---
kind: "section"
citation: "15 U.S.C. § 78k–1"
title: "15"
title_heading: "Commerce and Trade"
number: "78k–1"
heading: "National market system for securities; securities information processors"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/78k-1"
units:
  - "Chapter 2B — Securities Exchanges"
---

# §78k–1. National market system for securities; securities information processors

- (a) **Congressional findings; facilitating establishment of national market system for securities; designation of qualified securities—**
  - (1) The Congress finds that—
    - (A) The [securities](/usc/15/78c.md?p=a-10) markets are an important national asset which must be preserved and strengthened.
    - (B) New data processing and communications techniques create the opportunity for more efficient and effective market operations.
    - (C) It is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure—
      - (i) economically efficient execution of [securities](/usc/15/78c.md?p=a-10) transactions;
      - (ii) fair competition among [brokers](/usc/15/78c.md?p=a-4-A) and [dealers](/usc/15/78c.md?p=a-5-A), among [exchange](/usc/15/78c.md?p=a-1) markets, and between [exchange](/usc/15/78c.md?p=a-1) markets and markets other than [exchange](/usc/15/78c.md?p=a-1) markets;
      - (iii) the availability to [brokers](/usc/15/78c.md?p=a-4-A), [dealers](/usc/15/78c.md?p=a-5-A), and investors of information with respect to quotations for and transactions in [securities](/usc/15/78c.md?p=a-10);
      - (iv) the practicability of [brokers](/usc/15/78c.md?p=a-4-A) executing investors’ orders in the best market; and
      - (v) an opportunity, consistent with the provisions of clauses (i) and (iv) of this subparagraph, for investors’ orders to be executed without the participation of a [dealer](/usc/15/78c.md?p=a-5-A).
    - (D) The linking of all markets for qualified [securities](/usc/15/78c.md?p=a-10) through communication and data processing [facilities](/usc/15/78c.md?p=a-2) will foster efficiency, enhance competition, increase the information available to [brokers](/usc/15/78c.md?p=a-4-A), [dealers](/usc/15/78c.md?p=a-5-A), and investors, facilitate the offsetting of investors’ orders, and contribute to best execution of such orders.
  - (2) The [Commission](/usc/15/78c.md?p=a-15) is directed, therefore, having due regard for the public interest, the protection of investors, and the maintenance of fair and orderly markets, to use its authority under this chapter to facilitate the establishment of a national market system for [securities](/usc/15/78c.md?p=a-10) (which may include subsystems for particular types of [securities](/usc/15/78c.md?p=a-10) with unique trading characteristics) in accordance with the findings and to carry out the objectives set forth in paragraph (1) of this subsection. The [Commission](/usc/15/78c.md?p=a-15), by rule, shall designate the [securities](/usc/15/78c.md?p=a-10) or classes of [securities](/usc/15/78c.md?p=a-10) qualified for trading in the national market system from among [securities](/usc/15/78c.md?p=a-10) other than [exempted securities](/usc/15/78c.md?p=a-12-A). ([Securities](/usc/15/78c.md?p=a-10) or classes of [securities](/usc/15/78c.md?p=a-10) so designated hereinafter[^1] in this section referred to as “qualified [securities](/usc/15/78c.md?p=a-10)”.)
  - (3) The [Commission](/usc/15/78c.md?p=a-15) is authorized in furtherance of the directive in paragraph (2) of this subsection—
    - (A) to create one or more advisory committees pursuant to [chapter 10](/usc/5/chptI/ch10.md) of title 5 (which shall be in addition to the National Market Advisory [Board](/usc/15/78c.md?p=a-73) established pursuant to [subsection (d)](#d) of this section),[^2] and to employ one or more outside experts;
    - (B) by rule or order, to authorize or require [self-regulatory organizations](/usc/15/78c.md?p=a-26) to act jointly with respect to matters as to which they share authority under this chapter in planning, developing, operating, or regulating a national market system (or a subsystem thereof) or one or more [facilities](/usc/15/78c.md?p=a-2) thereof; and
    - (C) to conduct studies and make recommendations to the Congress from time to time as to the possible need for modifications of the scheme of self-regulation provided for in this chapter so as to adapt it to a national market system.
