---
kind: "section"
citation: "15 U.S.C. § 78o–5"
title: "15"
title_heading: "Commerce and Trade"
number: "78o–5"
heading: "Government securities brokers and dealers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/78o-5"
units:
  - "Chapter 2B — Securities Exchanges"
---

# §78o–5. Government securities brokers and dealers

- (a) **Registration requirements; notice to regulatory agencies; manner of registration; exemption from registration requirements—**
  - (1)
    - (A) It shall be unlawful for any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) (other than a [registered broker or dealer](/usc/15/78c.md?p=a-48) or a [financial institution](/usc/15/78c.md?p=a-46)) to make use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) 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 government [security](/usc/15/78c.md?p=a-10) unless such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) is registered in accordance with paragraph (2) of this subsection.
    - (B)
      - (i) It shall be unlawful for any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) that is a [registered broker or dealer](/usc/15/78c.md?p=a-48) or a [financial institution](/usc/15/78c.md?p=a-46) to make use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) 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 government [security](/usc/15/78c.md?p=a-10) unless such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) has filed with the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) written notice that it is a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44). When such a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) ceases to act as such it shall file with the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) a written notice that it is no longer acting as a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44).
      - (ii) Such notices shall be in such form and contain such information concerning a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) that is a [financial institution](/usc/15/78c.md?p=a-46) and any [persons](/usc/15/78c.md?p=a-9) associated with such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) as the [Board](/usc/15/78c.md?p=a-73) of Governors of the Federal Reserve System shall, by rule, after consultation with each [appropriate regulatory agency](/usc/15/78c.md?p=a-34) (including the [Commission](/usc/15/78c.md?p=a-15)), prescribe as necessary or appropriate in the public interest or for the protection of investors. Such notices shall be in such form and contain such information concerning a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) that is a [registered broker or dealer](/usc/15/78c.md?p=a-48) and any [persons](/usc/15/78c.md?p=a-9) associated with such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) as the [Commission](/usc/15/78c.md?p=a-15) shall, by rule, prescribe as necessary or appropriate in the public interest or for the protection of investors.
      - (iii) Each [appropriate regulatory agency](/usc/15/78c.md?p=a-34) (other than the [Commission](/usc/15/78c.md?p=a-15)) shall make available to the [Commission](/usc/15/78c.md?p=a-15) the notices which have been filed with it under this subparagraph, and the [Commission](/usc/15/78c.md?p=a-15) shall maintain and make available to the public such notices and the notices it receives under this subparagraph.
  - (2) A [government securities broker](/usc/15/78c.md?p=a-43) or a [government securities dealer](/usc/15/78c.md?p=a-44) subject to the registration requirement of paragraph (1)(A) of this subsection may be registered by filing with the [Commission](/usc/15/78c.md?p=a-15) an application for registration in such form and containing such information and documents concerning such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) and any [persons](/usc/15/78c.md?p=a-9) associated with such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) 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. Within 45 days of the date of filing of such application (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 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 120 days of the date 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 90 days if it finds good cause for such extension and publishes its reasons for so finding or for 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 grant the registration of a [government securities broker](/usc/15/78c.md?p=a-43) or a [government securities dealer](/usc/15/78c.md?p=a-44) if the [Commission](/usc/15/78c.md?p=a-15) finds that the requirements of this section are satisfied. The order granting registration shall not be effective until such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) has become a [member](/usc/15/78c.md?p=a-3-A) of a national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1) registered under [section 78f of this title](/usc/15/78f.md), or a [securities](/usc/15/78c.md?p=a-10) association registered under [section 78o–3](/usc/15/78o–3.md) of this title, unless the [Commission](/usc/15/78c.md?p=a-15) has exempted such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), by rule or order, from such membership. The [Commission](/usc/15/78c.md?p=a-15) shall deny such registration if it does not make such a finding or if it finds that if the [applicant](/usc/15/7a.md?p=3) were so registered, its registration would be subject to suspension or revocation under [subsection (c)](#c) of this section.

