15 U.S.C. § 78dd — Foreign securities exchanges
submitted 92 years ago by ch. 404 to r/title-15-COMMERCE-AND-TRADE · 320 words · no verdicts yet
This law limits foreign-exchange trades in securities of U.S.-linked issuers. Brokers can't use U.S. mail or interstate commerce for such trades if it breaks SEC anti-evasion rules. Securities and swap business done entirely outside U.S. jurisdiction is exempt, unless used to evade the law.
(a) Unlawful transactions on foreign securities exchanges
It's illegal for a broker or dealer* to use the mail, or any other tool of interstate commerce*, to carry out a trade on a foreign stock exchange* — one outside U.S. jurisdiction — if that trade involves a security* whose issuer* is based in the United States (a U.S. resident, organized under U.S. law, or headquartered here), and if doing so breaks rules the Commission* sets as necessary or appropriate to protect the public interest, protect investors, or stop people from evading this chapter.
(b) Business without the jurisdiction of the United States
This chapter's rules — and any rules issued under it — generally don't apply to someone doing securities business entirely outside U.S. jurisdiction, unless they're doing it in a way that breaks Commission rules meant to prevent evasion of this chapter.
(c) Rule of construction
The provisions that the Wall Street Transparency and Accountability Act of 2010 added to this chapter — and any rules under them — generally don't apply to someone doing security-based swap* business entirely outside U.S. jurisdiction, unless they're doing it in a way that breaks Commission rules meant to prevent evasion of those added provisions. But this doesn't limit the Commission's authority under whatever parts of this chapter were already in effect before July 21, 2010.
It shall be unlawful for any broker or dealer*, directly or indirectly, to make use of the mails or of any means or instrumentality of interstate commerce* for the purpose of effecting on an exchange* not within or subject to the jurisdiction of the United States, any transaction in any security* the issuer* of which is a resident of, or is organized under the laws of, or has its principal place of business in, a place within or subject to the jurisdiction of the United States, 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 or to prevent the evasion of this chapter.
The provisions of this chapter or of any rule or regulation thereunder shall not apply to any person* insofar as he transacts a business in securities without the jurisdiction of the United States, unless he transacts such business in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate to prevent the evasion of this chapter.
No provision of this chapter that was added by the Wall Street Transparency and Accountability Act of 2010, or any rule or regulation thereunder, shall apply to any person insofar as such person transacts a business in security-based swaps without the jurisdiction of the United States, unless such person transacts such business in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate to prevent the evasion of any provision of this chapter that was added by the Wall Street Transparency and Accountability Act of 2010. This subsection shall not be construed to limit the jurisdiction of the Commission under any provision of this chapter, as in effect prior to July 21, 2010.
Source credit: (June 6, 1934, ch. 404, title I, § 30, 48 Stat. 904; Pub. L. 111–203, title VII, § 772(b), July 21, 2010, 124 Stat. 1802.)
- 1934Enacted · Act of June 6, 1934, ch. 404 · 48 Stat. 904
- 2010Amended · Pub. L. 111-203 · 124 Stat. 1802
A history note hasn’t been published yet. The record shows enactment by ch. 404 on 1934-06-06.
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