- (b) **Securities information processors; registration; withdrawal of registration; access to services; censure; suspension or revocation of registration—**
  - (1) Except as otherwise provided in this section, it shall be unlawful for any [securities information processor](/usc/15/78c.md?p=a-22-A) unless registered in accordance with this subsection, directly or indirectly, to make use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) to perform the functions of a [securities information processor](/usc/15/78c.md?p=a-22-A). The [Commission](/usc/15/78c.md?p=a-15), by rule or order, upon its own motion or upon application, may conditionally or unconditionally exempt any [securities information processor](/usc/15/78c.md?p=a-22-A) or class of [securities information processors](/usc/15/78c.md?p=a-22-A) or [security](/usc/15/78c.md?p=a-10) or class of [securities](/usc/15/78c.md?p=a-10) from any provision of this section or the rules or regulations thereunder, if the [Commission](/usc/15/78c.md?p=a-15) finds that such exemption is consistent with the public interest, the protection of investors, and the purposes of this section, including the maintenance of fair and orderly markets in [securities](/usc/15/78c.md?p=a-10) and the removal of impediments to and perfection of the mechanism of a national market system: Provided, however, That a [securities information processor](/usc/15/78c.md?p=a-22-A) not acting as the [exclusive processor](/usc/15/78c.md?p=a-22-B) of any information with respect to quotations for or transactions in [securities](/usc/15/78c.md?p=a-10) is exempt from the requirement to register in accordance with this subsection unless the [Commission](/usc/15/78c.md?p=a-15), by rule or order, finds that the registration of such [securities information processor](/usc/15/78c.md?p=a-22-A) is necessary or appropriate in the public interest, for the protection of investors, or for the achievement of the purposes of this section.
  - (2) A [securities information processor](/usc/15/78c.md?p=a-22-A) may be registered by filing with the [Commission](/usc/15/78c.md?p=a-15) an application for registration in such form as the [Commission](/usc/15/78c.md?p=a-15), by rule, may prescribe containing the address of its principal office, or offices, the names of the [securities](/usc/15/78c.md?p=a-10) and markets for which it is then acting and for which it proposes to act as a [securities information processor](/usc/15/78c.md?p=a-22-A), and such other information and documents as the [Commission](/usc/15/78c.md?p=a-15), by rule, may prescribe with regard to performance capability, standards and procedures for the collection, processing, distribution, and publication of information with respect to quotations for and transactions in [securities](/usc/15/78c.md?p=a-10), personnel qualifications, financial condition, and such other matters as the [Commission](/usc/15/78c.md?p=a-15) determines to be germane to the provisions of this chapter and the rules and regulations thereunder, or necessary or appropriate in furtherance of the purposes of this section.
  - (3) The [Commission](/usc/15/78c.md?p=a-15) shall, upon the filing of an application for registration pursuant to paragraph (2) of this subsection, publish notice of the filing and afford interested [persons](/usc/15/78c.md?p=a-9) an opportunity to submit written data, views, and arguments concerning such application. Within ninety days of the date of the publication of such notice (or within such longer period as to which the [applicant](/usc/15/7a.md?p=3) consents) the [Commission](/usc/15/78c.md?p=a-15) shall—
    - (A) by order grant such registration, or
    - (B) institute proceedings to determine whether registration should be denied. Such proceedings shall include notice of the grounds for denial under consideration and opportunity for hearing and shall be concluded within one hundred eighty days of the date of publication of notice of the filing of the application for registration. At the conclusion of such proceedings the [Commission](/usc/15/78c.md?p=a-15), by order, shall grant or deny such registration. The [Commission](/usc/15/78c.md?p=a-15) may extend the time for the conclusion of such proceedings for up to sixty days if it finds good cause for such extension and publishes its reasons for so finding or for such longer periods as to which the [applicant](/usc/15/7a.md?p=3) consents.

