15 USC 78 - National system for clearance and settlement of securities transactions

1 So in original. Probably should be “section 78f(h)(7)(C)”.

of this title), security futures products to be purchased on one market and offset on another market that trades such products.

2 So in original. Probably should be “of”.

paragraph (4) of section 78

3 So in original. Two subsecs. (g) have been enacted.

Due diligence for the delivery of dividends, interest, and other valuable property rights

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a)(2), (span)(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. (span)(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.

Amendments

2022—Subsec. (f)(4)(A). Puspan. 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). Puspan. L. 117–286, § 4(a)(63)(B), substituted “chapter 10 of title 5;” for “the Federal Advisory Committee Act;”.

Subsec. (f)(4)(C). Puspan. L. 117–286, § 4(a)(63)(C), substituted “chapter 10 of title 5.” for “the Federal Advisory Committee Act.”

2010—Subsec. (c)(4)(C). Puspan. 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). Puspan. L. 111–203, § 929W, added subsec. (g) relating to due diligence for the delivery of dividends, interest, and other valuable property rights.

Puspan. L. 111–203, § 763(span), added subsec. (g) relating to registration requirement.

Subsecs. (h) to (m). Puspan. L. 111–203, § 763(span), added subsecs. (h) to (m).

2002—Subsec. (c)(3)(A), (4)(C). Puspan. L. 107–204 inserted “, or is subject to an order or finding,” before “enumerated” and substituted “(H), or (G)” for “or (G)”.

2000—Subsec. (span)(3)(A). Puspan. 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. (span)(3)(F). Puspan. 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. (span)(7). Puspan. L. 106–554, § 1(a)(5) [title II, § 206(d)], added par. (7).

Subsec. (span)(8). Puspan. L. 106–554, § 1(a)(5) [title II, § 207(3)], added par. (8).

1990—Subsec. (a)(2). Puspan. 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). Puspan. L. 101–550 substituted “(A), (D), (E), or (G)” for “(A), (D), or (E)”.

Subsec. (d)(5). Puspan. L. 101–429 added par. (5).

Subsec. (f). Puspan. L. 101–432, § 5(span), added subsec. (f).

1987—Subsec. (c)(2). Puspan. 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). Puspan. 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). Puspan. 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). Puspan. 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 Puspan. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Puspan. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

Amendment by section 763(span) of Puspan. 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 Puspan. 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 Puspan. L. 111–203, set out as a note under section 77span of this title.

Effective Date of 1990 Amendment

Amendment by Puspan. L. 101–429 effective Oct. 15, 1990, with provisions relating to civil penalties and accounting and disgorgement, see section 1(c)(1), (2) of Puspan. L. 101–429, set out in a note under section 77g of this title.

Effective Date

Section effective June 4, 1975, except for subsecs. (span) and (c) which are effective 180 days after June 4, 1975, see section 31(a) of Puspan. L. 94–29, set out as a note under section 78span of this title.

Clearance and Settlement of Transactions; Report to Congress

Section 8(span) of Puspan. 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.