---
kind: "section"
citation: "15 U.S.C. § 78e"
title: "15"
title_heading: "Commerce and Trade"
number: "78e"
heading: "Transactions on unregistered exchanges"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/78e"
units:
  - "Chapter 2B — Securities Exchanges"
---

# §78e. Transactions on unregistered exchanges


It shall be unlawful for any [broker](/usc/15/78c.md?p=a-4-A), [dealer](/usc/15/78c.md?p=a-5-A), or [exchange](/usc/15/78c.md?p=a-1), directly or indirectly, to make use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) for the purpose of using any [facility](/usc/15/78c.md?p=a-2) of an [exchange](/usc/15/78c.md?p=a-1) within or subject to the jurisdiction of the United States to effect any transaction in a [security](/usc/15/78c.md?p=a-10), or to report any such transaction, unless such [exchange](/usc/15/78c.md?p=a-1) (1) is registered as national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1) under [section 78f of this title](/usc/15/78f.md), or (2) is exempted from such registration upon application by the [exchange](/usc/15/78c.md?p=a-1) because, in the opinion of the [Commission](/usc/15/78c.md?p=a-15), by reason of the limited volume of transactions effected on such [exchange](/usc/15/78c.md?p=a-1), it is not practicable and not necessary or appropriate in the public interest or for the protection of investors to require such registration.


## Source credit

(June 6, 1934, ch. 404, title I, § 5, 48 Stat. 885.)

## Notes

### Executive Documents

### 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, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.