SECTION
15(c)(1) OF THE SECURITIES EXCHANGE ACT OF 1934
15
U.S.C. § 78o(c)(1) (1988)
No
broker or dealer shall make use of the mails or any means or instrumentality of
interstate commerce to effect any transaction in, or to induce or attempt to
induce the purchase or sale of, any security (other than commercial paper,
bankers' acceptances, or commercial bills) otherwise than on a national
securities exchange of which it is a member by means of any manipulative,
deceptive, or other fraudulent device or contrivance, and no municipal
securities dealer shall make use of the mails or any means or instrumentality
of interstate commerce to effect any transaction in, or to induce or attempt to
induce the purchase or sale of, any municipal security by means of any
manipulative, deceptive, or other fraudulent device or contrivance. The Commission shall, for the purposes of
this paragraph, by rules and regulations define such devices or contrivances as
are manipulative, deceptive, or otherwise fraudulent.
SECTION
15(c)(2) OF THE SECURITIES EXCHANGE ACT OF 1934
15
U.S.C. § 78o(c)(2) (1988)
No
broker or dealer shall make use of the mails or any means or instrumentality of
interstate commerce to effect any transaction in, or to induce or attempt to
induce the purchase or sale of, any security (other than an exempted security
or commercial paper, bankers' acceptances, or commercial bills) otherwise than
on a national securities exchange of which it is a member, in connection with
which such broker or dealer engages in any fraudulent, deceptive, or
manipulative act or practice, or makes any fictitious quotation, and no
municipal securities dealer shall make use of the mails or any means or
instrumentality of interstate commerce to effect any transaction in, or to
induce or attempt to induce the purchase or sale of, any municipal security in
connection with which such municipal securities dealer engages in any
fraudulent, deceptive, or manipulative act or practice, or makes any fictitious
quotation. The Commission shall, for
the purposes of this paragraph, by rules and regulations define, and prescribe
means reasonably designed to prevent, such acts and practices as are
fraudulent, deceptive, or manipulative and such quotations as are fictitious.