Regulatory Alerts2022-07-29
Exemption for Certain Exchange Members
The Securities and Exchange Commission proposes amendments to Rule 15b9-1 that replace the existing de minimis allowance with narrower exemptions from mandatory national securities association membership for registered brokers and dealers. These targeted exemptions apply to exchange members carrying no customer accounts that effect off-exchange transactions, specifically covering orders routed for order protection compliance or executed solely to complete the stock leg of a stock-option order. By eliminating the proprietary trading exclusion and tightening eligibility criteria, the rule ensures consistent self-regulatory oversight and transaction reporting for growing electronic proprietary trading firms, particularly those active in U.S. Treasury securities.