SEC v. Binance Court Filing, retrieved on June 5, 2023 is part of . You can jump to any part in this filing . This is part 10 of 69. HackerNoon’s Legal PDF Series here BACKGROUND I. STATUTORY AND LEGAL FRAMEWORK C. Registration of Exchanges, Broker-Dealers, and Clearing Agencies Is Essential to the Proper Functioning of the U.S. Securities Markets and to the Protection of Investors 57. In U.S. securities markets, the functions described above are typically carried out by separate legal entities that are independently registered and regulated by the SEC. Separation of these core functions aims to minimize conflicts between the interests of securities intermediaries and the investors they serve. Registration and concomitant disclosure obligations allow the SEC to oversee the business of intermediaries and their relationships with investors and to thereby protect investors from manipulation, fraud, and other abuses. 58. Investors in securities markets do not interact directly with exchanges or clearing agencies but instead are customers of broker-dealers that effect transactions on investors’ behalf. Only broker-dealers (or natural persons associated with a broker-dealer) may become members of a national securities exchange. In addition, broker-dealers that have customers must become members of the Financial Industry Regulatory Authority (“FINRA”), an SRO that imposes its own rules and oversight over broker-dealers, particularly as to protecting retail investors. 59. Registered national securities exchanges and clearing agencies are also SROs and therefore must submit all of their proposed rules and rules changes to the SEC for review. 60. As noted, the Exchange Act also subjects registered intermediaries to important record-keeping and inspection requirements. For example, Section 17 of the Exchange Act [15 U.S.C. § 78q] requires registered national securities exchanges, broker-dealers, and clearing agencies to make and keep records as the SEC prescribes by rule and subjects those records to reasonable periodic, special, or other examinations by representatives of the SEC. 61. These provisions are designed to ensure that intermediaries follow the rules that protect investors and promote the fair and efficient operation of the securities markets. These provisions also seek to ensure, among other things, that investors’ securities orders are handled fairly and transparently, that securities transactions result in settlement finality, and that investors’ assets are protected and can be recovered if necessary. Continue Reading . Here About HackerNoon Legal PDF Series: We bring you the most important technical and insightful public domain court case filings. This court case 1:23-cv-01599 retrieved on September 6, 2023, from is part of the public domain. The court-created documents are works of the federal government, and under copyright law, are automatically placed in the public domain and may be shared without legal restriction. docdroid.net

Legal Definitions of Crypto Assets and Crypto Trading Platforms 

Understanding the Exchange Act's Registration Requirements 

Read My Stories

Too Long; Didn't Read

CTA: Download the FREE AI Productivity Shift report

How the Legal Framework for the U.S Securities Market Affects Crypto Assets and Trading

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

SEC Seeks Over $1.7 Billion in Penalties from Ripple Labs for Alleged XRP Securities Law Violations

A Legal Perspective on How Crypto Asset Trading Platforms Work

BAM Management and BAM Trading Charged for "Making Materially False Statements and Omissions"

BAM Trading Accused of Operating as an Unregistered Broker on Binance.US Platform

BAM Trading in the Hot Seat for Selling Staking Program As Unregistered Security

SEC Seeks Over $1.7 Billion in Penalties from Ripple Labs for Alleged XRP Securities Law Violations

A Legal Perspective on How Crypto Asset Trading Platforms Work

BAM Management and BAM Trading Charged for "Making Materially False Statements and Omissions"

BAM Trading Accused of Operating as an Unregistered Broker on Binance.US Platform

BAM Trading in the Hot Seat for Selling Staking Program As Unregistered Security

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps