15 U.S.C. § 78j — Manipulative and deceptive devices

It's illegal for anyone, using interstate commerce, the mail, or an exchange, directly or indirectly, to: (a) (1) Make a short sale, or use a stop-loss order, on a security (other than a government security), in violation of SEC rules meant to protect investors. (2) This rule doesn't apply to security futures products. (b) Use any manipulative or deceptive device in buying or selling an exchange-listed security, an unlisted security, or a security-based swap agreement, in violation of SEC rules meant to protect investors. (c) (1) Take part in, accept, or help with a securities lending or borrowing transaction, in violation of SEC rules meant to protect investors. (2) This doesn't limit the power of federal banking regulators, the National Credit Union Administration, or other federal agencies to write their own rules on securities lending to protect a financial institution's safety or the financial system generally. Rules made under subsection (b) that ban fraud, manipulation, or insider trading — but not rules that just require reports or recordkeeping — apply to security-based swap agreements the same way they apply to securities. Court decisions interpreting section 77q(a), and sections 78i, 78o, 78p, 78t, and 78u–1 — plus rules made under them — also apply to security-based swap agreements the same way.