1376 



74th congress. SESS. II. CH. 462. MAY 27, 1936. 



Exceptions. 



Publication of trans- 

 actions or quotations: 

 dilTerentiation between 

 listed and unlisted se- 

 curities. 



Other than by ticlcer. 



Suspension of privi- 

 leges when in public 

 interest, etc. 



Termination of privi- 

 leges; notice and hear- 

 ing. 



Withdrawal of secur- 

 ity by issuer; e.xception. 



Inadequate distribu- 

 tion, trading activity, 

 etc. 



Notice, hearing, etc. 



duties svibstantially equivalent to the duties which would arise pur- 

 suant to this title if such security were duly listed and registered on 

 a national securities exchange ; except that such terms and conditions 

 need not be imposed in any case or class of cases in which it shall 

 appear to the Commission that the public interest and the protection 

 of investors would nevertheless best be served by such extension of 

 unlisted trading privileges. In the publication or making available 

 for publication by any national securities exchange, or by any pei'son 

 directly or indirectly controlled bj^ such exchange, of quotations or 

 transactions in securities made or effected upon such excliange, such 

 exchange or controlled person shall clearly differentiate between 

 quotations or transactions in listed securities, and quotations or 

 transactions in securities for which unlisted trading privileges on 

 such exchange have been continued or extended pursuant to this sub- 

 section. In the publication or making available for publication of 

 such quotations or transactions otherwise than by ticker, such 

 exchange or controlled person shall group under separate headings 

 (A) quotations or transactions in listed securities, and (B) quota- 

 tions or transactions in securities for which unlisted trading priv- 

 ileges on such exchange has been continued or extended pursuant to 

 this subsection. 



"The Commission shall by rules and regulations suspend unlisted 

 trading privileges in whole or in part for any or all classes of 

 securities for a period not exceeding twelve months, if it deems such 

 suspension necessary or appropriate in the jjublic interest or for 

 the protection of investors or to prevent evasion of the purposes 

 of this title. 



"Unlisted trading privileges continued for any security pursuant 

 to clause (1) of this subsection shall be terminated by order, after 

 appropriate notice and opportunity for hearing, if it appears at 

 any time that such security has been withdrawn from listing on 

 any exchange by the issuer thereof, unless it shall be established to 

 the satisfaction of the Commission that such delisting was not 

 designed to evade the purposes of this title or unless it shall appear 

 to the Commission that, notwithstanding any such purpose of evasion, 

 the continuation of such unlisted trading privileges is nevertheless 

 necessai-y or appropriate in the public interest or for the protection 

 of investors. On the application of the issuer of any security for 

 which unlisted trading privileges on any exchange have been con- 

 tinued or extended pursuant to this subsection, or of any broker or 

 dealer who makes or creates a market for such security, or of any 

 other person having a bona-fide interest in the question of termina- 

 tion or suspension of such unlisted trading privileges, or on its own 

 motion, the Commission shall by order terminate, or suspend for a 

 period not exceeding twelve months, such unlisted trading privileges 

 for such security if the Commission finds, after appropriate notice 

 and opportunity for hearing, that by reason of inadequate public 

 distribution of such security in the vicinity of said exchange, or by 

 reason of inadequate public trading activity or of the character 

 of trading therein on said exchange, such termination or suspension 

 is necessary or appropriate in the public interest or for the protection 

 of investors. 



"In any proceeding under this subsection in which appropriate 

 notice and opportunity for hearing are required, notice of not less 

 than ten days to the applicant in such proceeding, to the issuer of 

 the security involved, to the exchange which is seeking to continue 

 or extend or has continued or extended unlisted trading privileges for 

 such security, and to the exchange, if any, on wliich such security 

 is listed and registered, shall be deemed adequate notice, and any 

 broker or dealer who makes or creates a market for such security, 



