in accordance with the findings and to carry out the objectives set forth in paragraph (1) of this subsection.
The Commission shall use its authority under this chapter to end the physical movement of securities certificates in connection with the settlement among brokers and dealers of transactions in securities consummated by means of the mails or any means or instrumentalities of interstate commerce.
The Commission shall revise its regulations in section 240.17Ad-17 of title 17, Code of Federal Regulations, as in effect on December 8, 1997, to extend the application of such section to brokers and dealers and to provide for the following:
The Commission shall adopt such rules, regulations, and orders necessary to implement this subsection no later than 1 year after July 21, 2010. In proposing such rules, the Commission shall seek to minimize disruptions to current systems used by or on behalf of paying agents to process payment to account holders and avoid requiring multiple paying agents to send written notification to a missing security holder regarding the same not yet negotiated check.
It shall be unlawful for a clearing agency, unless registered with the Commission, directly or indirectly to make use of the mails or any means or instrumentality of interstate commerce to perform the functions of a clearing agency with respect to a security-based swap.
A person that clears agreements, contracts, or transactions that are not required to be cleared under this chapter may register with the Commission as a clearing agency.
To be registered and to maintain registration as a clearing agency that clears security-based swap transactions, a clearing agency shall comply with such standards as the Commission may establish by rule. In establishing any such standards, and in the exercise of its oversight of such a clearing agency pursuant to this chapter, the Commission may conform such standards or oversight to reflect evolving United States and international standards. Except where the Commission determines otherwise by rule or regulation, a clearing agency shall have reasonable discretion in establishing the manner in which it complies with any such standards.
The Commission shall adopt rules governing persons that are registered as clearing agencies for security-based swaps under this chapter.
The Commission may exempt, conditionally or unconditionally, a clearing agency from registration under this section for the clearing of security-based swaps if the Commission determines that the clearing agency is subject to comparable, comprehensive supervision and regulation by the Commodity Futures Trading Commission or the appropriate government authorities in the home country of the agency. Such conditions may include, but are not limited to, requiring that the clearing agency be available for inspection by the Commission and make available all information requested by the Commission.
A depository institution or derivative clearing organization registered with the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.] that is required to be registered as a clearing agency under this section is deemed to be registered under this section solely for the purpose of clearing security-based swaps to the extent that, before July 21, 2010-
A depository institution to which this subsection applies may, by the vote of the shareholders owning not less than 51 percent of the voting interests of the depository institution, be converted into a State corporation, partnership, limited liability company, or similar legal form pursuant to a plan of conversion, if the conversion is not in contravention of applicable State law.
The Commodity Futures Trading Commission shall make available to the Commission, upon request, all information determined to be relevant by the Commodity Futures Trading Commission regarding a derivatives clearing organization deemed to be registered with the Commission under paragraph (1).
The Commission may conform the core principles established in this section to reflect evolving United States and international standards.
1 So in original. Probably should be "section 78f(h)(7)(C)".
2 So in original. Probably should be "of".
3 So in original. Two subsecs. (g) have been enacted.
15 U.S.C. § 78q-1
EDITORIAL NOTES
REFERENCES IN TEXTThis chapter, referred to in subsecs. (a)(2), (b)(3)(A), (F), (I), (8), (d)(1), (3)(B), (4), (5), (e), and (h) to (j), was in the original "this title". See References in Text note set out under section 78a of this title.The Commodity Exchange Act, referred to in subsecs. (b)(8) and (l)(1), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables.
