RegAlert2004-06-15
Added · Updated
SEC Division of Trading and Markets no-action letter: Philadelphia Stock Exchange, Inc.
The SEC staff determines that members trading with their own customers through facilities where orders trade in whole or in part with customer orders ahead of other trading interest participate in the execution of the transaction. Consequently, such members may not rely on Rule 11a2-2(T) for an exemption from the Section 11(a)(1) prohibition of the Securities Exchange Act of 1934. This interpretation clarifies that sending an order for its own account coupled with a customer order with the understanding of priority trading constitutes participation in execution.
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June 15, 2004
Mr. Lanny A. Schwartz Executive Vice President and General Counsel Philadelphia Stock Exchange, Inc. 1900 Market Street Philadelphia, PA 19103-3584
Dear Mr. Schwartz:
This letter is to remind you of your obligations to enforce the prohibitions under Section 11(a) of the Securities Exchange Act of 1934 ("Exchange Act"). Specifically, Section 11(a) prohibits a member of a national securities exchange from effecting transactions on that exchange for its own account, the account of an associated person, or an account over which it or its associated person exercises discretion (collectively, covered accounts) unless an exception applies. 1 Among the transactions excepted are those by a dealer acting in the capacity of a market maker 2 , bona fide arbitrage or hedge transactions 3 , transactions made to offset errors 4 , and proprietary transactions by certain members that yield priority, parity, and precedence to non-members (except those non-members who are affiliated with members). 5
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SEC published 7 documents in the last 30 days. We email you each new one the day it's published.