What is a Broker-Dealer?
Chapter 2

Created date


Broker-Dealer Reg., Rel. #10, 9/16, PLI


The Securities Exchange Act of 1934 (the “Exchange Act”) is the primary federal legislation governing “brokers” and “dealers” in securities. With certain exceptions, section 15 of the Exchange Act requires registration with the Securities and Exchange Commission (SEC) of all broker-dealers using interstate commerce or the facilities of any national securities exchange to effect transactions in securities (other than exempted securities and certain short-term debt instruments). The Exchange Act, rules of the SEC thereunder, and the rules of selfregulatory organizations (SROs) prescribe an extensive scheme of regulation for broker-dealers. Certain Exchange Act provisions and implementing rules apply to all broker dealers, whether or not registered, whereas others only apply to those registered with the SEC (“Registered Broker-Dealers”).

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