AMENDMENTS2022-Subsec. (f)(4)(A). Pub. L. 117-286, §4(a)(63)(A), substituted "chapter 10 of title 5." for "the Federal Advisory Committee Act (5 U.S.C. App.)." Subsec. (f)(4)(B)(i). Pub. L. 117-286, §4(a)(63)(B), substituted "chapter 10 of title 5;" for "the Federal Advisory Committee Act;". Subsec. (f)(4)(C). Pub. L. 117-286, §4(a)(63)(C), substituted "chapter 10 of title 5." for "the Federal Advisory Committee Act." 2010-Subsec. (c)(4)(C). Pub. L. 111-203, §925(a)(3), substituted "12 months or bar any such person from being associated with any transfer agent, broker, dealer, investment adviser, municipal securities dealer, municipal advisor, or nationally recognized statistical rating organization," for "twelve months or bar any such person from being associated with the transfer agent,".Subsec. (g). Pub. L. 111-203, §929 W, added subsec. (g) relating to due diligence for the delivery of dividends, interest, and other valuable property rights. Pub. L. 111-203, §763(b), added subsec. (g) relating to registration requirement.Subsecs. (h) to (m). Pub. L. 111-203, §763(b), added subsecs. (h) to (m). 2002-Subsec. (c)(3)(A), (4)(C). Pub. L. 107-204 inserted ", or is subject to an order or finding," before "enumerated" and substituted "(H), or (G)" for "or (G)". 2000-Subsec. (b)(3)(A). Pub. L. 106-554, §1(a)(5) [title II, §207(1)], inserted "and derivative agreements, contracts, and transactions" after "prompt and accurate clearance and settlement of securities transactions".Subsec. (b)(3)(F). Pub. L. 106-554, §1(a)(5) [title II, §207(2)], inserted "and, to the extent applicable, derivative agreements, contracts, and transactions" after "designed to promote the prompt and accurate clearance and settlement of securities transactions".Subsec. (b)(7). Pub. L. 106-554, §1(a)(5) [title II, §206(d)], added par. (7).Subsec. (b)(8). Pub. L. 106-554, §1(a)(5) [title II, §207(3)], added par. (8).1990-Subsec. (a)(2). Pub. L. 101-432, §5(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: "The Commission is directed, therefore, having due regard for the public interest, the protection of investors, the safeguarding of securities and funds, and maintenance of fair competition among brokers and dealers, clearing agencies, and transfer agents, to use its authority under this chapter to facilitate the establishment of a national system for the prompt and accurate clearance and settlement of transactions in securities (other than exempted securities) in accordance with the findings and to carry out the objectives set forth in paragraph (1) of this subsection. The Commission shall use its authority under this chapter to assure equal regulation under this chapter of registered clearing agencies and registered transfer agents."Subsec. (c)(3)(A), (4)(C). Pub. L. 101-550 substituted "(A), (D), (E), or (G)" for "(A), (D), or (E)". Subsec. (d)(5). Pub. L. 101-429 added par. (5). Subsec. (f). Pub. L. 101-432, §5(b), added subsec. (f). 1987-Subsec. (c)(2). Pub. L. 100-181, §322(1), (2), inserted "and any persons associated with the transfer agent" in first sentence and substituted "45" for "thirty" in second sentence.Subsec. (c)(3), (4). Pub. L. 100-181, §322(3)-(5), added par. (3), struck out former par. (3)(A) which read as follows: "The appropriate regulatory agency for a transfer agent, by order, shall deny registration to, censure, place limitations on the activities, functions, or operations of, suspend for a period not exceeding twelve months, or revoke the registration of such transfer agent, if such appropriate regulatory agency finds, on the record after notice and opportunity for hearing, that such denial, censure, placing of limitations, suspension, or revocation is in the public interest and that such transfer agent has willfully violated or is unable to comply with any provision of this section or section 78q of this title or the rules or regulations thereunder.", redesignated subpars. (B) and (C) of former par. (3) as subpars. (A) and (B), respectively, of new par. (4), and added subpar. (C) to such par. (4).Subsec. (d)(3)(B). Pub. L. 100-181, §322(6), substituted "clearing agency, transfer agent, or person associated with a transfer agent" for "clearing agency or transfer agent". Subsec. (d)(4). Pub. L. 100-181, §322(7), substituted ", transfer agent, or person associated with a transfer agent," for "or transfer agent".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2010 AMENDMENT Amendment by sections 925(a)(3) and 929W 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 763(b) of Pub. L. 111-203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle B (§§761-774) of title VII of Pub. L. 111-203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle B, see section 774 of Pub. L. 111-203, set out as a note under section 77b of this title.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-429 effective Oct. 15, 1990, with provisions relating to civil penalties and accounting and disgorgement, see section 1(c)(1), (2) of Pub. L. 101-429, set out in a note under section 77g of this title.
EFFECTIVE DATESection effective June 4, 1975, except for subsecs. (b) and (c) which are 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.
CLEARANCE AND SETTLEMENT OF TRANSACTIONS; REPORT TO CONGRESS Section 8(b) of Pub. L. 101-432 directed Securities and Exchange Commission, in consultation with Commodity Futures Trading Commission, Board of Governors of the Federal Reserve System, and other relevant regulatory authorities, to examine progress toward establishing linked or coordinated facilities for clearance and settlement of transactions in securities, securities options, contracts of sale for future delivery and options thereon, and commodity options, and to submit to Congress, not later than 2 years from Oct. 16, 1990, a report detailing and evaluating such progress.
- Administration
- the terms "Administration" and "Administrator" mean the Small Business Administration and the Administrator thereof, respectively; and