§ 78q-1. — National system for clearance and settlement of securities transactions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78q-1]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B--SECURITIES EXCHANGES
Sec. 78q-1. National system for clearance and settlement of
securities transactions
(a) Congressional findings; facilitating establishment of system
(1) The Congress finds that--
(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 investors.
(C) 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)(A) 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 chapter--
(i) to facilitate the establishment of a national system for the
prompt and accurate clearance and settlement of transactions in
securities (other than exempt securities); and
(ii) to facilitate the establishment of linked or coordinated
facilities for clearance and settlement of transactions in
securities, securities options, contracts of sale for future
delivery and options thereon, and commodity options;
in accordance with the findings and to carry out the objectives set
forth in paragraph (1) of this subsection.
(B) The Commission shall use its authority under this chapter to
assure equal regulation under this chapter of registered clearing
agencies and registered transfer agents. In carrying out its
responsibilities set forth in subparagraph (A)(ii) of this paragraph,
the Commission shall coordinate with the Commodity Futures Trading
Commission and consult with the Board of Governors of the Federal
Reserve System.
(b) Registration of clearing agencies; application; determinations by
Commission requisite to registration of applicant as clearing
agency; denial of participation; discipline; summary
proceedings; exemption; facilities for handling derivatives
(1) Except as otherwise provided in this section, it shall be
unlawful for any clearing agency, unless registered in accordance with
this subsection, directly or indirectly, to make use of the mails or any
means or instrumentality of interstate commerce to perform the functions
of a clearing agency with respect to any security (other than an
exempted security). The Commission, by rule or order, upon 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 agent shall not
perform the functions of both a clearing agency and a transfer agent
unless such clearing agency or transfer agent is registered in
accordance with this subsection and subsection (c) of this section.
(2) A clearing agency may be registered under the terms and
conditions hereinafter provided in this subsection and in accordance
with the provisions of section 78s(a) of this title, by filing with the
Commission an application for registration in such form as the
Commission, by rule, may prescribe containing the rules of the clearing
agency and such other information and documents as the Commission, by
rule, may prescribe as necessary or appropriate in the public interest
or for the prompt and accurate clearance and settlement of securities
transactions.
(3) A clearing agency shall not be registered unless the Commission
determines that--
(A) Such clearing agency is so organized and has the capacity to
be able to facilitate the prompt and accurate clearance and
settlement of securities transactions and derivative agreements,
contracts, and transactions for which it is responsible, to
safeguard securities and funds in its custody or control or for
which it is responsible, to comply with the provisions of this
chapter and the rules and regulations thereunder, to enforce
(subject to any rule or order of the Commission pursuant to section
78q(d) or 78s(g)(2) of this title) compliance by its participants
with the rules of the clearing agency, and to carry out the purposes
of this section.
(B) Subject to the provisions of paragraph (4) of this
subsection, the rules of the clearing agency provide that any (i)
registered broker or dealer, (ii) other registered clearing agency,
(iii) registered investment company, (iv) bank, (v) insurance
company, or (vi) other person or class of persons as the Commission,
by rule, may from time to time designate as appropriate to the
development of a national system for the prompt and accurate
clearance and settlement of securities transactions may become a
participant in such clearing agency.
(C) The rules of the clearing agency assure a fair
representation of its shareholders (or members) and participants in
the selection of its directors and administration of its affairs.
(The Commission may determine that the representation of
participants is fair if they are afforded a reasonable opportunity
to acquire voting stock of the clearing agency, directly or
indirectly, in reasonable proportion to their use of such clearing
agency.)
(D) The rules of the clearing agency provide for the equitable
allocation of reasonable dues, fees, and other charges among its
participants.
(E) The rules of the clearing agency do not impose any schedule
of prices, or fix rates or other fees, for services rendered by its
participants.