    The [Commission](/usc/15/78c.md?p=a-15) shall grant the registration of a [securities information processor](/usc/15/78c.md?p=a-22-A) if the [Commission](/usc/15/78c.md?p=a-15) finds that such [securities information processor](/usc/15/78c.md?p=a-22-A) is so organized, and has the capacity, to be able to assure the prompt, accurate, and reliable performance of its functions as a [securities information processor](/usc/15/78c.md?p=a-22-A), comply with the provisions of this chapter and the rules and regulations thereunder, carry out its functions in a manner consistent with the purposes of this section, and, insofar as it is acting as an [exclusive processor](/usc/15/78c.md?p=a-22-B), operate fairly and efficiently. The [Commission](/usc/15/78c.md?p=a-15) shall deny the registration of a [securities information processor](/usc/15/78c.md?p=a-22-A) if the [Commission](/usc/15/78c.md?p=a-15) does not make any such finding.

  - (4) A registered [securities information processor](/usc/15/78c.md?p=a-22-A) may, upon such terms and conditions as the [Commission](/usc/15/78c.md?p=a-15) deems necessary or appropriate in the public interest or for the protection of investors, withdraw from registration by filing a written notice of withdrawal with the [Commission](/usc/15/78c.md?p=a-15). If the [Commission](/usc/15/78c.md?p=a-15) finds that any registered [securities information processor](/usc/15/78c.md?p=a-22-A) is no longer in existence or has ceased to do business in the capacity specified in its application for registration, the [Commission](/usc/15/78c.md?p=a-15), by order, shall cancel the registration.
  - (5)
    - (A) If any registered [securities information processor](/usc/15/78c.md?p=a-22-A) prohibits or limits any [person](/usc/15/78c.md?p=a-9) in respect of access to services offered, directly or indirectly, by such [securities information processor](/usc/15/78c.md?p=a-22-A), the registered [securities information processor](/usc/15/78c.md?p=a-22-A) shall promptly file notice thereof with the [Commission](/usc/15/78c.md?p=a-15). The notice shall be in such form and contain such information as the [Commission](/usc/15/78c.md?p=a-15), by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors. Any prohibition or limitation on access to services with respect to which a registered [securities information processor](/usc/15/78c.md?p=a-22-A) is required by this paragraph to file notice shall be subject to review by the [Commission](/usc/15/78c.md?p=a-15) on its own motion, or upon application by any [person](/usc/15/78c.md?p=a-9) aggrieved thereby filed within thirty days after such notice has been filed with the [Commission](/usc/15/78c.md?p=a-15) and received by such aggrieved [person](/usc/15/78c.md?p=a-9), or within such longer period as the [Commission](/usc/15/78c.md?p=a-15) may determine. Application to the [Commission](/usc/15/78c.md?p=a-15) for review, or the institution of review by the [Commission](/usc/15/78c.md?p=a-15) on its own motion, shall not operate as a stay of such prohibition or limitation, unless the [Commission](/usc/15/78c.md?p=a-15) otherwise orders, summarily or after notice and opportunity for hearing on the question of a stay (which hearing may consist solely of the submission of affidavits or presentation of oral arguments). The [Commission](/usc/15/78c.md?p=a-15) shall establish for appropriate cases an expedited procedure for consideration and determination of the question of a stay.
