SEC Amends Exemption for National Securities Association Membership

The Securities and Exchange Commission (SEC) has adopted rule amendments that narrow the exemption from Section 15(b)(8) of the Securities Exchange Act of 1934, requiring broker-dealers to become members of a national securities association. The amendments aim to enhance oversight by the Financial Industry Regulatory Authority (FINRA) of firms engaged in cross-market proprietary trading. The exemptions will be narrower and apply to broker-dealers that do not carry customer accounts and engage in specific types of off-member-exchange securities transactions. The final rule will become effective 60 days after publication in the Federal Register, with a compliance date set for 365 days after publication.