(F) The rules of the clearing agency are designed to promote the
prompt and accurate clearance and settlement of securities
transactions and, to the extent applicable, derivative agreements,
contracts, and transactions, to assure the safeguarding of
securities and funds which are in the custody or control of the
clearing agency or for which it is responsible, to foster
cooperation and coordination with persons engaged in the clearance
and settlement of securities transactions, to remove impediments to
and perfect the mechanism of a national system for the prompt and
accurate clearance and settlement of securities transactions, and,
in general, to protect investors and the public interest; and are
not designed to permit unfair discrimination in the admission of
participants or among participants in the use of the clearing
agency, or to regulate by virtue of any authority conferred by this
chapter matters not related to the purposes of this section or the
administration of the clearing agency.
(G) The rules of the clearing agency provide that (subject to
any rule or order of the Commission pursuant to section 78q(d) or
78s(g)(2) of this title) its participants shall be appropriately
disciplined for violation of any provision of the rules of the
clearing agency by expulsion, suspension, limitation of activities,
functions, and operations, fine, censure, or any other fitting
sanction.
(H) The rules of the clearing agency are in accordance with the
provisions of paragraph (5) of this subsection, and, in general,
provide a fair procedure with respect to the disciplining of
participants, the denial of participation to any person seeking
participation therein, and the prohibition or limitation by the
clearing agency of any person with respect to access to services
offered by the clearing agency.
(I) The rules of the clearing agency do not impose any burden on
competition not necessary or appropriate in furtherance of the
purposes of this chapter.
(4)(A) A registered clearing agency may, and in cases in which the
Commission, by order, directs as appropriate in the public interest
shall, deny participation to any person subject to a statutory
disqualification. A registered clearing agency shall file notice with
the Commission not less than thirty days prior to admitting any person
to participation, if the clearing agency 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.
(B) A registered clearing agency may deny participation to, or
condition the participation of, any person if such person does not meet
such standards of financial responsibility, operational capability,
experience, and competence as are prescribed by the rules of the
clearing agency. A registered clearing agency may examine and verify the
qualifications of an applicant to be a participant in accordance with
procedures established by the rules of the clearing agency.
(5)(A) In any proceeding by a registered clearing agency to
determine whether a participant should be disciplined (other than a
summary proceeding pursuant to subparagraph (C) of this paragraph), the
clearing agency shall bring specific charges, notify such participant
of, and give him an opportunity to defend against such charges, and keep
a record. A determination by the clearing agency to impose a
disciplinary sanction shall be supported by a statement setting forth--
(i) any act or practice in which such participant has been found
to have engaged, or which such participant has been found to have
omitted;
(ii) the specific provisions of the rules of the clearing agency
which any such act or practice, or omission to act, is deemed to
violate; and
(iii) the sanction imposed and the reasons therefor.
(B) In any proceeding by a registered clearing agency to determine
whether a person shall be denied participation or prohibited or limited
with respect to access to services offered by the clearing agency, the
clearing agency shall notify such person of, and give him an opportunity
to be heard upon, the specific grounds for denial or prohibition or
limitation under consideration and keep a record. A determination by the
clearing agency to deny participation or prohibit or limit a person with
respect to access to services offered by the clearing agency shall be
supported by a statement setting forth the specific grounds on which the
denial or prohibition or limitation is based.
(C) A registered clearing agency may summarily suspend and close the
accounts of a participant who (i) has been and is expelled or suspended
from any self-regulatory organization, (ii) is in default of any
delivery of funds or securities to the clearing agency, or (iii) is in
such financial or operating difficulty that the clearing agency
determines and so notifies the appropriate regulatory agency for such
participant that such suspension and closing of accounts are necessary
for the protection of the clearing agency, its participants, creditors,
or investors. A participant so summarily suspended shall be promptly
afforded an opportunity for a hearing by the clearing agency in
accordance with the provisions of subparagraph (A) of this paragraph.
The appropriate regulatory agency for such participant, by order, may
stay any such summary suspension on its own motion or upon application
by any person aggrieved thereby, if such appropriate regulatory agency
determines summarily or after notice and opportunity for hearing (which
hearing may consist solely of the submission of affidavits or
presentation of oral arguments) that such stay is consistent with the
public interest and protection of investors.
