Page:United States Statutes at Large Volume 89.djvu/201

 PUBLIC LAW 94-29—JUNE 4, 1975

89 STAT. 141

bank operating under the Code of Law for the District of Cokimbia; and "(C) the Federal Deposit Insurance Corporation for any State bank which is insured by the Federal Deposit Insurance Corporation but which is not a member of the Federal Reserve System. "(5) The Commission shall encourage the insurance industry to require their insured to report expeditiously instances of missing, lost, counterfeit, or stolen securities to the Commission or to such other person as the Commission may, by ru^.e, designate to receive such information.". SEC. 15. The Securities Exchange Act of 1934 is amended by inserting after section 17 (15 U.S.C. 78q) the following new section: " N A T I O N A L S Y S T E M FOR C L E A R A N C E A N D SETTLEMENTo r SECURITIES

TRANSACTIONS

"SEC. 17A. (a)(1) The Congress finds that— 15 USC 78q.l. "(A) The prompt and accurate clearance and settlement of securities transactions, including the transfer of record ownership and the safeguarding of securities and funds related thereto, are necessary for the protection of investors and persons facilitating transactions by and acting on behalf of investors. "(B) Inefficient procedures for clearance and settlement impose unnecessary costs on investors and persons facilitating transactions by and acting on behalf of mvesitors. " ( C j New data processing and communications techniques create the opportunity for more efficient, effective, and safe procedures for clearance and settlement. "(D) The linking of all clearance and settlement facilities and the development of uniform standards and procedures for clearance and settlement will reduce unnecessary costs and increase the protection of investors and persons facilitating transactions by and acting on behalf of investors. "(2) The Commission is directed, therefore, having due regard for the public interest, the protection of investors, the safeguarding of securities and funds, and maintenance of fair competition among brokers and dealers, clearing agencies, and transfer agents, to use its authority under this title to facilitate the establishment of a national system for the prompt and accurate clearance and settlement of transactions in securities (other than exempted securities) in accordance with the findings and to carry out the objectives set forth in paragraph (1) of this subsection. The Commission shall use its authority under this title to assure equal regulation under this title of registered clearing agencies and registered transfer agents. "(b)(1) Except as otherwise provided in this section, it shall be Mails or unlawful for any clearing agency, unless registered in accordance instrumentality of with this subsection, directly or indirectly, to make use of the mails interstate or any means or instrumentality of interstate commerce to perform commerce, the functions of a clearing agency with respect to any security (other prohibition, use. than an exempted security). The Commission, by rule or order, upon Exemption its own motion or upon application, may conditionally or unconditionally exempt any clearing agency or security or any class of clearing agencies or securities from any provisions of this section or the rules or regulations thereunder, if the Commission finds that such exemption is consistent with the public interest, the protection of investors, and the purposes of this section, including the prompt and accurate clearance and settlement of securities transactions and the safeguarding of securities and funds. A clearing agency or transfer

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