Title 15, Commerce and TradeRelease 119-102
§78e Transactions on Unregistered Exchanges
Title 15 › CHAPTER 2B — SECURITIES EXCHANGES › § 78e
Summary
Brokers, dealers, and exchanges must not use the mail or interstate commerce to make or report trades on an exchange unless that exchange is registered as a national securities exchange. An exchange can instead get an exemption from the Securities and Exchange Commission if the Commission finds its trading volume is very small and registration is not needed for investor protection or the public interest.
Full Legal Text
Title 15, §78e
Commerce and Trade, Source: USLM XML via OLRC
It shall be unlawful for any broker, dealer, or exchange, directly or indirectly, to make use of the mails or any means or instrumentality of interstate commerce for the purpose of using any facility of an exchange within or subject to the jurisdiction of the United States to effect any transaction in a security, or to report any such transaction, unless such exchange (1) is registered as national securities exchange under section 78f of this title, or (2) is exempted from such registration upon application by the exchange because, in the opinion of the Commission, by reason of the limited volume of transactions effected on such exchange, it is not practicable and not necessary or appropriate in the public interest or for the protection of investors to require such registration.
Legislative History
Notes & Related Subsidiaries
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. § 78e
Title 15, Commerce and Trade
Last Updated
Aug 21, 2026
Release point: 119-102