in subparagraph (A), (B), or (C) other than a put, ca straddle, option, or privilege (i) that is traded on one or more national secu ties exchanges; or (ii) for which quotations are disseminated throug an automated quotation system operated by a re istered securities association. (43) The term "government securities broker" means an person regularly engaged in the business of effecting tran actions in government securities for the account of others, b does not include (A) any corporation the securities of which are gover ment securities under subparagraph (B) or (C) of par graph (42) of this subsection; or (B) any person registered with the Commodity Futur Trading Commission, any contract market designated I the Commodity Futures Trading Commission, such co tract market's affiliated clearing organization, or any flo trader on such contract market, solely because such perso effects transactions in government securities that the Cor mission, after consultation with the Commodity Futur Trading Commission, has determined by rule or order be incidental to such person's futures-related business. (44) The term "government securities dealer" means ar person engaged in the business of buying and selling gover ment securities for his own account, through a broker or othe wise, but does not include (A) any person insofar as he buys or sells such secu ties for his own account, either individually or in some duciary capacity, but not as a part of a regular busines (B) any corporation the securities of which are gover ment securities under subparagraph (B) or (C) of par graph (42) of this subsection; (C) any bank, unless the bank is engaged in the bus ness of buying and selling government securities for i own account other than in a fiduciary capacity, through broker or otherwise; or (D) any person registered with the Commodity F tures Trading Commission, any contract market de ignated by the Commodity Futures Trading Commissio such contract market's affiliated clearing organization, any floor trader on such contract market, solely becau such person effects transactions in government securiti that the Commission, after consultation with the Commo ng a similar status or performing similar functions), her employee of such government securities broker ent securities dealer who is engaged in the managetion, supervision, or performance of any activities government securities, and any person directly or ontrolling, controlled by, or under common control government securities broker or government securi e term "financial institution" means ; a bank (as defined in paragraph (6) of this sub a foreign bank (as such term is used in the Interl Banking Act of 1978); and a savings association (as defined in section 3(b) of deral Deposit Insurance Act) the deposits of which ured by the Federal Deposit Insurance Corporation. e term "securities laws" means the Securities Act of .S.C. 78a et seq.), the Securities Exchange Act of .S.C. 78a et seq.), the Public Utility Holding Comf 1935 (15 U.S.Ĉ. 79a et seq.), the Trust Indenture (15 U.S.C. 77aaa et seq.), the Investment Company (15 U.S.C. 80a-1 et seq.), the Investment Advisers (15 U.S.C. 80b et seq.), and the Securities Investor Act of 1970 (15 U.S.C. 78aaa et seq.). e term "registered broker or dealer" means a broker egistered or required to register pursuant to section of this title, except that in paragraph (3) of this subsections 6 and 15A the term means such a broker nd a government securities broker or government ealer registered or required to register pursuant to (a)(1)(A) of this title. poses of this p (B) The Com designate any eq scribed in clause meaning of the t securities is tra change or throug clause (ii) of sub (C) In exerci scribe rules, reg termine that su the public intere (52) The t means any (A) mental body or tion empowered force its laws r commercial lend a commodity fo on or subject to or foreign equiv bership organiz pation of its me (53)(A) The a security that by at least 1n tion, and either (i) rep notes or le tion of a s sured depo ance comp and exami company of (ii) is notes or le course to e terms "person associated with a transfer agent" ated person of a transfer agent" mean any person employee whose functions are solely clerical or minectly engaged in the management, direction, supererformance of any of the transfer agent's activities et to transfer agent functions, and any person didirectly controlling such activities or controlled by agent in connection with such activities. e term "foreign securities authority" means any forment, or any governmental body or regulatory orgapowered by a foreign government to administer or laws as they relate to securities matters. The term "penny stock" means any equity security a security that is registered or approved for registration and traded ational securities exchange that meets such criteria 00-120 (iv) excluded, on the basis of exceeding a minim price, net tangible assets of the issuer, or other relev criteria, from the definition of such term by rule or reg tion which the Commission shall prescribe for purposes this paragraph; or (v) exempted, in whole or in part, conditionally or conditionally, from the definition of such term by rule, ulation, or order prescribed by the Commission. (B) The Commission may, by rule, regulation, or ord designate any equity security or class of equity securities scribed in clause (i) or (ii) of subparagraph (A) as within meaning of the term "penny stock" if such security or class securities is traded other than on a national securities change or through an automated quotation system described clause (ii) of subparagraph (A). (C) In exercising its authority under this paragraph to scribe rules, regulations, and orders, the Commission shall termine that such rule, regulation, or order is consistent w the public interest and the protection of investors. (52) The term "foreign financial regulatory author means any (A) foreign securities authority, (B) other gove mental body or foreign equivalent of a self-regulatory organ tion empowered by a foreign government to administer or force its laws relating to the regulation of fiduciaries, tru commercial lending, insurance, trading in contracts of sale a commodity for future delivery, or other instruments tra on or subject to the rules of a contract market, board of tra or foreign equivalent, or other financial activities, or (C) m bership organization a function of which is to regulate part pation of its members in activities listed above. (53)(A) The term "small business related security" me a security that is rated in 1 of the 4 highest rating catego by at least 1 nationally recognized statistical rating organ tion, and either— (i) represents an interest in 1 or more promiss notes or leases of personal property evidencing the obli tion of a small business concern and originated by an sured depository institution, insured credit union, ins ance company, or similar institution which is supervi and examined by a Federal or State authority, or a fina company or leasing company; or (ii) is secured by an interest in 1 or more promiss notes or leases of personal property (with or without course to the issuer or lessee) and provides for payme 88-128 95-3 to assure servicing of such notes or leases, or the r timely receipt of amounts payable under such leases; he term "small business concern" means a busit meets the criteria for a small business concern ed by the Small Business Administration under (a) of the Small Business Act; the term "insured depository institution" has the aning as in section 3 of the Federal Deposit Insur; and the term "insured credit union" has the same as in section 101 of the Federal Credit Union Act. mission and the Board of Governors of the Federal as to matters within their respective jurisdictions, er by rules and regulations to define technical, g, and other terms used in this title, consistently ns and purposes of this title. sion of this title shall apply to, or be deemed to intive department or independent establishment of es, or any lending agency which is wholly owned, ctly, by the United States, or any officer, agent, or such department, establishment, or agency, acting f his official duty as such, unless such provision reference to such department, establishment, or er of municipal securities or officer or employee n the course of his official duties as such shall be "broker", "dealer", or "municipal securities dealer" of buying, selling, or effecting transactions in the S. CURITIES AND EXCHANGE COMMISSION ] (a) There is hereby established a Securities and nission (hereinafter referred to as the "Commisposed of five commissioners to be appointed by the d with the advice and consent of the Senate. Not e of such commissioners shall be members of the arty, and in making appointments members of difparties shall be appointed alternately as nearly as ble. No commissioner shall engage in any other on, or employment than that of serving as commisl any commissioner participate, directly or inditock-market operations or transactions of a charregulation by the Commission pursuant to this missioner shall hold office for a term of five years ccessor is appointed and has qualified, except that ignated by the President (1) APPOINTMEN (d) Notwithstand ers of participants i grams may pay such See also Reorganization 3Section 1106(a) of the Cl after the date of the enactment of this title.1 (b) APPOINTMENT AND COMPENSATION OF STAFF AND LEASI AUTHORITY. (1) APPOINTMENT AND COMPENSATION.- The Commissi is authorized to appoint and fix the compensation of such o cers, attorneys, examiners, and other experts as may be n essary for carrying out its functions under this Act, without gard to the provisions of other laws applicable to the empl ment and compensation of officers and employees of the Unit States, 2 and the Commission may, subject to the civil-serv laws, appoint such other officers and employees as are n essary in the execution of its functions and fix their salar in accordance with the Classification Act of 1923, as amende (2) LEASING AUTHORITY.-Nothwithstanding any other p vision of law, the Commission is authorized to enter direc into leases for real property for office, meeting, storage, a such other space as is necessary to carry out its functions, a shall be exempt from any General Services Administrati space management regulations or directives. (c) Notwithstanding any other provision of law, in accordan with regulations which the Commission shall prescribe to preve conflicts of interest, the Commission may accept payment and imbursement, in cash or in kind, from non-Federal agencies, org nizations, and individuals for travel, subsistence, and other n essary expenses incurred by Commission members and employe in attending meetings and conferences concerning the functions activities of the Commission. Any payment or reimbursement cepted shall be credited to the appropriated funds of the Comm sion. The amount of travel, subsistence, and other necessary penses for members and employees paid or reimbursed under t subsection may exceed per diem amounts established in offic travel regulations, but the Commission may include in its regu tions under this subsection a limitation on such amounts. (d) Notwithstanding any other provision of law, former empl ers of participants in the Commission's professional fellows p grams may pay such participants their actual expenses for relo 1See also Reorganization Plan No. 10 of 1950 and Pub. L. 87-592, printed in the apper to this compilation. 2 Authority to employ "without regard to the provisions of other laws" superseded and dered ineffective by section 1 of the Act of November 26, 1940 (54 Stat. 1211, 5 U.S.C. 33 note). 3 Section 1106(a) of the Classification Act of 1949, 63 Stat. 972, provided that whenever erence is made in any other law to the Classification Act of 1923, as amended, such refere shall be held and considered to mean the Classification Act of 1949, presently codified in chap 51 and subchaper III of chapter 53 of title 5, United States Code. |