(6) No registered clearing agency shall prohibit or limit access by
any person to services offered by any participant therein.
(7)(A) A clearing agency that is regulated directly or indirectly by
the Commodity Futures Trading Commission through its association with a
designated contract market for security futures products that is a
national securities exchange registered pursuant to section 78f(g) of
this title, and that would be required to register pursuant to paragraph
(1) of this subsection only because it performs the functions of a
clearing agency with respect to security futures products effected
pursuant to the rules of the designated contract market with which such
agency is associated, is exempted from the provisions of this section
and the rules and regulations thereunder, except that if such a clearing
agency performs the functions of a clearing agency with respect to a
security futures product that is not cash settled, it must have
arrangements in place with a registered clearing agency to effect the
payment and delivery of the securities underlying the security futures
product.
(B) Any clearing agency that performs the functions of a clearing
agency with respect to security futures products must coordinate with
and develop fair and reasonable links with any and all other clearing
agencies that perform the functions of a clearing agency with respect to
security futures products, in order to permit, as of the compliance date
(as defined in section 78f(h)(6)(C) \1\ of this title), security futures
products to be purchased on one market and offset on another market that
trades such products.
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\1\ So in original. Probably should be ``section 78f(h)(7)(C)''.
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(8) A registered clearing agency shall be permitted to provide
facilities for the clearance and settlement of any derivative
agreements, contracts, or transactions that are excluded from the
Commodity Exchange Act [7 U.S.C. 1 et seq.], subject to the requirements
of this section and to such rules and regulations as the Commission may
prescribe as necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
this chapter.
(c) Registration of transfer agents
(1) Except as otherwise provided in this section, it shall be
unlawful for any transfer agent, unless registered in accordance with
this section, directly or indirectly, to make use of the mails or any
means or instrumentality of interstate commerce to perform the function
of a transfer agent with respect to any security registered under
section 78l of this title or which would be required to be registered
except for the exemption from registration provided by subsection
(g)(2)(B) or (g)(2)(G) of that section. The appropriate regulatory
agency, by rule or order, upon its own motion or upon application, may
conditionally or unconditionally exempt any person or security or class
of persons or securities from any provision of this section or any rule
or regulation prescribed under this section, if the appropriate
regulatory agency finds (A) that such exemption is in the public
interest and consistent with 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, and (B) the Commission does not object to such
exemption.
(2) A transfer agent may be registered by filing with the
appropriate regulatory agency for such transfer agent an application for
registration in such form and containing such information and documents
concerning such transfer agent and any persons associated with the
transfer agent as such appropriate regulatory agency may prescribe as
necessary or appropriate in furtherance of the purposes of this section.
Except as hereinafter provided, such registration shall become effective
45 days after receipt of such application by such appropriate regulatory
agency or within such shorter period of time as such appropriate
regulatory agency may determine.
(3) The appropriate regulatory agency for a transfer agent, by
order, shall deny registration to, censure, place limitations on the
activities, functions, or operations of, suspend for a period not
exceeding 12 months, or revoke the registration of such transfer agent,
if such appropriate regulatory agency finds, on the record after notice
and opportunity for hearing, that such denial, censure, placing of
limitations, suspension, or revocation is in the public interest and
that such transfer agent, whether prior or subsequent to becoming such,
or any person associated with such transfer agent, whether prior or
subsequent to becoming so associated--
(A) has committed or omitted any act, or is subject to an order
or finding, enumerated in subparagraph (A), (D), (E), (H), or (G) of
paragraph (4) of section 78o(b) of this title, has been convicted of
any offense specified in subparagraph (B) of such paragraph (4)
within ten years of the commencement of the proceedings under this
paragraph, or is enjoined from any action, conduct, or practice
specified in subparagraph (C) of such paragraph (4); or
(B) is subject to an order entered pursuant to subparagraph (C)
of paragraph (4) of this subsection barring or suspending the right
of such person to be associated with a transfer agent.
