§ 78j. — Manipulative and deceptive devices.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78j]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B--SECURITIES EXCHANGES
Sec. 78j. Manipulative and deceptive devices
It shall be unlawful for any person, directly or indirectly, by the
use of any means or instrumentality of interstate commerce or of the
mails, or of any facility of any national securities exchange--
(a)(1) To effect a short sale, or to use or employ any stop-loss
order in connection with the purchase or sale, of any security
registered on a national securities exchange, in contravention of
such rules and regulations as the Commission may prescribe as
necessary or appropriate in the public interest or for the
protection of investors.
(2) Paragraph (1) of this subsection shall not apply to security
futures products.
(b) To use or employ, in connection with the purchase or sale of
any security registered on a national securities exchange or any
security not so registered, or any securities-based swap agreement
(as defined in section 206B of the Gramm-Leach-Bliley Act), any
manipulative or deceptive device or contrivance in contravention of
such rules and regulations as the Commission may prescribe as
necessary or appropriate in the public interest or for the
protection of investors.
Rules promulgated under subsection (b) of this section that prohibit
fraud, manipulation, or insider trading (but not rules imposing or
specifying reporting or recordkeeping requirements, procedures, or
standards as prophylactic measures against fraud, manipulation, or
insider trading), and judicial precedents decided under subsection (b)
of this section and rules promulgated thereunder that prohibit fraud,
manipulation, or insider trading, shall apply to security-based swap
agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to
the same extent as they apply to securities. Judicial precedents decided
under section 77q(a) of this title and sections 78i, 78o, 78p, 78t, and
78u-1 of this title, and judicial precedents decided under applicable
rules promulgated under such sections, shall apply to security-based
swap agreements (as defined in section 206B of the Gramm-Leach-Bliley
Act) to the same extent as they apply to securities.
(June 6, 1934, ch. 404, title I, Sec. 10, 48 Stat. 891; Pub. L. 106-554,
Sec. 1(a)(5) [title II, Sec. 206(g), title III, Sec. 303(d)], Dec. 21,
2000, 114 Stat. 2763, 2763A-432, 2763A-454.)
References in Text
Section 206B of the Gramm-Leach-Bliley Act, referred to in text, is
section 206B of Pub. L. 106-102, which is set out in a note under
section 78c of this title.
Amendments
2000--Pub. L. 106-554, Sec. 1(a)(5) [title III, Sec. 303(d)(2)],
inserted concluding provisions at end.
Subsec. (a). Pub. L. 106-554, Sec. 1(a)(5) [title II, Sec. 206(g)],
designated existing provisions as par. (1) and added par. (2).
Subsec. (b). Pub. L. 106-554, Sec. 1(a)(5) [title III,
Sec. 303(d)(1)], inserted ``or any securities-based swap agreement (as
defined in section 206B of the Gramm-Leach-Bliley Act),'' before ``any
manipulative or deceptive device''.
Transfer of Functions
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg. Plan
No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out under section 78d of this title.
Section Referred to in Other Sections
This section is referred to in sections 78k, 78u, 78u-3, 78aa-1,
78hh, 3904 of this title; title 42 section 9675.
