspension, limitation of activities, functions, and operations, fine, censure, being suspended or barred from being associated with a member-, or any other fitting sanction. " (7) The rules of the exchange are in accordance with the provisions of subsection (d) of this section, and in general, provide a fair procedure for the disciplining of members and persons associated with members, the denial of membership to any person seeking membership therein, the b a r r i n g of any person from becoming associated w4th a member thereof, and the prohibition or limitation by the exchange of any person with respect to access to services offered by the exchange or a member thereof. " (8) The rules of the exchange do not impose any burden on competition not necessary or appropriate in furtherance of the purposes of this title. " (c)(1) A national securities exchange shall deny membership to Membership, (A) any person, other than a n a t u r a l person, which is not a registered denial. broker or dealer or (B) any natural person who is not, or is not associated with, a registered broker or dealer. " (2) A national securities exchange may, and in cases in which the Commission, by order, directs as necessary or appropriate in the public interest or for the protection shall, deny membership to any registered broker or dealer or natural person associated with a registered broker or dealer, and bar from becoming associated with a member any person, who is subject to a statutory disqualification. A national Notice. securities exchange shall file notice with the Commission not less than t h i r t y days prior to admitting any person to membership or permitting any person to become associated with a member, if the exchange knew, or in the exercise of reasonable care should have known, that such person was subject to a statutory disqualification. The notice shall be in such form and contain such information as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors.

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