(4)(A) Pending final determination whether any registration by a
transfer agent under this subsection shall be denied, the appropriate
regulatory agency for such transfer agent, by order, may postpone the
effective date of such registration for a period not to exceed fifteen
days, but if, after notice and opportunity for hearing (which may
consist solely of affidavits and oral arguments), it shall appear to
such appropriate regulatory agency to be necessary or appropriate in the
public interest or for the protection of investors to postpone the
effective date of such registration until final determination, such
appropriate regulatory agency shall so order. Pending final
determination whether any registration under this subsection shall be
revoked, such appropriate regulatory agency, by order, may suspend such
registration, if such suspension appears to such appropriate regulatory
agency, after notice and opportunity for hearing, to be necessary or
appropriate in the public interest or for the protection of investors.
(B) A registered transfer agent may, upon such terms and conditions
as the appropriate regulatory agency for such transfer agent deems
necessary or appropriate in the public interest, for the protection of
investors, or in furtherance of the purposes of this section, withdraw
from registration by filing a written notice of withdrawal with such
appropriate regulatory agency. If such appropriate regulatory agency
finds that any transfer agent for which it is the appropriate regulatory
agency, is no longer in existence or has ceased to do business as a
transfer agent, such appropriate regulatory agency, by order, shall
cancel or deny the registration.
(C) The appropriate regulatory agency for a transfer agent, by
order, shall censure or place limitations on the activities or functions
of any person associated, seeking to become associated, or, at the time
of the alleged misconduct, associated or seeking to become associated
with the transfer agent, or suspend for a period not exceeding twelve
months or bar any such person from being associated with the transfer
agent, if the appropriate regulatory agency finds, on the record after
notice and opportunity for hearing, that such censure, placing of
limitations, suspension, or bar is in the public interest and that such
person has committed or omitted any act, or is subject to an order or
finding, enumerated in subparagraph (A), (D), (E), (H), or (G) or \2\
paragraph (4) of section 78o(b) of this title, has been convicted of any
offense specified in subparagraph (B) of such paragraph (4) within ten
years of the commencement of the proceedings under this paragraph, or is
enjoined from any action, conduct, or practice specified in subparagraph
(C) of such paragraph (4). It shall be unlawful for any person as to
whom such an order suspending or barring him from being associated with
a transfer agent is in effect willfully to become, or to be, associated
with a transfer agent without the consent of the appropriate regulatory
agency that entered the order and the appropriate regulatory agency for
that transfer agent. It shall be unlawful for any transfer agent to
permit such a person to become, or remain, a person associated with it
without the consent of such appropriate regulatory agencies, if the
transfer agent knew, or in the exercise of reasonable care should have
known, of such order. The Commission may establish, by rule, procedures
by which a transfer agent reasonably can determine whether a person
associated or seeking to become associated with it is subject to any
such order, and may require, by rule, that any transfer agent comply
with such procedures.
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\2\ So in original. Probably should be ``of''.
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(d) Activities of clearing agencies and transfer agents; enforcement by
appropriate regulatory agencies
(1) No registered clearing agency or registered transfer agent
shall, directly or indirectly, engage in any activity as clearing agency
or transfer agent in contravention of such rules and regulations (A) as
the Commission may prescribe as necessary or appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of this chapter, or (B) as the appropriate regulatory
agency for such clearing agency or transfer agent may prescribe as
necessary or appropriate for the safeguarding of securities and funds.
(2) With respect to any clearing agency or transfer agent for which
the Commission is not the appropriate regulatory agency, the appropriate
regulatory agency for such clearing agency or transfer agent may, in
accordance with section 1818 of title 12, enforce compliance by such
clearing agency or transfer agent with the provisions of this section,
sections 78q and 78s of this title, and the rules and regulations
thereunder. For purposes of the preceding sentence, any violation of any
such provision shall constitute adequate basis for the issuance of an
order under section 1818(b) or 1818(c) of title 12, and the participants
in any such clearing agency and the persons doing business with any such
transfer agent shall be deemed to be ``depositors'' as that term is used
in section 1818(c) of title 12.
