SEC Reproposes Rule on Exemption for Certain Exchange Members
August 1, 2022
The SEC has reproposed its rule Exemption for Certain Exchange Members, which would replace the proprietary trading exemption with more narrow exemptions to the FINRA membership requirement under Section 15(b)(8) of the Securities Exchange Act. Specifically, a “broker-dealer that carries no customer accounts and effects securities transactions other than on a national securities exchange where it is a member would be exempt from Section 15(b)(8) only if those transactions result from routing for order protection purposes by a national securities exchange where the broker-dealer is a member or constitute the execution of the stock leg of a stock-option order.”
For more information, see the press release, fact sheet, and statements by SEC Chair Gary Gensler and Commissioners Hester Peirce and Mark Uyeda on the SEC’s Web site.