  - (3) Any provision of this chapter (other than [section 78e of this title](/usc/15/78e.md) or paragraph (1) of this subsection) which prohibits any act, practice, or course of business if the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) is used in connection therewith shall also prohibit any such act, practice, or course of business by any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) registered or having filed notice under paragraph (1) of this subsection or any [person](/usc/15/78c.md?p=a-9) acting on behalf of such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), irrespective of any use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) in connection therewith.
  - (4) No [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) that is required to register under [paragraph (1)(A)](#a-1-A) and that is not a [member](/usc/15/78c.md?p=a-3-A) of the [Securities](/usc/15/78c.md?p=a-10) Investor Protection Corporation shall effect any transaction in any [security](/usc/15/78c.md?p=a-10) in contravention of such rules as the [Commission](/usc/15/78c.md?p=a-15) shall prescribe pursuant to this subsection to assure that its customers receive complete, accurate, and timely disclosure of the inapplicability of [Securities](/usc/15/78c.md?p=a-10) Investor Protection Corporation coverage to their accounts.
  - (5) The Secretary of the Treasury (hereinafter in this section referred to as the “Secretary”), by rule or order, upon the Secretary’s own motion or upon application, may conditionally or unconditionally exempt any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), or class of [government securities brokers](/usc/15/78c.md?p=a-43) or [government securities dealers](/usc/15/78c.md?p=a-44), from any provision of subsection [(a)](#a), [(b)](#b), or [(d)](#d) of this section, other than [subsection (d)(3)](#d-3), or the rules thereunder, if the Secretary finds that such exemption is consistent with the public interest, the protection of investors, and the purposes of this chapter.
- (b) **Rules with respect to transactions in government securities—**
  - (1) The Secretary shall propose and adopt rules to effect the purposes of this chapter with respect to transactions in [government securities](/usc/15/78c.md?p=a-42) effected by [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44) as follows:
    - (A) Such rules shall provide safeguards with respect to the financial responsibility and related practices of [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44) including, but not limited to, capital adequacy standards, the acceptance of custody and use of customers’ [securities](/usc/15/78c.md?p=a-10), the carrying and use of customers’ deposits or credit balances, and the transfer and control of [government securities](/usc/15/78c.md?p=a-42) subject to repurchase [agreements](/usc/15/7a.md?p=2) and in similar transactions.
    - (B) Such rules shall require every [government securities broker](/usc/15/78c.md?p=a-43) and [government securities dealer](/usc/15/78c.md?p=a-44) to make reports to and furnish copies of [records](/usc/15/78c.md?p=a-37) to the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), and to file with the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), annually or more frequently, a balance sheet and income statement certified by an independent public accountant, prepared on a calendar or fiscal year basis, and such other financial statements (which shall, as the Secretary specifies, be certified) and information concerning its financial condition as required by such rules.
    - (C) Such rules shall require [records](/usc/15/78c.md?p=a-37) to be made and kept by [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44) and shall specify the periods for which such [records](/usc/15/78c.md?p=a-37) shall be preserved.
  - (2) **Risk Assessment for Holding Company Systems.—**
    - (A) **Obligations to obtain, maintain, and report information.—** Every [person](/usc/15/78c.md?p=a-9) who is registered as a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) under this section shall obtain such information and make and keep such [records](/usc/15/78c.md?p=a-37) as the Secretary by rule prescribes concerning the registered [person](/usc/15/78c.md?p=a-9)’s policies, procedures, or systems for monitoring and controlling financial and operational risks to it resulting from the activities of any of its associated [persons](/usc/15/78c.md?p=a-9), other than a natural [person](/usc/15/78c.md?p=a-9). Such [records](/usc/15/78c.md?p=a-37) shall describe, in the aggregate, each of the financial and [securities](/usc/15/78c.md?p=a-10) activities conducted by, and customary sources of capital and funding of, those of its associated [persons](/usc/15/78c.md?p=a-9) whose business activities are reasonably likely to have a material impact on the financial or operational condition of such registered [person](/usc/15/78c.md?p=a-9), including its capital, its liquidity, or its ability to conduct or finance its operations. The Secretary, by rule, may require summary reports of such information to be filed with the registered [person](/usc/15/78c.md?p=a-9)’s [appropriate regulatory agency](/usc/15/78c.md?p=a-34) no more frequently than quarterly.
    - (B) **Authority to require additional information.—** If, as a result of adverse market conditions or based on reports provided pursuant to subparagraph (A) of this paragraph or other available information, the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) reasonably concludes that it has concerns regarding the financial or operational condition of any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) registered under this section, such agency may require the registered [person](/usc/15/78c.md?p=a-9) to make reports concerning the financial and [securities](/usc/15/78c.md?p=a-10) activities of any of such [person](/usc/15/78c.md?p=a-9)’s associated [persons](/usc/15/78c.md?p=a-9), other than a natural [person](/usc/15/78c.md?p=a-9), whose business activities are reasonably likely to have a material impact on the financial or operational condition of such registered [person](/usc/15/78c.md?p=a-9). The [appropriate regulatory agency](/usc/15/78c.md?p=a-34), in requiring reports pursuant to this subparagraph, shall specify the information required, the period for which it is required, the time and date on which the information must be furnished, and whether the information is to be furnished directly to the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) or to a [self-regulatory organization](/usc/15/78c.md?p=a-26) with primary responsibility for examining the registered [person](/usc/15/78c.md?p=a-9)’s financial and operational condition.
    - (C) **Special provisions with respect to associated persons subject to federal banking agency regulation.—**
      - (i) **Cooperation in implementation.—** In developing and implementing reporting requirements pursuant to subparagraph (A) of this paragraph with respect to associated [persons](/usc/15/78c.md?p=a-9) subject to examination by or reporting requirements of a Federal banking agency, the Secretary shall consult with and consider the views of each such Federal banking agency. If a Federal banking agency comments in writing on a proposed rule of the Secretary under this paragraph that has been published for comment, the Secretary shall respond in writing to such written comment before adopting the proposed rule. The Secretary shall, at the request of a Federal banking agency, publish such comment and response in the Federal Register at the time of publishing the adopted rule.
      - (ii) **Use of banking agency reports.—** A registered [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) shall be in compliance with any recordkeeping or reporting requirement adopted pursuant to subparagraph (A) of this paragraph concerning an associated [person](/usc/15/78c.md?p=a-9) that is subject to examination by or reporting requirements of a Federal banking agency if such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) utilizes for such recordkeeping or reporting requirement copies of reports filed by the associated [person](/usc/15/78c.md?p=a-9) with the Federal banking agency pursuant to [section 161 of title 12](/usc/12/161.md), subchapter VIII of [chapter 3](/usc/12/chch3.md) of title 12, [section 1817(a) of title 12](/usc/12/1817.md?p=a), [section 1467a(b) of title 12](/usc/12/1467a.md?p=b), or [section 1847 of title 12](/usc/12/1847.md). The Secretary may, however, by rule adopted pursuant to [subparagraph (A)](#b-2-A), require any registered [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) filing such reports with the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) to obtain, maintain, or report supplemental information if the Secretary makes an explicit finding, based on information provided by the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), that such supplemental information is necessary to inform the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) regarding potential risks to such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44). Prior to requiring any such supplemental information, the Secretary shall first request the Federal banking agency to expand its reporting requirements to include such information.
      - (iii) **Procedure for requiring additional information.—** Prior to making a request pursuant to subparagraph (B) of this paragraph for information with respect to an associated [person](/usc/15/78c.md?p=a-9) that is subject to examination by or reporting requirements of a Federal banking agency, the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall—
        - (I) notify such banking agency of the information required with respect to such associated [person](/usc/15/78c.md?p=a-9); and
        - (II) consult with such agency to determine whether the information required is available from such agency and for other purposes, unless the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) determines that any delay resulting from such consultation would be inconsistent with ensuring the financial and operational condition of the [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) or the stability or integrity of the [securities](/usc/15/78c.md?p=a-10) markets.
      - (iv) **Exclusion for examination reports.—** Nothing in this subparagraph shall be construed to permit the Secretary or an [appropriate regulatory agency](/usc/15/78c.md?p=a-34) to require any registered [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) to obtain, maintain, or furnish any examination report of any Federal banking agency or any supervisory recommendations or analysis contained therein.
      - (v) **Confidentiality of information provided.—** No information provided to or obtained by an [appropriate regulatory agency](/usc/15/78c.md?p=a-34) from any Federal banking agency pursuant to a request under clause (iii) of this subparagraph regarding any associated [person](/usc/15/78c.md?p=a-9) which is subject to examination by or reporting requirements of a Federal banking agency may be disclosed to any other [person](/usc/15/78c.md?p=a-9) (other than a [self-regulatory organization](/usc/15/78c.md?p=a-26)), without the prior written approval of the Federal banking agency. Nothing in this clause shall authorize the Secretary or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) to withhold information from Congress, or prevent the Secretary or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) from complying with a request for information from any other Federal department or agency requesting the information for purposes within the scope of its jurisdiction, or complying with an order of a court of the United States in an action brought by the United States or the [Commission](/usc/15/78c.md?p=a-15).
      - (vi) **Notice to banking agencies concerning financial and operational condition concerns.—** The Secretary or [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall notify the Federal banking agency of any concerns of the Secretary or the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) regarding significant financial or operational risks resulting from the activities of any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) to any associated [person](/usc/15/78c.md?p=a-9) thereof which is subject to examination by or reporting requirements of the Federal banking agency.
      - (vii) **Definition.—** For purposes of this subparagraph, the term “Federal banking agency” shall have the same meaning as the term “[appropriate Federal banking agency](/usc/15/78c.md?p=a-72)” in [section 1813(q) of title 12](/usc/12/1813.md?p=q).
    - (D) **Exemptions.—** The Secretary by rule or order may exempt any [person](/usc/15/78c.md?p=a-9) or class of [persons](/usc/15/78c.md?p=a-9), under such terms and conditions and for such periods as the Secretary shall provide in such rule or order, from the provisions of this paragraph, and the rules thereunder. In granting such exemptions, the Secretary shall consider, among other factors—
      - (i) whether information of the type required under this paragraph is available from a supervisory agency (as defined in section 3401(6)[^1] of title 12), a [State](/usc/15/78c.md?p=a-16) insurance [commission](/usc/15/78c.md?p=a-15) or similar [State](/usc/15/78c.md?p=a-16) agency, the Commodity Futures Trading [Commission](/usc/15/78c.md?p=a-15), or a similar foreign regulator;
      - (ii) the primary business of any associated [person](/usc/15/78c.md?p=a-9);
      - (iii) the nature and extent of domestic or foreign regulation of the associated [person](/usc/15/78c.md?p=a-9)’s activities;
      - (iv) the nature and extent of the registered [person](/usc/15/78c.md?p=a-9)’s [securities](/usc/15/78c.md?p=a-10) transactions; and
      - (v) with respect to the registered [person](/usc/15/78c.md?p=a-9) and its associated [persons](/usc/15/78c.md?p=a-9), on a consolidated basis, the amount and proportion of assets devoted to, and revenues derived from, activities in the United States [securities](/usc/15/78c.md?p=a-10) markets.
    - (E) **Conformity with requirements under section 78q(h).—** In exercising authority pursuant to subparagraph (A) of this paragraph concerning information with respect to associated [persons](/usc/15/78c.md?p=a-9) of [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44) who are also associated [persons](/usc/15/78c.md?p=a-9) of registered [brokers](/usc/15/78c.md?p=a-4-A) or [dealers](/usc/15/78c.md?p=a-5-A) reporting to the [Commission](/usc/15/78c.md?p=a-15) pursuant to [section 78q(h) of this title](/usc/15/78q.md?p=h), the requirements relating to such associated [persons](/usc/15/78c.md?p=a-9) shall conform, to the greatest extent practicable, to the requirements under [section 78q(h) of this title](/usc/15/78q.md?p=h).
    - (F) **Authority to limit disclosure of information.—** Notwithstanding any other provision of law, the Secretary and any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall not be compelled to disclose any information required to be reported under this paragraph, or any information supplied to the Secretary or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) by any domestic or foreign regulatory agency that relates to the financial or operational condition of any associated [person](/usc/15/78c.md?p=a-9) of a registered [government securities broker](/usc/15/78c.md?p=a-43) or a [government securities dealer](/usc/15/78c.md?p=a-44). Nothing in this paragraph shall authorize the Secretary or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) to withhold information from Congress, or prevent the Secretary or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) from complying with a request for information from any other Federal department or agency requesting the information for purposes within the scope of its jurisdiction, or complying with an order of a court of the United States in an action brought by the United States or the [Commission](/usc/15/78c.md?p=a-15). For purposes of [section 552 of title 5](/usc/5/552.md), this paragraph shall be considered a statute described in [subsection (b)(3)(B)](/usc/5/552.md?p=b-3-B) of such section 552.
  - (3)
    - (A) With respect to any [financial institution](/usc/15/78c.md?p=a-46) that has filed notice as a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) or that is required to file notice under [subsection (a)(1)(B)](#a-1-B), the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) for such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) may issue such rules and regulations with respect to transactions in [government securities](/usc/15/78c.md?p=a-42) as may be necessary to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade. If the Secretary of the Treasury determines, and notifies the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), that such rule or regulation, if implemented, would, or as applied does (i) adversely affect the liquidity or efficiency of the market for [government securities](/usc/15/78c.md?p=a-42); or (ii) impose any burden on competition not necessary or appropriate in furtherance of the purposes of this section, the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall, prior to adopting the proposed rule or regulation, find that such rule or regulation is necessary and appropriate in furtherance of the purposes of this section notwithstanding the Secretary’s determination.
    - (B) The [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall consult with and consider the views of the Secretary prior to approving or amending a rule or regulation under this paragraph, except where the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) determines that an emergency exists requiring expeditious and summary action and publishes its reasons therefor. If the Secretary comments in writing to the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) on a proposed rule or regulation that has been published for comment, the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall respond in writing to such written comment before approving the proposed rule or regulation.
    - (C) In promulgating rules under this section, the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) shall consider the sufficiency and appropriateness of then existing laws and rules applicable to [government securities brokers](/usc/15/78c.md?p=a-43), [government securities dealers](/usc/15/78c.md?p=a-44), and [persons](/usc/15/78c.md?p=a-9) associated with [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44).
  - (4) Rules promulgated and orders issued under this section shall—
    - (A) be designed to prevent fraudulent and manipulative acts and practices and to protect the integrity, liquidity, and efficiency of the market for [government securities](/usc/15/78c.md?p=a-42), investors, and the public interest; and
    - (B) not be designed to permit unfair discrimination between customers, [issuers](/usc/15/78c.md?p=a-8), [government securities brokers](/usc/15/78c.md?p=a-43), or [government securities dealers](/usc/15/78c.md?p=a-44), or to impose any burden on competition not necessary or appropriate in furtherance of the purposes of this chapter.
  - (5) In promulgating rules and issuing orders under this section, the Secretary—
    - (A) may appropriately classify [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44) (taking into account relevant matters, including types of business done, nature of [securities](/usc/15/78c.md?p=a-10) other than [government securities](/usc/15/78c.md?p=a-42) purchased or sold, and character of business organization) and [persons](/usc/15/78c.md?p=a-9) associated with [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44);
    - (B) may determine, to the extent consistent with paragraph (2) of this subsection and with the public interest, the protection of investors, and the purposes of this chapter, not to apply, in whole or in part, certain rules under this section, or to apply greater, lesser, or different standards, to certain classes of [government securities brokers](/usc/15/78c.md?p=a-43), [government securities dealers](/usc/15/78c.md?p=a-44), or [persons](/usc/15/78c.md?p=a-9) associated with [government securities brokers](/usc/15/78c.md?p=a-43) or [government securities dealers](/usc/15/78c.md?p=a-44);
    - (C) shall consider the sufficiency and appropriateness of then existing laws and rules applicable to [government securities brokers](/usc/15/78c.md?p=a-43), [government securities dealers](/usc/15/78c.md?p=a-44), and [persons](/usc/15/78c.md?p=a-9) associated with [government securities brokers](/usc/15/78c.md?p=a-43) and [government securities dealers](/usc/15/78c.md?p=a-44); and
    - (D) shall consult with and consider the views of the [Commission](/usc/15/78c.md?p=a-15) and the [Board](/usc/15/78c.md?p=a-73) of Governors of the Federal Reserve System, except where the Secretary determines that an emergency exists requiring expeditious or summary action and publishes its reasons for such determination.
  - (6) If the [Commission](/usc/15/78c.md?p=a-15) or the [Board](/usc/15/78c.md?p=a-73) of Governors of the Federal Reserve System comments in writing on a proposed rule of the Secretary that has been published for comment, the Secretary shall respond in writing to such written comment before approving the proposed rule.
  - (7) No [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) shall make use of the mails or any means or instrumentality of [interstate commerce](/usc/15/78c.md?p=a-17) 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 government [security](/usc/15/78c.md?p=a-10) in contravention of any rule under this section.
- (c) **Sanctions for violations—**
  - (1) With respect to any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) registered or required to register under [subsection (a)(1)(A)](#a-1-A) of this section—