(3)(A) With respect to any clearing agency or transfer agent for
which the Commission is not the appropriate regulatory agency, the
Commission and the appropriate regulatory agency for such clearing
agency or transfer agent shall consult and cooperate with each other,
and, as may be appropriate, with State banking authorities having
supervision over such clearing agency or transfer agent toward the end
that, to the maximum extent practicable, their respective regulatory
responsibilities may be fulfilled and the rules and regulations
applicable to such clearing agency or transfer agent may be in accord
with both sound banking practices and a national system for the prompt
and accurate clearance and settlement of securities transactions. In
accordance with this objective--
(i) the Commission and such appropriate regulatory agency shall,
at least fifteen days prior to the issuance for public comment of
any proposed rule or regulation or adoption of any rule or
regulation concerning such clearing agency or transfer agent,
consult and request the views of the other; and
(ii) such appropriate regulatory agency shall assume primary
responsibility to examine and enforce compliance by such clearing
agency or transfer agent with the provisions of this section and
sections 78q and 78s of this title.
(B) Nothing in the preceding subparagraph or elsewhere in this
chapter shall be construed to impair or limit (other than by the
requirement of notification) the Commission's authority to make rules
under any provision of this chapter or to enforce compliance pursuant to
any provision of this chapter by any clearing agency, transfer agent, or
person associated with a transfer agent with the provisions of this
chapter and the rules and regulations thereunder.
(4) Nothing in this section shall be construed to impair the
authority of any State banking authority or other State or Federal
regulatory authority having jurisdiction over a person registered as a
clearing agency, transfer agent, or person associated with a transfer
agent, to make and enforce rules governing such person which are not
inconsistent with this chapter and the rules and regulations thereunder.
(5) A registered transfer agent may not, directly or indirectly,
engage in any activity in connection with the guarantee of a signature
of an endorser of a security, including the acceptance or rejection of
such guarantee, in contravention of such rules and regulations as the
Commission may prescribe as necessary or appropriate in the public
interest, for the protection of investors, to facilitate the equitable
treatment of financial institutions which issue such guarantees, or
otherwise in furtherance of the purposes of this chapter.
(e) Physical movement of securities certificates
The Commission shall use its authority under this chapter to end the
physical movement of securities certificates in connection with the
settlement among brokers and dealers of transactions in securities
consummated by means of the mails or any means or instrumentalities of
interstate commerce.
(f) Rules concerning transfer of securities and rights and obligations
of involved or affected parties
(1) Notwithstanding any provision of State law, except as provided
in paragraph (3), if the Commission makes each of the findings described
in paragraph (2)(A), the Commission may adopt rules concerning--
(A) the transfer of certificated or uncertificated securities
(other than government securities issued pursuant to chapter 31 of
title 31 or securities otherwise processed within a book-entry
system operated by the Federal Reserve banks pursuant to a Federal
book-entry regulation) or limited interests (including security
interests) therein; and
(B) rights and obligations of purchasers, sellers, owners,
lenders, borrowers, and financial intermediaries (including brokers,
dealers, banks, and clearing agencies) involved in or affected by
such transfers, and the rights of third parties whose interests in
such securities devolve from such transfers.
(2)(A) The findings described in this paragraph are findings by the
Commission that--
(i) such rule is necessary or appropriate for the protection of
investors or in the public interest and is reasonably designed to
promote the prompt, accurate, and safe clearance and settlement of
securities transactions;
(ii) in the absence of a uniform rule, the safe and efficient
operation of the national system for clearance and settlement of
securities transactions will be, or is, substantially impeded; and
(iii) to the extent such rule will impair or diminish, directly
or indirectly, rights of persons specified in paragraph (1)(B) under
State law concerning transfers of securities (or limited interests
therein), the benefits of such rule outweigh such impairment or
diminution of rights.
