SEC Issues Proposed Rule on the Definition of Dealer and Government Securities Dealer

The SEC has issued a proposed rule, Further Definition of “As a Part of a Regular Business” in the Definition of Dealer and Government Securities Dealer. The proposal would “require market participants, such as proprietary (or principal) trading firms, who assume certain dealer functions, in particular those who as act as liquidity providers in the markets, to register with the SEC, become members of a self-regulatory organization (SRO), and comply with federal securities laws and regulatory obligations.”

For more information, see the press release and fact sheet, as well as statements by SEC Chair Gary Gensler and Commissioner Hester M. Peirce, on the SEC’s Web site.