    - (B) In any proceeding to review the prohibition or limitation of any [person](/usc/15/78c.md?p=a-9) in respect of access to services offered by a registered [securities information processor](/usc/15/78c.md?p=a-22-A), if the [Commission](/usc/15/78c.md?p=a-15) finds, after notice and opportunity for hearing, that such prohibition or limitation is consistent with the provisions of this chapter and the rules and regulations thereunder and that such [person](/usc/15/78c.md?p=a-9) has not been discriminated against unfairly, the [Commission](/usc/15/78c.md?p=a-15), by order, shall dismiss the proceeding. If the [Commission](/usc/15/78c.md?p=a-15) does not make any such finding or if it finds that such prohibition or limitation imposes any burden on competition not necessary or appropriate in furtherance of the purposes of this chapter, the [Commission](/usc/15/78c.md?p=a-15), by order, shall set aside the prohibition or limitation and require the registered [securities information processor](/usc/15/78c.md?p=a-22-A) to permit such [person](/usc/15/78c.md?p=a-9) access to services offered by the registered [securities information processor](/usc/15/78c.md?p=a-22-A).
  - (6) The [Commission](/usc/15/78c.md?p=a-15), by order, may censure or place limitations upon the activities, functions, or operations of any registered [securities information processor](/usc/15/78c.md?p=a-22-A) or suspend for a period not exceeding twelve months or revoke the registration of any such processor, if the [Commission](/usc/15/78c.md?p=a-15) finds, on the record after notice and opportunity for hearing, that such censure, placing of limitations, suspension, or revocation is in the public interest, necessary or appropriate for the protection of investors or to assure the prompt, accurate, or reliable performance of the functions of such [securities information processor](/usc/15/78c.md?p=a-22-A), and that such [securities information processor](/usc/15/78c.md?p=a-22-A) has violated or is unable to comply with any provision of this chapter or the rules or regulations thereunder.
- (c) **Rules and regulations covering use of mails or other means or instrumentalities of interstate commerce; reports of purchase or sale of qualified securities; limiting registered securities transactions to national securities exchanges—**
  - (1) No [self-regulatory organization](/usc/15/78c.md?p=a-26), [member](/usc/15/78c.md?p=a-3-A) thereof, [securities information processor](/usc/15/78c.md?p=a-22-A), [broker](/usc/15/78c.md?p=a-4-A), or [dealer](/usc/15/78c.md?p=a-5-A) shall make use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) to collect, process, distribute, publish, or prepare for distribution or publication any information with respect to quotations for or transactions in any [security](/usc/15/78c.md?p=a-10) other than an [exempted security](/usc/15/78c.md?p=a-12-A), to assist, participate in, or coordinate the distribution or publication of such information, or to effect any transaction in, or to induce or attempt to induce the [purchase](/usc/15/78c.md?p=a-13) or sale of, any such [security](/usc/15/78c.md?p=a-10) in contravention of such rules and regulations as the [Commission](/usc/15/78c.md?p=a-15) shall prescribe as necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of this chapter to—
    - (A) prevent the use, distribution, or publication of fraudulent, deceptive, or manipulative information with respect to quotations for and transactions in such [securities](/usc/15/78c.md?p=a-10);
    - (B) assure the prompt, accurate, reliable, and fair collection, processing, distribution, and publication of information with respect to quotations for and transactions in such [securities](/usc/15/78c.md?p=a-10) and the fairness and usefulness of the form and content of such information;
    - (C) assure that all [securities information processors](/usc/15/78c.md?p=a-22-A) may, for purposes of distribution and publication, obtain on fair and reasonable terms such information with respect to quotations for and transactions in such [securities](/usc/15/78c.md?p=a-10) as is collected, processed, or prepared for distribution or publication by any [exclusive processor](/usc/15/78c.md?p=a-22-B) of such information acting in such capacity;
    - (D) assure that all [exchange](/usc/15/78c.md?p=a-1) [members](/usc/15/78c.md?p=a-3-A), [brokers](/usc/15/78c.md?p=a-4-A), [dealers](/usc/15/78c.md?p=a-5-A), [securities information processors](/usc/15/78c.md?p=a-22-A), and, subject to such limitations as the [Commission](/usc/15/78c.md?p=a-15), by rule, may impose as necessary or appropriate for the protection of investors or maintenance of fair and orderly markets, all other [persons](/usc/15/78c.md?p=a-9) may obtain on terms which are not unreasonably discriminatory such information with respect to quotations for and transactions in such [securities](/usc/15/78c.md?p=a-10) as is published or distributed by any [self-regulatory organization](/usc/15/78c.md?p=a-26) or [securities information processor](/usc/15/78c.md?p=a-22-A);
    - (E) assure that all [exchange](/usc/15/78c.md?p=a-1) [members](/usc/15/78c.md?p=a-3-A), [brokers](/usc/15/78c.md?p=a-4-A), and [dealers](/usc/15/78c.md?p=a-5-A) transmit and direct orders for the [purchase](/usc/15/78c.md?p=a-13) or sale of qualified [securities](/usc/15/78c.md?p=a-10) in a manner consistent with the establishment and operation of a national market system; and
    - (F) assure equal regulation of all markets for qualified [securities](/usc/15/78c.md?p=a-10) and all [exchange](/usc/15/78c.md?p=a-1) [members](/usc/15/78c.md?p=a-3-A), [brokers](/usc/15/78c.md?p=a-4-A), and [dealers](/usc/15/78c.md?p=a-5-A) effecting transactions in such [securities](/usc/15/78c.md?p=a-10).
  - (2) The [Commission](/usc/15/78c.md?p=a-15), by rule, as it deems necessary or appropriate in the public interest or for the protection of investors, may require any [person](/usc/15/78c.md?p=a-9) who has effected the [purchase](/usc/15/78c.md?p=a-13) or sale of any qualified [security](/usc/15/78c.md?p=a-10) by use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) to report such [purchase](/usc/15/78c.md?p=a-13) or sale to a registered [securities information processor](/usc/15/78c.md?p=a-22-A), national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1), or registered [securities](/usc/15/78c.md?p=a-10) association and require such processor, [exchange](/usc/15/78c.md?p=a-1), or association to make appropriate distribution and publication of information with respect to such [purchase](/usc/15/78c.md?p=a-13) or sale.
  - (3)
    - (A) The [Commission](/usc/15/78c.md?p=a-15), by rule, is authorized to prohibit [brokers](/usc/15/78c.md?p=a-4-A) and [dealers](/usc/15/78c.md?p=a-5-A) from effecting transactions in [securities](/usc/15/78c.md?p=a-10) registered pursuant to [section 78l(b)](/usc/15/78l.md?p=b) of this title otherwise than on a national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1), if the [Commission](/usc/15/78c.md?p=a-15) finds, on the record after notice and opportunity for hearing, that—
      - (i) as a result of transactions in such [securities](/usc/15/78c.md?p=a-10) effected otherwise than on a national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1) the fairness or orderliness of the markets for such [securities](/usc/15/78c.md?p=a-10) has been affected in a manner contrary to the public interest or the protection of investors;
      - (ii) no rule of any national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1) unreasonably impairs the ability of any [dealer](/usc/15/78c.md?p=a-5-A) to solicit or effect transactions in such [securities](/usc/15/78c.md?p=a-10) for his own account or unreasonably restricts competition among [dealers](/usc/15/78c.md?p=a-5-A) in such [securities](/usc/15/78c.md?p=a-10) or between [dealers](/usc/15/78c.md?p=a-5-A) acting in the capacity of [market makers](/usc/15/78c.md?p=a-38) who are specialists in such [securities](/usc/15/78c.md?p=a-10) and such [dealers](/usc/15/78c.md?p=a-5-A) who are not specialists in such [securities](/usc/15/78c.md?p=a-10), and
      - (iii) the maintenance or restoration of fair and orderly markets in such [securities](/usc/15/78c.md?p=a-10) may not be assured through other lawful means under this chapter.