(B) In making the findings described in subparagraph (A), the
Commission shall give consideration to the recommendations of the
Advisory Committee established under paragraph (4), and it shall consult
with and consider the views of the Secretary of the Treasury and the
Board of Governors of the Federal Reserve System. If the Secretary of
the Treasury objects, in writing, to any proposed rule of the Commission
on the basis of the Secretary's view on the issues described in clauses
(i), (ii), and (iii) of subparagraph (A), the Commission shall consider
all feasible alternatives to the proposed rule, and it shall not adopt
any such rule unless the Commission makes an explicit finding that the
rule is the most practicable method for achieving safe and efficient
operation of the national clearance and settlement system.
(3) Any State may, prior to the expiration of 2 years after the
Commission adopts a rule under this subsection, enact a statute that
specifically refers to this subsection and the specific rule thereunder
and establishes, prospectively from the date of enactment of the State
statute, a provision that differs from that applicable under the
Commission's rule.
(4)(A) Within 90 days after October 16, 1990, the Commission shall
(and at such times thereafter as the Commission may determine, the
Commission may), after consultation with the Secretary of the Treasury
and the Board of Governors of the Federal Reserve System, establish an
advisory committee under the Federal Advisory Committee Act (5 U.S.C.
App.). The Advisory Committee shall be directed to consider and report
to the Commission on such matters as the Commission, after consultation
with the Secretary of the Treasury and the Board of Governors of the
Federal Reserve System, determines, including the areas, if any, in
which State commercial laws and related Federal laws concerning the
transfer of certificated or uncertificated securities, limited interests
(including security interests) in such securities, or the creation or
perfection of security interests in such securities do not provide the
necessary certainty, uniformity, and clarity for purchasers, sellers,
owners, lenders, borrowers, and financial intermediaries concerning
their respective rights and obligations.
(B) The Advisory Committee shall consist of 15 members, of which--
(i) 11 shall be designated by the Commission in accordance with
the Federal Advisory Committee Act; and
(ii) 2 each shall be designated by the Board of Governors of the
Federal Reserve System and the Secretary of the Treasury.
(C) The Advisory Committee shall conduct its activities in
accordance with the Federal Advisory Committee Act. Within 6 months of
its designation, or such longer time as the Commission may designate,
the Advisory Committee shall issue a report to the Commission, and shall
cause copies of that report to be delivered to the Secretary of the
Treasury and the Chairman of the Board of Governors of the Federal
Reserve System.
(June 6, 1934, ch. 404, title I, Sec. 17A, as added Pub. L. 94-29,
Sec. 15, June 4, 1975, 89 Stat. 141; amended Pub. L. 100-181, title III,
Sec. 322, Dec. 4, 1987, 101 Stat. 1257; Pub. L. 101-429, title II,
Sec. 206, Oct. 15, 1990, 104 Stat. 941; Pub. L. 101-432, Sec. 5, Oct.
16, 1990, 104 Stat. 973; Pub. L. 101-550, title II, Sec. 203(c)(1), Nov.
15, 1990, 104 Stat. 2718; Pub. L. 106-554, Sec. 1(a)(5) [title II,
Secs. 206(d), 207], Dec. 21, 2000, 114 Stat. 2763, 2763A-431, 2763A-434;
Pub. L. 107-204, title VI, Sec. 604(c)(1)(C), July 30, 2002, 116 Stat.
796.)
References in Text
This chapter, referred to in subsecs. (a)(2), (b)(3)(A), (F), (I),
(8), (d)(1), (3)(B), (4), (5), and (e), was in the original ``this
title''. See References in Text note set out under section 78a of this
title.
The Commodity Exchange Act, referred to in subsec. (b)(8), is act
Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified
generally to chapter 1 (Sec. 1 et seq.) of Title 7, Agriculture. For
complete classification of this Act to the Code, see section 1 of Title
7 and Tables.
The Federal Advisory Committee Act, referred to in subsec. (f)(4),
is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended, which is set
out in the Appendix to Title 5, Government Organization and Employees.