    - (A) The [Commission](/usc/15/78c.md?p=a-15), by order, shall censure, place limitations on the activities, functions, or operations of, suspend for a period not exceeding 12 months, or revoke the registration of such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), if it finds, on the record after notice and opportunity for hearing, that such censure, placing of limitations, suspension, or revocation is in the public interest and that such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), or any [person associated with](/usc/15/78c.md?p=a-63) such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) (whether prior or subsequent to becoming so associated), has committed or omitted any act, or is subject to an order or finding, enumerated in subparagraph (A), (D), (E), (H), or (G) of paragraph (4) of [section 78o(b)](/usc/15/78o.md?p=b) of this title, has been convicted of any offense specified in [subparagraph (B)](#c-1-B) of such paragraph (4) within 10 years of the commencement of the proceedings under this paragraph, or is enjoined from any action, conduct, or practice specified in [subparagraph (C)](#c-1-C) of such paragraph (4).
    - (B) Pending [final determination](/usc/15/37a.md?p=4) whether registration of any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) shall be revoked, the [Commission](/usc/15/78c.md?p=a-15), by order, may suspend such registration, if such suspension appears to the [Commission](/usc/15/78c.md?p=a-15), after notice and opportunity for hearing, to be necessary or appropriate in the public interest or for the protection of investors. Any registered [government securities broker](/usc/15/78c.md?p=a-43) or registered [government securities dealer](/usc/15/78c.md?p=a-44) may, upon such terms and conditions as the [Commission](/usc/15/78c.md?p=a-15) may deem necessary 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 [government securities broker](/usc/15/78c.md?p=a-43) or registered [government securities dealer](/usc/15/78c.md?p=a-44) is no longer in existence or has ceased to do business as a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), the [Commission](/usc/15/78c.md?p=a-15), by order, shall cancel the registration of such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44).
    - (C) The [Commission](/usc/15/78c.md?p=a-15), by order, shall censure or place limitations on the activities or functions of any [person](/usc/15/78c.md?p=a-9) who is, or at the time of the alleged misconduct was, associated or seeking to become associated with a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) registered or required to register under [subsection (a)(1)(A)](#a-1-A) of this section or suspend for a period not exceeding 12 months or bar any such [person](/usc/15/78c.md?p=a-9) from being associated with such a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), 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 bar is in the public interest and that such [person](/usc/15/78c.md?p=a-9) has committed or omitted any act, or is subject to an order or finding, enumerated in subparagraph (A), (D), (E), (H), or (G) of paragraph (4) of [section 78o(b)](/usc/15/78o.md?p=b) of this title, has been convicted of any offense specified in [subparagraph (B)](#c-1-B) of such paragraph (4) within 10 years of the commencement of the proceedings under this paragraph, or is enjoined from any action, conduct, or practice specified in [subparagraph (C)](#c-1-C) of such paragraph (4).
  - (2)
    - (A) With respect to any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) which is not registered or required to register under [subsection (a)(1)(A)](#a-1-A) of this section, the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) for such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) may, in the manner and for the reasons specified in paragraph (1)(A) of this subsection, censure, place limitations on the activities, functions, or operations of, suspend for a period not exceeding 12 months, or bar from acting as a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) any such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), and may sanction any [person](/usc/15/78c.md?p=a-9) associated, seeking to become associated, or, at the time of the alleged misconduct, associated or seeking to become associated with such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) in the manner and for the reasons specified in paragraph (1)(C) of this subsection.
    - (B) In addition, where applicable, such [appropriate regulatory agency](/usc/15/78c.md?p=a-34) may, in accordance with [section 1818 of title 12](/usc/12/1818.md), [section 1464 of title 12](/usc/12/1464.md), or section 1730[^1] of title 12, enforce compliance by such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) or any [person](/usc/15/78c.md?p=a-9) associated, seeking to become associated, or, at the time of the alleged misconduct, associated or seeking to become associated with such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) with the provisions of this section and the rules thereunder.
    - (C) For purposes of subparagraph (B) of this paragraph, any violation of any such provision shall constitute adequate basis for the issuance of any order under section 1818(b) or (c) of [title 12](/usc/12.md), section 1464(d)(2) or (d)(3)[^1] of title 12, or section 1730(e) or (f)[^1] of title 12, and the customers of any such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) shall be deemed, respectively, “depositors” as that term is used in [section 1818(c) of title 12](/usc/12/1818.md?p=c), “savings account holders” as that term is used in [section 1464(d)(3)](/usc/12/1464.md?p=d-3)[^1] of title 12, or “insured [members](/usc/15/78c.md?p=a-3-A)” as that term is used in section 1730(f)[^1] of title 12.
    - (D) Nothing in this paragraph shall be construed to affect in any way the powers of such [appropriate regulatory agency](/usc/15/78c.md?p=a-34) to proceed against such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) under any other provision of law.
    - (E) Each [appropriate regulatory agency](/usc/15/78c.md?p=a-34) (other than the [Commission](/usc/15/78c.md?p=a-15)) shall promptly notify the [Commission](/usc/15/78c.md?p=a-15) after it has imposed any sanction under this paragraph on a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), or a [person associated with a government securities broker or government securities dealer](/usc/15/78c.md?p=a-45), and the [Commission](/usc/15/78c.md?p=a-15) shall maintain, and make available to the public, a record of such sanctions and any sanctions imposed by it under this subsection.
  - (3) It shall be unlawful for any [person](/usc/15/78c.md?p=a-9) as to whom an order entered pursuant to paragraph (1) or (2) of this subsection suspending or barring him from being associated with a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) is in effect willfully to become, or to be, associated with a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) without the consent of the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), and it shall be unlawful for any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) to permit such a [person](/usc/15/78c.md?p=a-9) to become, or remain, a [person associated with](/usc/15/78c.md?p=a-63) it without the consent of the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), if such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) knew, or, in the exercise of reasonable care should have known, of such order.
- (d) **Records of brokers and dealers subject to examination—**
  - (1) All [records](/usc/15/78c.md?p=a-37) of a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) are subject at any time, or from time to time, to such reasonable periodic, special, or other examinations by representatives of the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) for such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) as such [appropriate regulatory agency](/usc/15/78c.md?p=a-34) deems necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of this chapter.
  - (2) Information received by an [appropriate regulatory agency](/usc/15/78c.md?p=a-34), the Secretary, or the [Commission](/usc/15/78c.md?p=a-15) from or with respect to any [government securities broker](/usc/15/78c.md?p=a-43), [government securities dealer](/usc/15/78c.md?p=a-44), any [person associated with a government securities broker or government securities dealer](/usc/15/78c.md?p=a-45), or any other [person](/usc/15/78c.md?p=a-9) subject to this section or rules promulgated thereunder, may be made available by the Secretary or the recipient agency to the [Commission](/usc/15/78c.md?p=a-15), the Secretary, the Department of Justice, the Commodity Futures Trading [Commission](/usc/15/78c.md?p=a-15), any [appropriate regulatory agency](/usc/15/78c.md?p=a-34), any [self-regulatory organization](/usc/15/78c.md?p=a-26), or any Federal Reserve [Bank](/usc/15/78c.md?p=a-6).
  - (3) **Government Securities Trade Reconstruction.—**
    - (A) **Furnishing records.—** Every [government securities broker](/usc/15/78c.md?p=a-43) and [government securities dealer](/usc/15/78c.md?p=a-44) shall furnish to the [Commission](/usc/15/78c.md?p=a-15) on request such [records](/usc/15/78c.md?p=a-37) of [government securities](/usc/15/78c.md?p=a-42) transactions, including [records](/usc/15/78c.md?p=a-37) of the date and time of execution of trades, as the [Commission](/usc/15/78c.md?p=a-15) may require to reconstruct trading in the course of a particular inquiry or investigation being conducted by the [Commission](/usc/15/78c.md?p=a-15) for enforcement or surveillance purposes. In requiring information pursuant to this paragraph, the [Commission](/usc/15/78c.md?p=a-15) shall specify the information required, the period for which it is required, the time and date on which the information must be furnished, and whether the information is to be furnished directly to the [Commission](/usc/15/78c.md?p=a-15), to the Federal Reserve [Bank](/usc/15/78c.md?p=a-6) of New York, or to an [appropriate regulatory agency](/usc/15/78c.md?p=a-34) or [self-regulatory organization](/usc/15/78c.md?p=a-26) with responsibility for examining the [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44). The [Commission](/usc/15/78c.md?p=a-15) may require that such information be furnished in machine readable form notwithstanding any limitation in [subparagraph (B)](#d-3-B). In utilizing its authority to require information in machine readable form, the [Commission](/usc/15/78c.md?p=a-15) shall minimize the burden such requirement may place on small [government securities brokers](/usc/15/78c.md?p=a-43) and [dealers](/usc/15/78c.md?p=a-5-A).
    - (B) **Limitation; construction.—** The [Commission](/usc/15/78c.md?p=a-15) shall not utilize its authority under this paragraph to develop regular reporting requirements, except that the [Commission](/usc/15/78c.md?p=a-15) may require information to be furnished under this paragraph as frequently as necessary for particular inquiries or investigations for enforcement or surveillance purposes. This paragraph shall not be construed as requiring, or as authorizing the [Commission](/usc/15/78c.md?p=a-15) to require, any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) to obtain or maintain any information for purposes of this paragraph which is not otherwise maintained by such [broker or dealer](/usc/15/78c.md?p=h-2) in accordance with any other provision of law or usual and customary business practice. The [Commission](/usc/15/78c.md?p=a-15) shall, where feasible, avoid requiring any information to be furnished under this paragraph that the [Commission](/usc/15/78c.md?p=a-15) may obtain from the Federal Reserve [Bank](/usc/15/78c.md?p=a-6) of New York.
