PUBLIC LAW 103-202—DEC. 17, 1993 107 STAT. 2349 (b) FRAUDULENT AND MANIPULATIVE DEVICES AND CONTRI- VANCES.—Section 15(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 780(c)(1)) is amended— (1) by inserting "(A)" after "(c)(1); (2) by striking "contrivance, and no municipal securities dealer" and inseri^ing the following: "contrivance. "(B) No municipal securities dealer"; (3) by strUdng "contrivance. The Commission shall" and inserting the following: "contrivance. "(C) No government securities broker or government securities dealer shall make use of the mails or any means or instrumentality of interstate commerce to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any government security by means of any manipulative, deceptive, or other fraudulent device or contrivance. "(D) The Commission shall"; and (4) by adding at the end the following: "(E) The Commission shall, prior to adopting any rule or regulation under subparagraph (C), consult with and consider the views of the Secretary of the Treasury and each appropriate regulatory agency. If the Secretary of the Treasury or any appropriate regulatory agency comments in writing on a proposed rule or regulation of the Commission under such subparagraph (C) that has been published for comment, the Commission shall respond in writing to such written comment before adopting the proposed rule. If the Secretary of the Treasury determines, and notifies the Commission, that such rule or regulation, if implemented, would, or as applied does (i) adversely affect the liquidity or efficiency of the market for government securities; or (ii) impose any burden on competition not necessary or appropriate in furtherance of the purposes of this section, the Commission shall, prior to adopting the proposed rule or regulation, find that such rule or regulation is necessary and appropriate in furtherance of the purooses of this section notwithstanding the Secretary's determination.. SEC. 106. SALES PRACTICE RULEMAKING AUTHORITY. (a) RULES FOR FINANCIAL INSTITUTIONS.— Section 15C(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-5(b)) is amended— (1) by redesignating paragraphs (3), (4), (5), and (6) as paragraphs (4), (5), (6), and (7), respectively; and (2) by inserting jafter paragraph (2) the following new paragraph: "(3)(A) With respect to any financial institution that has filed notice as a government securities broker or government securities dealer or that is required to file notice under subsection (a)(1)(B), the appropriate regulatory agency for such government securities broker or government securities dealer may issue such rules and regulations with respect to transactions in government securities as may be necessary to prevent fraudulent and manipulative acts and practices and to promote just and equitable principles of trade. If the Secretary of the Treasury determines, and notifies the appropriate regulatory agency, that such rule or regulation, if implemented, would, or as appHed does (i) adversely sifFect the liquidity or efficiency of the market for government securities; or (ii) impose any burden on competition not necessary or appropriate in further-
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