36 1 the question of a stay (which presentation may consist 2 solely of affidavits). 3 "(e) (1) In a proceeding to review disciplinary action 4 taken by a self-regulatory organization against a member 5 or a person associated with a member, after notice and op6 portunity for hearing and upon cisideration of the record 7 before the self-regulatory organization and such other mat8 ters as the Commission may deem material 9 10 11 "(A) if the Commission finds that such member or such person has engaged in such acts or practices, or has omitted such acts, as the self-regulatory organiza12 tion has found him to have engaged in or to have omitted, and that such acts or practices, or omissions to act, are in violation of such provisions of this title, or such rules adopted thereunder, or such rules of the self-regulatory organization as have been designated in the determination of the self-regulatory organization, the Commission shall, by order, so declare and affirm the action taken by the self-regulatory organization or, if appropriate, modify the sanctions or penalties in accordance with paragraph (2) of this subsection, or remand to the self-regulatory organization for further proceedings; or "(B) if the Commission does not find that such member or such person has engaged in such acts or NATIONAL SECURITIES MARKET SYSTEM ACT OF 1973 HEARINGS BEFORE THE SUBCOMMITTEE ON SECURITIES OF THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS UNITED STATES SENATE NINETY-THIRD CONGRESS FIRST SESSION ON S. 2519 TO AMEND THE SECURITIES EXCHANGE ACT OF 1934 TO 38 1 as it may deem material, determines that the specific grounds 2 on which such denial or prohibition or limitation is based 3 exist in fact, that such denial or prohibition or limitation is 4 consistent with the rules of self-regulatory organization, and 5 that such rules have not been applied so as to discriminate 6 unfairly against such applicant or customer or issuer or to 7 impose burdens on competition not reasonably necessary for 8 the achievement of the purposes of this title, it shall, by 9 order, dismiss the proceeding. In the absence of such a 10 determination, the Commission shall, by order, set aside the 11 action of the self-regulatory organization and require it to 12 admit the applicant to membership or permit the customer 13 or issuer the requested access to services offered by the self14 regulatory organization or member thereof." 15 17 SEC. 19. Section 21 (f) of the Securities Exchange Act 16 of 1934 (15 U.S.C. 78u (f)) is amended to read as follows: "(f) Upon application of the Commission the district 18 courts of the United States, the United States District Court 19 for the District of Columbia, and the United States courts of 20 any territory or other place subject to the jurisdiction of the United States, shall also have jurisdiction to issue writs of 22 mandamus or injunctions commanding any person to comply 23 with the provisions of this title and the rules and regulations 24 thereunder or any order of the Commission made in pursuance thereof or with any undertaking contained in a regis 21 Ray Garrett, Jr., Chairman, Securities and Exchange Commission; Jerome M. Pustilnik, president, Institutional Networks Corp.; accompanied TUESDAY, NOVEMBER 13 James J. Needham, chairman, Board of Directors, New York Stock Exchange; accompanied by Donald L. Calvin, vice president, and Dr. William C. Freund, vice president and chief economist Paul Kolton, chairman of the board, American Stock Exchange; accom- John C. Whitehead, chairman of the board, Securities Industry Association; WEDNESDAY, NOVEMBER 14 48 135 146 165 518 571 577 Donald Weeden, chairman of the board, Weeden & Co---- 587 597 Elkins Wetherill, president, Philadelphia-Washington-Baltimore Stock 616 622 ADDITIONAL STATEMENTS AND DATA American Insurance Association, exchange of letters with Senator 584 American Stock Exchange, supplementary memorandum of comments on 535 AutEx, Inc., subsequent letters answering written questions of: Senator Brooke---. 631 Senator Williams--. 629 Bunker Ramo Corp., letter received from R. J. Moore, president, information products division_-_ 740 GTE Information Systems, letter received from Jay M. Rosen, vice president and general counsel.... 736 Institution Networks Corp., subsequent letter received for the record__ 162 (III) 40 1 2 The Commission shall not promulgate any such rule or regu lation which would impose a burden on competition not 3 reasonably necessary for the achievement of the purposes of this title. The Commission shall include in the notice of any 4 5 8 9 10 such proposed rule or regulation and in the statement of basis 6 and purpose published upon the adoption of any such rule or 7 regulation, a full explanation of the reasons for the Commission's determination that any burden on competition imposed by such rule or regulation is reasonably necessary for the achievement of the purposes of this title. In making rules 11 and regulations pursuant to any authority under this title, the Commission shall make available for public inspection 13 copies of any correspondence between the Commission or 14 its staff and any interested person relating to the proposed 15 rule or regulation. 12 16 "(b) The Commission and the Board of Governors of 17 the Federal Reserve System, respectively, shall include in 18 their annual reports to Congress such information, data, and 19 recommendations for further legislation as they may deem 20 advisable with regard to matters within their respective jurisdictions under this title. The Commission shall also include in its annual report to the Congress for each fiscal year (1) a summary of the Commission's oversight activities with re 21 22 2 2 2 * 23 24 spect to the self-regulatory organizations, including a descrip25 tion of any examination of any such organization, any recom |