Section 1 Short title
This Act may be cited as the “Defining Dealer Act”.
Defining Dealer Act
A BILL
To amend the Securities Exchange Act of 1934 to provide a definition for dealer.
Sec. 2 Definition of the term dealer
Amendment to definition of the term dealer—
In general— Subparagraph (A) of section 3(a)(5) of the Securities Exchange Act of 1934 (15 U.S.C. 78C(a)(5)) is amended to read as follows:
“(A) Definition of dealer—The term dealer means any person engaged in the business of effecting securities transactions for customers both—
“(i) by buying from their customers securities (not including security-based swaps, other than security-based swaps with or for persons that are not eligible contract participants) for such person’s own account through a broker or otherwise with a view of disposing of them elsewhere; and
“(ii) by selling to their customers securities (not including security-based swaps, other than security-based swaps with or for persons that are not eligible contract participants) which they have purchased for their own account elsewhere.”
Effective date— The amendment made by this subsection shall take effect on the date that is 30 days after the date of the enactment of this Act.
Treatment of certain orders and judgments—
Transition period— With respect to a covered action entered between the date of the enactment of this Act and the effective date described in subsection (a)(2) that would not have been entered if the amendment described in subsection (a)(1) was in effect at the time such covered action was entered, the applicable court or the Securities and Exchange Commission shall vacate the covered action not later than 5 years after the date of the enactment of this Act.
Prior judgments— With respect to a covered action entered prior to the date of the enactment of this Act that would not have been entered if amendment described in subsection (a)(1) was in effect at the time such covered action was entered, the applicable court or the Securities and Exchange Commission shall vacate the covered action as soon as practicable.
Covered action— In this subsection, the term covered action means an order or judgment (including a consent order) entered by a court or the Securities and Exchange Commission.