3-2-73 gift 1973 LETTER OF TRANSMITTAL February 1973. DEAR MR. CHAIRMAN: Transmitted herewith is the final report of the Subcommittee on Securities in connection with its study of the securities industry. Senate Resolution 109, agreed to June 21, 1971, authorized expenditures and employment of personnel by the Committee on Banking, Housing and Urban Affairs "to examine, investigate and make a complete study of any and all matters pertaining to the securities industry and securities markets of the United States." Senate Resolution 244, agreed to March 6, 1972, authorized additional expenditures for this purpose and directed the Committee to “report its findings, together with such recommendations for legislation as it deems advisable . . . to the Senate at the earliest practicable date, but not later than February 28, 1973." Pursuant to this authorization, the Subcommittee on Securities has obtained information by means of letters, interviews, questionnaires, and public hearings. The Subcommittee's analysis of this information, together with recommendations for legislation, is set forth in this report. The Chairman of the Subcommittee wishes to thank the members and staff of the Securities and Exchange Commission, the officers and staff of the national securities exchanges and the National Association of Securities Dealers, and representatives of industry groups and individual firms for their cooperation and assistance in making information available to the Subcommittee. Sincerely, HARRISON A. WILLIAMS, Jr., Chairman, Subcommittee on Securities. (III) CONTENTS Page Summary of conclusions and recommendations- CHAPTER I. THE STRUCTURE OF THE INDUSTRY A. Regulation of Financial and Operational Aspects of the Securities 1. Financial Responsibility of Brokers and Dealers b. Financial and Operational Crisis. C. Case Study of NYSE Net Capital Rule- d. Securities Investor Protection Act of 1970. ii. Unsafe and Unsound Practices Report_ iii. Regulatory Improvements.. g. Subcommittee's Recommendations. 2. Processing of Securities Transfers.. 1. The Benefits of Competitive Commission Rates. b. Difficulty of Ascertaining Appropriate Rates. ii. Impediment to Industry Adjustment... c. Fixed Commissions as a Cause of Market Distortions.- 2. The Arguments Against Competition.-- a. Effect on the Industry and its Ability to Mobilize i. The Competitive Posture of Large and Small b. Effect on Trading Markets - c. Effect on Individual Investors. ii. Research and Other Services d. Effect on Institutional Research. C. Institutional Membership)-- a. The Growth of Institutional Investors and the Shift to b. Effect on the Brokerage Business- ii. Brokers' Expansion into Money Management.-- d. Exchange Reaction to Institutional Membership- i. New York and American Stock Exchanges ii. Pacific Coast Stock Exchange.. iii. Midwest Stock Exchange.-- iv. PBW Stock Exchange- 66 67 68 69 71 72 72 C. Institutional Membership-Continued 2. Problems Resulting from Combination of Money Management Page a. Barriers to Fair Competition Between Money Managers. 73 iv. Discriminating Against Other Customers. v. Determining Appropriate Commissions. c. Interference with the Evolution of the Securities 4. The Subcommittee's Approach-Prohibiting Self-Dealing - a. Eliminating the Combination of the Brokerage and CHAPTER II. THE STRUCTURE OF THE SECURITIES A. The Development of a Central Market System. c. Growth of Competing Markets in NYSE-Listed d. Consequences of Use of Other Markets.. 2. Steps Toward the Creation of a Central Market System. b). Barriers to Communication and Competition. c. Central Communications Systems. i. Composite Transaction Reporting System. ii. Composite Quotation System. d. Elimination of Regulatory Barriers. B. What Kind of Central Varket System? 1. “Auction" and "Dealer” Markets. 2. Goals of a Central Market System. 3. Characteristics of Present Markets. 4. Implementation of a Central Market System. a. Priority for Public Orders- b. Handling of Institutional Transactions. i. Restrictions on Institutional Trading - ii. Separation of Individual and Institutional iii. Improved Market-Making Capacity. c. Regulation of the Activities of Market Makers - i 116 5. Opposition to the Central Market System. a. The Right to Decide where a Security Will Be Traded.. b. “Elimination of the Auction Market”. c. Regulatory Competitive Controls Market 6. Which Securities should be Traded on Exchanges? a. Characteristics of Listed and Unlisted Issues- b. History of “Unlisted Trading Privileges”. Auction” Markets for Unlisted Securities.. CHAPTER III. THE STRUCTURE OF THE REGULATORY 1. Statutory History of the Self-Regulatory Concept in the b. National Securities Associations- Page 149 150 150 151 1.53 154 1.35 157 160 164 170 170 172 172 174 175 177 179 180 180 180 183 184 B. The Operations of the self-Regulatory Agencies. i. Disciplinary Actions.. iii. Actions Affecting Non-Members - a. Relation to the SEC Jurisdiction.. Agencies 1. The SEC's Request for Additional Authority to Oversee the Self-Regulatory Agencies... tory Rules... i. Power to Disapprove Proposed Rules ing Rules.. ings Conducted by Self-Regulatory Agencies.--- a. The SEC's Implementation of Its Regulatory Recom mendations. Surveillance Program. nated Loan Agreement. V. Conclusions and Recommendations.. Oversight Functions. 186 188 191 NASDAQ- tivities. i. Inspections of Stock Exchanges. Specialists.. iii. Conclusions and Recommendations.. a. Notice and Opportunity to Participate in the Rule Re view Process h. Approval of Self-Regulatory Rules. Agencies. 1. Judicial Review of Commission and Self-Regulatory Action. i. Commission Action - view. V. Collateral Attack on Self-Regulatory Action.- dicial Review---- 192 192 193 193 194 194 195 196 196 197 199 201 205 205 207 208 210 211 211 212 213 215 |
0 Anmeldelser Anmeldelsene blir ikke bekreftet, men Google ser etter falskt innhold og fjerner slikt innhold som avdekkes Skriv anmeldelse |