    - (C) **Procedures for requiring information.—** At the time the [Commission](/usc/15/78c.md?p=a-15) requests any information pursuant to [subparagraph (A)](#d-3-A) with respect to any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) for which the [Commission](/usc/15/78c.md?p=a-15) is not the [appropriate regulatory agency](/usc/15/78c.md?p=a-34), the [Commission](/usc/15/78c.md?p=a-15) shall notify the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) for such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) and, upon request, furnish to the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) any information supplied to the [Commission](/usc/15/78c.md?p=a-15).
    - (D) **Consultation.—** Within 90 days after December 17, 1993, and annually thereafter, or upon the request of any other [appropriate regulatory agency](/usc/15/78c.md?p=a-34), the [Commission](/usc/15/78c.md?p=a-15) shall consult with the other [appropriate regulatory agencies](/usc/15/78c.md?p=a-34) to determine the availability of [records](/usc/15/78c.md?p=a-37) that may be required to be furnished under this paragraph and, for those [records](/usc/15/78c.md?p=a-37) available directly from the other [appropriate regulatory agencies](/usc/15/78c.md?p=a-34), to develop a procedure for furnishing such [records](/usc/15/78c.md?p=a-37) expeditiously upon the [Commission](/usc/15/78c.md?p=a-15)’s request.
    - (E) **Exclusion for examination reports.—** Nothing in this paragraph shall be construed so as to permit the [Commission](/usc/15/78c.md?p=a-15) to require any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) to obtain, maintain, or furnish any examination report of any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) other than the [Commission](/usc/15/78c.md?p=a-15) or any supervisory recommendations or analysis contained in any such examination report.
    - (F) **Authority to limit disclosure of information.—** Notwithstanding any other provision of law, the [Commission](/usc/15/78c.md?p=a-15) and the [appropriate regulatory agencies](/usc/15/78c.md?p=a-34) shall not be compelled to disclose any information required or obtained under this paragraph. Nothing in this paragraph shall authorize the [Commission](/usc/15/78c.md?p=a-15) or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) to withhold information from Congress, or prevent the [Commission](/usc/15/78c.md?p=a-15) or any [appropriate regulatory agency](/usc/15/78c.md?p=a-34) from complying with a request for information from any other Federal department or agency requesting information for purposes within the scope of its jurisdiction, or from complying with an order of a court of the United States in an action brought by the United States, the [Commission](/usc/15/78c.md?p=a-15), or the [appropriate regulatory agency](/usc/15/78c.md?p=a-34). For purposes of [section 552 of title 5](/usc/5/552.md), this subparagraph shall be considered a statute described in [subsection (b)(3)(B)](/usc/5/552.md?p=b-3-B) of such section 552.
- (e) **Membership in national securities exchange; exemptions—**
  - (1) It shall be unlawful for any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) registered or required to register with the [Commission](/usc/15/78c.md?p=a-15) under [subsection (a)(1)(A)](#a-1-A) to effect any transaction in, or induce or attempt to induce the [purchase](/usc/15/78c.md?p=a-13) or sale of, any government [security](/usc/15/78c.md?p=a-10), unless such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) is a [member](/usc/15/78c.md?p=a-3-A) of a national [securities](/usc/15/78c.md?p=a-10) [exchange](/usc/15/78c.md?p=a-1) registered under [section 78f of this title](/usc/15/78f.md) or a [securities](/usc/15/78c.md?p=a-10) association registered under [section 78o–3](/usc/15/78o–3.md) of this title.
  - (2) The [Commission](/usc/15/78c.md?p=a-15), after consultation with the Secretary, by rule or order, as it deems consistent with the public interest and the protection of investors, may conditionally or unconditionally exempt from paragraph (1) of this subsection any [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44) or class of [government securities brokers](/usc/15/78c.md?p=a-43) or [government securities dealers](/usc/15/78c.md?p=a-44) specified in such rule or order.
- (f) **Large position reporting—**
  - (1) **Reporting requirements—** The Secretary may adopt rules to require specified [persons](/usc/15/78c.md?p=a-9) holding, maintaining, or controlling large positions in to-be-issued or recently issued Treasury [securities](/usc/15/78c.md?p=a-10) to file such reports regarding such positions as the Secretary determines to be necessary and appropriate for the purpose of monitoring the impact in the Treasury [securities](/usc/15/78c.md?p=a-10) market of concentrations of positions in Treasury [securities](/usc/15/78c.md?p=a-10) and for the purpose of otherwise assisting the [Commission](/usc/15/78c.md?p=a-15) in the enforcement of this chapter, taking into account any impact of such rules on the efficiency and liquidity of the Treasury [securities](/usc/15/78c.md?p=a-10) market and the cost to taxpayers of funding the Federal debt. Unless otherwise specified by the Secretary, reports required under this subsection shall be filed with the Federal Reserve [Bank](/usc/15/78c.md?p=a-6) of New York, acting as agent for the Secretary. Such reports shall, on a timely basis, be provided directly to the [Commission](/usc/15/78c.md?p=a-15) by the [person](/usc/15/78c.md?p=a-9) with whom they are filed.
  - (2) **Recordkeeping requirements—** Rules under this subsection may require [persons](/usc/15/78c.md?p=a-9) holding, maintaining, or controlling large positions in Treasury [securities](/usc/15/78c.md?p=a-10) to make and keep for prescribed periods such [records](/usc/15/78c.md?p=a-37) as the Secretary determines are necessary or appropriate to ensure that such [persons](/usc/15/78c.md?p=a-9) can comply with reporting requirements under this subsection.
  - (3) **Aggregation rules—** Rules under this subsection—
    - (A) may prescribe the manner in which positions and accounts shall be aggregated for the purpose of this subsection, including aggregation on the basis of common ownership or control; and
    - (B) may define which [persons](/usc/15/78c.md?p=a-9) (individually or as a group) hold, maintain, or control large positions.
  - (4) **Definitional authority; determination of reporting threshold—**
    - (A) In prescribing rules under this subsection, the Secretary may, consistent with the purpose of this subsection, define terms used in this subsection that are not otherwise defined in [section 78c of this title](/usc/15/78c.md).
    - (B) Rules under this subsection shall specify—
      - (i) the minimum size of positions subject to reporting under this subsection, which shall be no less than the size that provides the potential for manipulation or control of the supply or price, or the cost of financing arrangements, of an issue or the portion thereof that is available for trading;
      - (ii) the types of positions (which may include financing arrangements) to be reported;
      - (iii) the [securities](/usc/15/78c.md?p=a-10) to be covered; and
      - (iv) the form and manner in which reports shall be transmitted, which may include transmission in machine readable form.
  - (5) **Exemptions—** Consistent with the public interest and the protection of investors, the Secretary by rule or order may exempt in whole or in part, conditionally or unconditionally, any [person](/usc/15/78c.md?p=a-9) or class of [persons](/usc/15/78c.md?p=a-9), or any transaction or class of transactions, from the requirements of this subsection.
  - (6) **Limitation on disclosure of information—** Notwithstanding any other provision of law, the Secretary and the [Commission](/usc/15/78c.md?p=a-15) shall not be compelled to disclose any information required to be kept or reported under this subsection. Nothing in this subsection shall authorize the Secretary or the [Commission](/usc/15/78c.md?p=a-15) to withhold information from Congress, or prevent the Secretary or the [Commission](/usc/15/78c.md?p=a-15) from complying with a request for information from any other Federal department or agency requesting information for purposes within the scope of its jurisdiction, or from complying with an order of a court of the United States in an action brought by the United States, the Secretary, or the [Commission](/usc/15/78c.md?p=a-15). For purposes of [section 552 of title 5](/usc/5/552.md), this paragraph shall be considered a statute described in [subsection (b)(3)(B)](/usc/5/552.md?p=b-3-B) of such section 552.
- (g) **Effect on other laws; authority of Commission—**
  - (1) Nothing in this section except paragraph (2) of this subsection shall be construed to impair or limit the authority under any other provision of law of the [Commission](/usc/15/78c.md?p=a-15), the Secretary of the Treasury, the [Board](/usc/15/78c.md?p=a-73) of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Secretary of Housing and Urban Development, and the Government National Mortgage Association.
  - (2) Notwithstanding any other provision of this chapter, the [Commission](/usc/15/78c.md?p=a-15) shall not have any authority to make investigations of, require the filing of a statement by, or take any other action under this chapter against a [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44), or any [person associated with a government securities broker or government securities dealer](/usc/15/78c.md?p=a-45), for any violation or threatened violation of the provisions of this section, other than [subsection (d)(3)](#d-3)[^2] or the rules or regulations thereunder, unless the [Commission](/usc/15/78c.md?p=a-15) is the [appropriate regulatory agency](/usc/15/78c.md?p=a-34) for such [government securities broker](/usc/15/78c.md?p=a-43) or [government securities dealer](/usc/15/78c.md?p=a-44). Nothing in the preceding sentence shall be construed to limit the authority of the [Commission](/usc/15/78c.md?p=a-15) with respect to violations or threatened violations of any provision of this chapter other than this section (except [subsection (d)(3)](#d-3)), the rules or regulations under any such other provision, or investigations pursuant to [section 78u(a)(2) of this title](/usc/15/78u.md?p=a-2) to assist a [foreign securities authority](/usc/15/78c.md?p=a-50).
- (h) **Emergency authority—** The Secretary may, by order, take any action with respect to a matter or action subject to regulation by the Secretary under this section, or the rules of the Secretary under this section, involving a government [security](/usc/15/78c.md?p=a-10) or a market therein (or significant portion or segment of that market), that the [Commission](/usc/15/78c.md?p=a-15) may take under [section 78l(k)(2)](/usc/15/78l.md?p=k-2) of this title with respect to transactions in [securities](/usc/15/78c.md?p=a-10) (other than [exempted securities](/usc/15/78c.md?p=a-12-A)) or a market therein (or significant portion or segment of that market).

