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Broker-dealer: Difference between revisions
→Foreign broker-dealers and registered broker-dealers
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===[[Foreign broker-dealer]]s and [[registered broker-dealer]]s=== | ===[[Foreign broker-dealer]]s and [[registered broker-dealer]]s=== | ||
A [[foreign broker-dealer]] (foreign being from the perspective — is there another? — of the [[United States of America]]), means that poor, huddled mass of international [[broker|brokers]] and [[dealer|dealers]] who were turned away, or never arrived, at Ellis Island and have not subsequently been registered with the {{tag|Securities and Exchange Commission}}. A [[registered broker-dealer]] denotes one of those blessed souls who have. | A [[foreign broker-dealer]] (foreign being from the perspective — is there another? — of the [[United States of America]]), means that poor, huddled mass of international [[broker|brokers]] and [[dealer|dealers]] who were turned away, or never arrived, at Ellis Island and have not subsequently been registered with the {{tag|Securities and Exchange Commission}}. A [[registered broker-dealer]] denotes one of those blessed souls who have. | ||
Rule 15 (a)(1) provides in the gummed up lingo of a securities legistlator scarred by the Crash of 1929, as follows: | |||
:{{box| | |||
'''15 U.S. Code § 78o - Registration and regulation of [[brokers]] and [[dealers]]''' | |||
(a) Registration of all persons utilizing exchange facilities to effect transactions; exemptions | |||
:(1) It shall be unlawful for any [[broker]] or [[dealer]] which is either a person [[other than]] a natural person or a natural person not associated with a broker or dealer which is a person other than a natural person (other than such a broker or dealer whose business is exclusively intrastate and who does not make use of any facility of a national securities exchange) to make use of the mails or any means or instrumentality of interstate commerce to effect any transactions in, or to induce or attempt to induce the purchase or sale of, any security (other than an exempted security or commercial paper, bankers’ acceptances, or commercial bills) unless such broker or dealer is registered in accordance with subsection (b) of this section. | |||
}} | |||
This boils down, to the [[JC]]’s unqualified eye, to say: ''“it is illegal for any [[broker/dealer]] to effect any transaction in a security or of induce any purchase or sale, if it is not a [[registered broker-dealer]] under Section 15(b) of the [[Securities Exchange Act of 1934]]”'' | |||
Of much interest to those wanting to handle or “effect” transactions in securities with [[US person]]s. The {{tag|SEC}} has lots of rules about this, and as you can probably imagine they’re all simple, clear and easy to understand. | Of much interest to those wanting to handle or “effect” transactions in securities with [[US person]]s. The {{tag|SEC}} has lots of rules about this, and as you can probably imagine they’re all simple, clear and easy to understand. | ||