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Title 15, Commerce and TradeRelease 119-110

§78dd Foreign Securities Exchanges

Title 15 › CHAPTER 2B — SECURITIES EXCHANGES › § 78dd

Last updated Sep 22, 2026|Official source

Summary

Brokers and dealers must not use U.S. mail or other interstate ways to make trades on foreign exchanges in securities of companies that are U.S. residents, organized under U.S. law, or have their main business in the U.S., if those trades break rules the Securities and Exchange Commission (SEC) makes to protect investors or to stop people from dodging the law. People who do securities business entirely outside U.S. jurisdiction are generally not covered by these rules, unless they break SEC rules meant to prevent evasion. Rules added by the Wall Street Transparency and Accountability Act of 2010 do not apply to security-based swaps done outside U.S. jurisdiction unless those anti-evasion rules are violated. That does not reduce the SEC’s powers as they existed before July 21, 2010.

Full Legal Text

Title 15, §78dd

Commerce and Trade, Source: USLM XML via OLRC

(a)Unlawful transactions on foreign securities exchanges
It shall be unlawful for any broker or dealer, directly or indirectly, to make use of the mails or of any means or instrumentality of interstate commerce for the purpose of effecting on an exchange not within or subject to the jurisdiction of the United States, any transaction in any security the issuer of which is a resident of, or is organized under the laws of, or has its principal place of business in, a place within or subject to the jurisdiction of the United States, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors or to prevent the evasion of this chapter.
(b)Business without the jurisdiction of the United States
The provisions of this chapter or of any rule or regulation thereunder shall not apply to any person insofar as he transacts a business in securities without the jurisdiction of the United States, unless he transacts such business in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate to prevent the evasion of this chapter.
(c)Rule of construction
No provision of this chapter that was added by the Wall Street Transparency and Accountability Act of 2010, or any rule or regulation thereunder, shall apply to any person insofar as such person transacts a business in security-based swaps without the jurisdiction of the United States, unless such person transacts such business in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate to prevent the evasion of any provision of this chapter that was added by the Wall Street Transparency and Accountability Act of 2010. This subsection shall not be construed to limit the jurisdiction of the Commission under any provision of this chapter, as in effect prior to July 21, 2010.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this title”. See

References in Text

note set out under section 78a of this title. The Wall Street Transparency and Accountability Act of 2010, referred to in subsec. (c), is title VII of Pub. L. 111–203, July 21, 2010, 124 Stat. 1641, which enacted chapter 109 (§ 8301 et seq.) of this title and enacted and amended numerous other sections and notes in the Code. For complete classification of this Act to the Code, see

Short Title

note set out under section 8301 of this title and Tables.

Amendments

2010—Subsec. (c). Pub. L. 111–203 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle B (§§ 761–774) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle B, see section 774 of Pub. L. 111–203, set out as a note under section 77b of this title.

Executive Documents

Transfer of Functions

For

Transfer of Functions

of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 78dd

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110