Amendments
2002--Subsec. (c)(3)(A), (4)(C). Pub. L. 107-204 inserted ``, or is
subject to an order or finding,'' before ``enumerated'' and substituted
``(H), or (G)'' for ``or (G)''.
2000--Subsec. (b)(3)(A). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 207(1)], inserted ``and derivative agreements, contracts, and
transactions'' after ``prompt and accurate clearance and settlement of
securities transactions''.
Subsec. (b)(3)(F). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 207(2)], inserted ``and, to the extent applicable, derivative
agreements, contracts, and transactions'' after ``designed to promote
the prompt and accurate clearance and settlement of securities
transactions''.
Subsec. (b)(7). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 206(d)], added par. (7).
Subsec. (b)(8). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 207(3)], added par. (8).
1990--Subsec. (a)(2). Pub. L. 101-432, Sec. 5(a), amended par. (2)
generally. Prior to amendment, par. (2) read as follows: ``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 chapter 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
chapter to assure equal regulation under this chapter of registered
clearing agencies and registered transfer agents.''
Subsec. (c)(3)(A), (4)(C). Pub. L. 101-550 substituted ``(A), (D),
(E), or (G)'' for ``(A), (D), or (E)''.
Subsec. (d)(5). Pub. L. 101-429 added par. (5).
Subsec. (f). Pub. L. 101-432, Sec. 5(b), added subsec. (f).
1987--Subsec. (c)(2). Pub. L. 100-181, Sec. 322(1), (2), inserted
``and any persons associated with the transfer agent'' in first sentence
and substituted ``45'' for ``thirty'' in second sentence.
Subsec. (c)(3), (4). Pub. L. 100-181, Sec. 322(3)-(5), added par.
(3), struck out former par. (3)(A) which read as follows: ``The
appropriate regulatory agency for a transfer agent, by order, shall deny
registration to, censure, place limitations on the activities,
functions, or operations of, suspend for a period not exceeding twelve
months, or revoke the registration of such transfer agent, if such
appropriate regulatory agency finds, on the record after notice and
opportunity for hearing, that such denial, censure, placing of
limitations, suspension, or revocation is in the public interest and
that such transfer agent has willfully violated or is unable to comply
with any provision of this section or section 78q of this title or the
rules or regulations thereunder.'', redesignated subpars. (B) and (C) of
former par. (3) as subpars. (A) and (B), respectively, of new par. (4),
and added subpar. (C) to such par. (4).
Subsec. (d)(3)(B). Pub. L. 100-181, Sec. 322(6), substituted
``clearing agency, transfer agent, or person associated with a transfer
agent'' for ``clearing agency or transfer agent''.
Subsec. (d)(4). Pub. L. 100-181, Sec. 322(7), substituted ``,
transfer agent, or person associated with a transfer agent,'' for ``or
transfer agent''.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-429 effective Oct. 15, 1990, with
provisions relating to civil penalties and accounting and disgorgement,
see section 1(c)(1), (2) of Pub. L. 101-429, set out in a note under
section 77g of this title.
Effective Date
Section effective June 4, 1975, except for subsecs. (b) and (c)
which are effective 180 days after June 4, 1975, see section 31(a) of
Pub. L. 94-29, set out as a note under section 78b of this title.
Clearance and Settlement of Transactions; Report to Congress
Section 8(b) of Pub. L. 101-432 directed Securities and Exchange
Commission, in consultation with Commodity Futures Trading Commission,
Board of Governors of the Federal Reserve System, and other relevant
regulatory authorities, to examine progress toward establishing linked
or coordinated facilities for clearance and settlement of transactions
in securities, securities options, contracts of sale for future delivery
and options thereon, and commodity options, and to submit to Congress,
not later than 2 years from Oct. 16, 1990, a report detailing and
evaluating such progress.
Section Referred to in Other Sections
This section is referred to in sections 77c, 78c, 78o, 78q, 78s,
78u-2, 78y of this title; title 7 section 2; title 11 section 101.
