The U.S. Securities and Exchange Commission (SEC) oversees the registration of broker-dealers, individuals or firms engaged in buying and selling securities. This registration ensures adherence to federal securities laws and SEC rules, safeguarding market integrity and investor confidence.
Chair Gary Gensler recently provided clarity on the amendments to Rule 15b9-1, a specific regulation concerning the registration requirements for broker-dealers with national securities associations like the Financial Industry Regulatory Authority (FINRA). Established in the 1960s and last significantly updated in 1976, the rule is being amended to better reflect the current landscape of the capital markets.
Rule 15b9-1 was crafted to allow a subset of exchange floor members to bypass membership with the National Association of Securities Dealers (NASD), the predecessor to FINRA. This exemption was tailored for broker-dealers primarily registered…
