Securities and Exchange Commission September 2023 – Federal Register Recent Federal Regulation Documents

The Securities and Exchange Commission (``Commission'') is adopting amendments to a rule under the Securities Exchange Act of 1934 (``Act'' or ``Exchange Act'') that exempts certain Commission- registered brokers or dealers from membership in a registered national securities association (``Association''). The amendments replace rule provisions that provide an exemption for proprietary trading with narrower exemptions from Association membership for any registered broker or dealer that is a member of a national securities exchange, carries no customer accounts, and effects transactions in securities otherwise than on a national securities exchange of which it is a member. The amendments create exemptions for such a registered broker or dealer that effects securities transactions otherwise than on an exchange of which it is a member that result solely from orders that are routed by a national securities exchange of which it is a member to comply with order protection regulatory requirements, or are solely for the purpose of executing the stock leg of a stock-option order.