## Footnotes

[^1]: See References in Text note below.
[^2]: So in original. Probably should be followed by a comma.

## Source credit

(June 6, 1934, ch. 404, title I, § 15C, as added Pub. L. 99–571, title I, § 101, Oct. 28, 1986, 100 Stat. 3208; amended Pub. L. 100–181, title VIII, § 801(a), Dec. 4, 1987, 101 Stat. 1265; Pub. L. 101–73, title VII, § 744(u)(3), Aug. 9, 1989, 103 Stat. 441; Pub. L. 101–432, § 4(b), Oct. 16, 1990, 104 Stat. 970; Pub. L. 101–550, title II, § 203(c), Nov. 15, 1990, 104 Stat. 2718; Pub. L. 103–202, title I, §§ 102–104, 106(a), 108, 109(b)(1), (c), Dec. 17, 1993, 107 Stat. 2345, 2346, 2349, 2351–2353; Pub. L. 105–353, title III, § 301(b)(10), Nov. 3, 1998, 112 Stat. 3236; Pub. L. 107–204, title VI, § 604(c)(1)(B), July 30, 2002, 116 Stat. 796; Pub. L. 108–458, title VII, § 7803(d), Dec. 17, 2004, 118 Stat. 3863; Pub. L. 111–203, title III, § 376(3), title IX, §§ 929F(b), 985(b)(6), July 21, 2010, 124 Stat. 1569, 1854, 1934.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a)(3), (5), (b)(1), (2)(B), (4)(B), (d)(1), (f)(1), and (g)(2), was in the original “this title”. See References in Text note set out under section 78a of this title.