      The [Commission](/usc/15/78c.md?p=a-15) may conditionally or unconditionally exempt any [security](/usc/15/78c.md?p=a-10) or transaction or any class of [securities](/usc/15/78c.md?p=a-10) or transactions from any such prohibition if the [Commission](/usc/15/78c.md?p=a-15) deems such exemption consistent with the public interest, the protection of investors, and the maintenance of fair and orderly markets.

    - (B) For the purposes of subparagraph (A) of this paragraph, the ability of a [dealer](/usc/15/78c.md?p=a-5-A) to solicit or effect transactions in [securities](/usc/15/78c.md?p=a-10) for his own account shall not be deemed to be unreasonably impaired by any rule of an [exchange](/usc/15/78c.md?p=a-1) fairly and reasonably prescribing the sequence in which orders brought to the [exchange](/usc/15/78c.md?p=a-1) must be executed or which has been adopted to effect compliance with a rule of the [Commission](/usc/15/78c.md?p=a-15) promulgated under this chapter.
  - (4) The [Commission](/usc/15/78c.md?p=a-15) is directed to review any and all rules of national [securities](/usc/15/78c.md?p=a-10) [exchanges](/usc/15/78c.md?p=a-1) which limit or condition the ability of [members](/usc/15/78c.md?p=a-3-A) to effect transactions in [securities](/usc/15/78c.md?p=a-10) otherwise than on such [exchanges](/usc/15/78c.md?p=a-1).
  - (5) No national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1) or registered [securities](/usc/15/78c.md?p=a-10) association may limit or condition the participation of any [member](/usc/15/78c.md?p=a-3-A) in any registered [clearing agency](/usc/15/78c.md?p=a-23-A).
  - (6) **Tick size.—**
    - (A) **Study and report.—** The [Commission](/usc/15/78c.md?p=a-15) shall conduct a study examining the transition to trading and quoting [securities](/usc/15/78c.md?p=a-10) in one penny increments, also known as decimalization. The study shall examine the impact that decimalization has had on the number of initial public offerings since its implementation relative to the period before its implementation. The study shall also examine the impact that this change has had on liquidity for small and middle capitalization [company](/usc/15/78c.md?p=a-19) [securities](/usc/15/78c.md?p=a-10) and whether there is sufficient economic incentive to support trading operations in these [securities](/usc/15/78c.md?p=a-10) in penny increments. Not later than 90 days after April 5, 2012, the [Commission](/usc/15/78c.md?p=a-15) shall submit to Congress a report on the findings of the study.
    - (B) **Designation.—** If the [Commission](/usc/15/78c.md?p=a-15) determines that the [securities](/usc/15/78c.md?p=a-10) of [emerging growth companies](/usc/15/78c.md?p=a-80) should be quoted and traded using a minimum increment of greater than $0.01, the [Commission](/usc/15/78c.md?p=a-15) may, by rule not later than 180 days after April 5, 2012, designate a minimum increment for the [securities](/usc/15/78c.md?p=a-10) of [emerging growth companies](/usc/15/78c.md?p=a-80) that is greater than $0.01 but less than $0.10 for use in all quoting and trading of [securities](/usc/15/78c.md?p=a-10) in any [exchange](/usc/15/78c.md?p=a-1) or other execution venue.
- (d) **National Market Advisory Board—**
  - (1) Not later than one hundred eighty days after June 4, 1975, the [Commission](/usc/15/78c.md?p=a-15) shall establish a National Market Advisory [Board](/usc/15/78c.md?p=a-73) (hereinafter in this section referred to as the “Advisory [Board](/usc/15/78c.md?p=a-73)”) to be composed of fifteen [members](/usc/15/78c.md?p=a-3-A), not all of whom shall be from the same geographical area of the United States, appointed by the [Commission](/usc/15/78c.md?p=a-15) for a term specified by the [Commission](/usc/15/78c.md?p=a-15) of not less than two years or more than five years. The Advisory [Board](/usc/15/78c.md?p=a-73) shall consist of [persons](/usc/15/78c.md?p=a-9) associated with [brokers](/usc/15/78c.md?p=a-4-A) and [dealers](/usc/15/78c.md?p=a-5-A) (who shall be a majority) and [persons](/usc/15/78c.md?p=a-9) not so associated who are representative of the public and, to the extent feasible, have knowledge of the [securities](/usc/15/78c.md?p=a-10) markets of the United States.
  - (2) It shall be the responsibility of the Advisory [Board](/usc/15/78c.md?p=a-73) to formulate and furnish to the [Commission](/usc/15/78c.md?p=a-15) its views on significant regulatory proposals made by the [Commission](/usc/15/78c.md?p=a-15) or any [self-regulatory organization](/usc/15/78c.md?p=a-26) concerning the establishment, operation, and regulation of the markets for [securities](/usc/15/78c.md?p=a-10) in the United States.
  - (3)
    - (A) The Advisory [Board](/usc/15/78c.md?p=a-73) shall study and make recommendations to the [Commission](/usc/15/78c.md?p=a-15) as to the steps it finds appropriate to facilitate the establishment of a national market system. In so doing, the Advisory [Board](/usc/15/78c.md?p=a-73) shall assume the responsibilities of any advisory committee appointed to advise the [Commission](/usc/15/78c.md?p=a-15) with respect to the national market system which is in existence at the time of the establishment of the Advisory [Board](/usc/15/78c.md?p=a-73).
    - (B) The Advisory [Board](/usc/15/78c.md?p=a-73) shall study the possible need for modifications of the scheme of self-regulation provided for in this chapter so as to adapt it to a national market system, including the need for the establishment of a new [self-regulatory organization](/usc/15/78c.md?p=a-26) (hereinafter in this section referred to as a “National Market Regulatory [Board](/usc/15/78c.md?p=a-73)” or “Regulatory [Board](/usc/15/78c.md?p=a-73)”) to administer the national market system. In the event the Advisory [Board](/usc/15/78c.md?p=a-73) determines a National Market Regulatory [Board](/usc/15/78c.md?p=a-73) should be established, it shall make recommendations as to:
      - (i) the point in time at which a Regulatory [Board](/usc/15/78c.md?p=a-73) should be established;
      - (ii) the composition of a Regulatory [Board](/usc/15/78c.md?p=a-73);
      - (iii) the scope of the authority of a Regulatory [Board](/usc/15/78c.md?p=a-73);
      - (iv) the relationship of a Regulatory [Board](/usc/15/78c.md?p=a-73) to the [Commission](/usc/15/78c.md?p=a-15) and to existing [self-regulatory organizations](/usc/15/78c.md?p=a-26); and
      - (v) the manner in which a Regulatory [Board](/usc/15/78c.md?p=a-73) should be funded.

