SEC Rules for Broker Dealer Exchange Specialists

Securities and Exchange Commission rules regulate information that must be provided to the public by broker dealers who serve as New York, American, or other national exchange specialists or as Nasdaq market makers. Such broker dealers in effect trade for their own accounts as well as for customers. They thus are required to follow Commission Rules 11Ac1-1 and 11Ac1-4 under the Securities Exchange Act of 1934, 17 CFR 240.11Ac1-1 and 17 CFR 240.11Ac1-4, designed to increase the amount of public information regarding quotes and order handling.

DIRECTOR'S DUTY OF LOYALTY

AN OVERVIEW

Enhanced Antitrust Criminal Penalty and Leniency Provisions

The Antitrust Criminal Penalty Enhancement and Reform Act of 2004, signed into law on June 22, 2004, as part of H.R. 1086, increased penalties for violations of the Sherman Act while increasing incentives for participation in the leniency program of the U.S. Department of Justice.

Blue Sky or State Securities Laws

Regulation of the securities industry by the Securities and Exchange Commission and by self-regulatory organizations such as the national stock exchanges is well known. However, in addition to such regulation, each state provides its own securities laws and rules that sellers of securities in the states must follow.