Subchapter VIII of chapter 3 of title 12, referred to in subsec. (b)(2)(C)(ii), was in the original “section 9 of the Federal Reserve Act”, meaning section 9 of act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified generally to subchapter VIII (§ 321 et seq.) of chapter 3 of Title 12, Banks and Banking.

Section 3401(6) of title 12, referred to in subsec. (b)(2)(D)(i), was redesignated section 3401(7) of title 12 by Pub. L. 101–73, title IX, § 941(1), Aug. 9, 1989, 103 Stat. 496.

Section 1730 of title 12, referred to in subsec. (c)(2)(B), (C), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

Section 1464(d)(2) and (d)(3) of title 12, referred to in subsec. (c)(2)(C), was amended generally by Pub. L. 101–73, title III, § 301, Aug. 9, 1989, 103 Stat. 282, and, as so amended, no longer relates to issuance of orders nor contains the term “savings account holders”.

### Amendments

2010—Subsec. (a)(2). Pub. L. 111–203, § 985(b)(6)(C), inserted after first sentence in concluding provisions: “The order granting registration shall not be effective until such government securities broker or government securities dealer has become a member of a national securities exchange registered under section 78f of this title, or a securities association registered under section 78o–3 of this title, unless the Commission has exempted such government securities broker or government securities dealer, by rule or order, from such membership.”

Pub. L. 111–203, § 985(b)(6)(A), (B), redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively, realigned margins, and, in subpar. (B), struck out “The order granting registration shall not be effective until such government securities broker or government securities dealer has become a member of a national securities exchange registered under section 78f of this title, or a securities association registered under section 78o–3 of this title, unless the Commission has exempted such government securities broker or government securities dealer, by rule or order, from such membership.” after “grant or deny such registration.”

Subsec. (c)(1)(C). Pub. L. 111–203, § 929F(b)(1), substituted “any person who is, or at the time of the alleged misconduct was, associated or seeking to become associated” for “any person associated, or seeking to become associated,”.

Subsec. (c)(2)(A), (B). Pub. L. 111–203, § 929F(b)(2)(A), (B), inserted “, seeking to become associated, or, at the time of the alleged misconduct, associated or seeking to become associated” after “any person associated”.

Subsec. (g)(1). Pub. L. 111–203, § 376(3), struck out “the Director of the Office of Thrift Supervision, the Federal Savings and Loan Insurance Corporation,” after “the Federal Deposit Insurance Corporation,”.

2004—Subsec. (h). Pub. L. 108–458 added subsec. (h).

2002—Subsec. (c)(1)(A), (C). Pub. L. 107–204 substituted “, or is subject to an order or finding,” for “or omission” and “(H), or (G)” for “or (G)”.

1998—Subsec. (f)(5). Pub. L. 105–353 substituted “class of persons” for “class or persons”.

1993—Subsec. (a)(2)(ii). Pub. L. 103–202, § 109(b)(1), inserted “The order granting registration shall not be effective until such government securities broker or government securities dealer has become a member of a national securities exchange registered under section 78f of this title, or a securities association registered under section 78o–3 of this title, unless the Commission has exempted such government securities broker or government securities dealer, by rule or order, from such membership.” before “The Commission may extend”.

Subsec. (a)(4). Pub. L. 103–202, § 108(2), added par. (4). Former par. (4) redesignated (5).

Pub. L. 103–202, § 103(b)(1), inserted “, other than subsection (d)(3),” after “subsection (a), (b), or (d) of this section”.

Subsec. (a)(5). Pub. L. 103–202, § 108(1), redesignated par. (4) as (5).

Subsec. (b)(3) to (7). Pub. L. 103–202, § 106(a), added par. (3) and redesignated former pars. (3) to (6) as (4) to (7), respectively.

Subsec. (d)(2). Pub. L. 103–202, § 109(c), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Information received by any appropriate regulatory agency or the Secretary from or with respect to any government securities broker or government securities dealer or with respect to any person associated therewith may be made available by the Secretary or the recipient agency to the Commission, the Secretary, any appropriate regulatory agency, and any self-regulatory organization.”

Subsec. (d)(3). Pub. L. 103–202, § 103(a), added par. (3).

Subsec. (f). Pub. L. 103–202, § 104(2), added subsec. (f). Former subsec. (f) redesignated (g).

Subsec. (f)(2). Pub. L. 103–202, § 103(b)(2), inserted “, other than subsection (d)(3)” after “threatened violation of the provisions of this section” and “(except subsection (d)(3))” after “other than this section”.

Subsec. (g). Pub. L. 103–202, § 104(1), redesignated subsec. (f) as (g).

Pub. L. 103–202, § 102, struck out subsec. (g) which read as follows:

“(1) The authority of the Secretary to issue orders and to propose and adopt rules under this section shall terminate on October 1, 1991.

“(2) All orders and rules—

“(A) which have been issued or adopted by the Secretary, and

“(B) which are in effect on the date specified in paragraph (1),

shall continue in effect according to their terms.”

1990—Subsec. (b)(2) to (6). Pub. L. 101–432 added par. (2) and redesignated former pars. (2) to (5) as (3) to (6), respectively.

Subsec. (c)(1)(A), (C). Pub. L. 101–550, § 203(c)(1), substituted “(A), (D), (E), or (G)” for “(A), (D), or (E)”.

Subsec. (f)(2). Pub. L. 101–550, § 203(c)(2), substituted “the rules or regulations under any such other provision, or investigations pursuant to section 78u(a)(2) of this title to assist a foreign securities authority” for “or the rules or regulations under any such other provision”.

1989—Subsec. (f)(1). Pub. L. 101–73 substituted “Director of the Office of Thrift Supervision” for “Federal Home Loan Bank Board”.

1987—Subsec. (a)(1)(B)(i). Pub. L. 100–181 substituted “When such” for “When”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by sections 929F(b) and 985(b)(6) of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

Amendment by section 376(3) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress.

### Effective Date

Pub. L. 99–571, title IV, §§ 401–403, Oct. 28, 1986, 100 Stat. 3224, 3225, provided that: GENERAL EFFECTIVE DATES.

“Except as provided in section 402, this Act [enacting section 78o–5 of this title and section 9110 of Title 31, Money and Finance, amending sections 78c, 78o, 78o–3, 78q, 78w, 78y, 80a–9, and 80b–3 of this title and section 3121 of Title 31, and enacting provisions set out as notes under sections 78a and 78o–5 of this title] and the amendments made by this Act shall take effect 270 days after the date of enactment of this Act [Oct. 28, 1986].

EFFECTIVE DATE AND REQUIREMENTS FOR REGULATIONS.

“Notwithstanding section 401, the Secretary of the Treasury and each appropriate regulatory agency shall, within 120 days after the date of enactment of this Act [Oct. 28, 1986], publish for notice and public comment such regulations as are initially required to implement this Act, which regulations shall become effective as temporary regulations 210 days after the date of enactment of this Act and as final regulations not later than 270 days after the date of enactment of this Act.

REGISTRATION DATE.

“No person may continue to act as a government securities broker or government securities dealer after 270 days after the date of enactment of this Act [Oct. 28, 1986] unless such person has been registered or has provided notice to the Commission or the appropriate regulatory agency as required by the amendment made by section 101 of this Act [enacting section 78o–5 of this title].”

### Transitional and Savings Provisions

Pub. L. 99–571, title III, § 301, Oct. 28, 1986, 100 Stat. 3224, provided that: Effect on Pending Administrative Proceedings.—The provisions of this Act [see Effective Date note above] shall not affect any proceedings pending on the effective date of this Act [see Effective Date note above]. Effect on Pending Judicial Proceedings.—The provisions of this Act shall not affect suits commenced prior to the effective date of this Act, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and effect as if this Act had not been enacted. Discretion of the Federal Reserve Bank of New York.—Nothing in this Act shall be construed to limit or impair the discretion or authority of the Federal Reserve Bank of New York to require reports or establish terms and conditions in connection with the Bank’s relationship with any government securities broker or government securities dealer, including a primary dealer. Jurisdiction of the Commodity Futures Trading Commission.—Nothing in this Act affects the jurisdiction of the Commodity Futures Trading Commission as set forth in the Commodity Exchange Act [7 U.S.C. 1 et seq.] over trading of commodity futures contracts and options on such contracts involving government securities.”

### Construction of 1993 Amendment

Pub. L. 103–202, title I, § 111, Dec. 17, 1993, 107 Stat. 2353, provided that: In General.—No provision of, or amendment made by, this title [amending this section and sections 78c, 78o, 78o–3, 78s, and 78w of this title and enacting provisions set out as notes below] may be construed— to govern the initial issuance of any public debt obligation, or to grant any authority to (or extend any authority of) the Securities and Exchange Commission, any appropriate regulatory agency, or a self-regulatory organization— to prescribe any procedure, term, or condition of such initial issuance, to promulgate any rule or regulation governing such initial issuance, or to otherwise regulate in any manner such initial issuance. Exception.—Subsection (a) of this section shall not apply to the amendment made by section 110 of this Act [amending section 78o of this title]. Public Debt Obligation.—For purposes of this section, the term ‘public debt obligation’ means an obligation subject to the public debt limit established in section 3101 of title 31, United States Code.”

### Transfer of Functions

Federal Savings and Loan Insurance Corporation abolished and functions transferred, see sections 401 to 406 of Pub. L. 101–73, set out as a note under section 1437 of Title 12, Banks and Banking.

### Congressional Findings

Pub. L. 103–202, title I, § 101, Dec. 17, 1993, 107 Stat. 2344, provided that: “The Congress finds that— the liquid and efficient operation of the government securities market is essential to facilitate government borrowing at the lowest possible cost to taxpayers; the fair and honest treatment of investors will strengthen the integrity and liquidity of the government securities market; rules promulgated by the Secretary of the Treasury pursuant to the Government Securities Act of 1986 [see Short Title of 1986 Amendment note set out under section 78a of this title] have worked well to protect investors from unregulated dealers and maintain the efficiency of the government securities market; and extending the authority of the Secretary and providing new authority will ensure the continued strength of the government securities market.”

Pub. L. 99–571, § 1(b), Oct. 28, 1986, 100 Stat. 3208, provided that: “The Congress finds that transactions in government securities are affected with a public interest which makes it necessary— to provide for the integrity, stability, and efficiency of such transactions and of matters and practices related thereto; to impose adequate regulation of government securities brokers and government securities dealers generally; and to require appropriate financial responsibility, recordkeeping, reporting, and related regulatory requirements;in order to protect investors and to insure the maintenance of fair, honest, and liquid markets in such securities.”

### Study of Regulatory System for Government Securities

Pub. L. 103–202, title I, § 112, Dec. 17, 1993, 107 Stat. 2354, provided that: Joint Study.—The Secretary of the Treasury, the Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System shall— with respect to any rules promulgated or amended after October 1, 1991, pursuant to section 15C of the Securities Exchange Act of 1934 [15 U.S.C. 78o–5] or any amendment made by this title [amending this section and sections 78c, 78o, 78o–3, 78s, and 78w of this title], and any national securities association rule changes applicable principally to government securities transactions approved after October 1, 1991— evaluate the effectiveness of such rules in carrying out the purposes of such Act [15 U.S.C. 78a et seq.]; and evaluate the impact of any such rules on the efficiency and liquidity of the government securities market and the cost of funding the Federal debt; evaluate the effectiveness of surveillance and enforcement with respect to government securities, and the impact on such surveillance and enforcement of the availability of automated, time- sequenced records of essential information pertaining to trades in such securities; and submit to the Congress, not later than March 31, 1998, any recommendations they may consider appropriate concerning— the regulation of government securities brokers and government securities dealers; the dissemination of information concerning quotations for and transactions in government securities; the prevention of sales practice abuses in connection with transactions in government securities; and such other matters as they consider appropriate. Treasury Study.—The Secretary of the Treasury, in consultation with the Securities and Exchange Commission, shall— conduct a study of— the identity and nature of the business of government securities brokers and government securities dealers that are registered with the Securities and Exchange Commission under section 15C of the Securities Exchange Act of 1934 [15 U.S.C. 78o–5]; and the continuing need for, and regulatory and financial consequences of, a separate regulatory system for such government securities brokers and government securities dealers; and submit to the Congress, not later than 18 months after the date of enactment of this Act [Dec. 17, 1993], the Secretary’s recommendations for change, if any, or such other recommendations as the Secretary considers appropriate.”

### Studies and Recommendations With Respect to Extension of Treasury Authority

Pub. L. 99–571, title I, § 103, Oct. 28, 1986, 100 Stat. 3221, directed Secretary of the Treasury, together with Securities and Exchange Commission and Board of Governors of the Federal Reserve System, to evaluate the effectiveness of the rules promulgated pursuant to 15 U.S.C. 78o–5 in effecting the purposes of this chapter, and shall submit to Congress, not later than Oct. 1, 1990, their recommendation with respect to the extension of the Secretary’s authority under 15 U.S.C. 78o–5 and such other recommendations as they considered appropriate; and directed Comptroller General to conduct a study of the regulation of government securities brokers and government securities dealers pursuant to 15 U.S.C. 78o–5 and the effectiveness of the amendments made by this Act in protecting investors and in effecting the purposes described in 15 U.S.C. 78o–5(b)(2), and submit to Congress, not later than Mar. 31, 1990, his recommendations with respect to the extension of the Secretary’s authority under 15 U.S.C. 78o–5 and such other recommendations as he considered appropriate.