      The Advisory [Board](/usc/15/78c.md?p=a-73) shall report to the Congress, on or before December 31, 1976, the results of such study and its recommendations, including such recommendations for legislation as it deems appropriate.

    - (C) In carrying out its responsibilities under this paragraph, the Advisory [Board](/usc/15/78c.md?p=a-73) shall consult with [self-regulatory organizations](/usc/15/78c.md?p=a-26), [brokers](/usc/15/78c.md?p=a-4-A), [dealers](/usc/15/78c.md?p=a-5-A), [securities information processors](/usc/15/78c.md?p=a-22-A), [issuers](/usc/15/78c.md?p=a-8), investors, representatives of Government agencies, and other [persons](/usc/15/78c.md?p=a-9) interested or likely to participate in the establishment, operation, or regulation of the national market system.
- (e) **National markets system for security futures products—**
  - (1) **Consultation and cooperation required—** With respect to [security futures products](/usc/15/78c.md?p=a-56), the [Commission](/usc/15/78c.md?p=a-15) and the Commodity Futures Trading [Commission](/usc/15/78c.md?p=a-15) shall consult and cooperate so that, to the maximum extent practicable, their respective regulatory responsibilities may be fulfilled and the rules and regulations applicable to [security futures products](/usc/15/78c.md?p=a-56) may foster a national market system for [security futures products](/usc/15/78c.md?p=a-56) if the [Commission](/usc/15/78c.md?p=a-15) and the Commodity Futures Trading [Commission](/usc/15/78c.md?p=a-15) jointly determine that such a system would be consistent with the congressional findings in [subsection (a)(1)](#a-1). In accordance with this objective, the [Commission](/usc/15/78c.md?p=a-15) shall, at least 15 days prior to the issuance for public comment of any proposed rule or regulation under this section concerning [security futures products](/usc/15/78c.md?p=a-56), consult and request the views of the Commodity Futures Trading [Commission](/usc/15/78c.md?p=a-15).
  - (2) **Application of rules by order of CFTC—** No rule adopted pursuant to this section shall be applied to any [person](/usc/15/78c.md?p=a-9) with respect to the trading of [security futures products](/usc/15/78c.md?p=a-56) on an [exchange](/usc/15/78c.md?p=a-1) that is registered under [section 78f(g) of this title](/usc/15/78f.md?p=g) unless the Commodity Futures Trading [Commission](/usc/15/78c.md?p=a-15) has issued an order directing that such rule is applicable to such [persons](/usc/15/78c.md?p=a-9).

