It shall be unlawful for any
person, directly or indirectly, by the use of any means or instrumentality
of interstate commerce or of the mails, or of any facility of any
national securities exchange—
(a) (1) To effect a short sale, or
to use or employ any stop-loss order in connection with the purchase
or sale, of any security other than a government security 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.
(2) Paragraph (1) of
this subsection shall not apply to security futures products.
(b) To use or employ, in connection with the purchase
or sale of any security registered on a national securities exchange
or any security not so registered or any securities-based swap agreement,
any manipulative or deceptive device or contrivance 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.
Rules promulgated under subsection (b) that prohibit
fraud, manipulation, or insider trading (but not rules imposing or
specifying reporting or recordkeeping requirements, procedures, or
standards as prophylactic measures against fraud, manipulation, or
insider trading), and judicial precedents decided under subsection
(b) and rules promulgated thereunder that prohibit fraud, manipulation,
or insider trading, shall apply to security-based swap agreements
to the same extent as they apply to securities. Judicial precedents
decided under section 17(a) of the Securities Act of 1933 and sections
9, 15, 16, 20, and 21A of this title, and judicial precedents decided
under applicable rules promulgated under such sections, shall apply
to security-based swap agreements to the same extent as they apply
to securities.
(c) (1) To effect, accept, or facilitate
a transaction involving the loan or borrowing of securities 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.
(2) Nothing in paragraph
(1) may be construed to limit the authority of the appropriate Federal
banking agency (as defined in section 3(q) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q))), the National Credit Union Administration,
or any other Federal department or agency having a responsibility under
Federal law to prescribe rules or regulations restricting transactions
involving the loan or borrowing of securities in order to protect
the safety and soundness of a financial institution or to protect
the financial system from systemic risk.
[15 USC 78j. As amended
by acts of Dec. 21, 2000 (114 Stat. 2763A-432, 454) and July 21, 2010
(124 Stat. 1761, 1932).]