## Footnotes

[^1]: So in original. Probably should be “are hereinafter”.
[^2]: So in original. The comma probably should not appear.

## Source credit

(June 6, 1934, ch. 404, title I, § 11A, as added Pub. L. 94–29, § 7, June 4, 1975, 89 Stat. 111; amended Pub. L. 98–620, title IV, § 402(14), Nov. 8, 1984, 98 Stat. 3358; Pub. L. 100–181, title III, §§ 313, 314, Dec. 4, 1987, 101 Stat. 1256; Pub. L. 106–554, § 1(a)(5) [title II, § 206(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–430; Pub. L. 112–106, title I, § 106(b), Apr. 5, 2012, 126 Stat. 312; Pub. L. 117–286, § 4(a)(62), Dec. 27, 2022, 136 Stat. 4312.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in text, was in the original “this title”. See References in Text note set out under section 78a of this title.

### Amendments

2022—Subsec. (a)(3)(A). Pub. L. 117–286 substituted “chapter 10 of title 5 (which shall be in addition to the National Market Advisory Board established pursuant to subsection (d) of this section),” for “the Federal Advisory Committee Act (which shall be in addition to the National Market Advisory Board established pursuant to subsection (d) of this section)”.

2012—Subsec. (c)(6). Pub. L. 112–106 added par. (6).

2000—Subsec. (e). Pub. L. 106–554 added subsec. (e).

1987—Subsec. (b)(2). Pub. L. 100–181, § 313(1), substituted “transactions” for “transaction”.

Subsec. (c)(4). Pub. L. 100–181, § 313(2), struck out “On or before the ninetieth day following June 4, 1975, the Commission shall (i) report to the Congress the results of its review, including the effects on competition of such rules, and (ii) commence a proceeding in accordance with the provisions of section 78s(c) of this title to amend any such rule imposing a burden on competition which does not appear to the Commission to be necessary or appropriate in furtherance of the purposes of this chapter. The Commission shall conclude any such proceeding within ninety days of the date of publication of notice of its commencement.”

Subsec. (e). Pub. L. 100–181, § 314, struck out subsec. (e) which read as follows: “The Commission is authorized and directed to make a study of the extent to which persons excluded from the definitions of ‘broker’ and ‘dealer’ maintain accounts on behalf of public customers for buying and selling securities registered under section 78l of this title and whether such exclusions are consistent with the protection of investors and the other purposes of this chapter. The Commission shall report to the Congress, on or before December 31, 1976, the results of its study together with such recommendations for legislation as it deems advisable.”

1984—Subsec. (c)(4). Pub. L. 98–620 struck out designation “(A)” after “(4)”, and struck out subpar. (B) which provided that review pursuant to section 78y(b) of this title of any rule promulgated by the Commission in accordance with any proceeding commenced pursuant to this paragraph would, except as to causes the court considers of greater importance, take precedence on the docket over all other causes and had to be assigned for consideration at the earliest practicable date and expedited in every way.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1984 Amendment

Amendment by Pub. L. 98–620 not applicable to cases pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620, set out as an Effective Date note under section 1657 of Title 28, Judiciary and Judicial Procedure.

### Effective Date

Section effective June 4, 1975, except for subsec. (b) which is 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.

### Termination of Advisory Committees

Advisory committees established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided for by law. See section 1013 of Title 5, Government Organization and Employees.