1074 PUBLIC LAWS-CH. 677-JUNE 25, 1938 [52 STAT. "Nonmember bro- "(2) For the purposes of this subsection, the term 'nonmember ker or dealer" con- strued. broker or dealer' shall include any broker or dealer who makes use of the mails or of any means or instrumentality of interstate commerce to effect any transaction in, or to induce the purchase or sale of, any security otherwise than on a national securities exchange, who is not a member of any registered securities association, except a broker or dealer who deals exclusively in commercial paper, bankers' accept- ances, or commercial bills. Dealer's discount, "(3) Nothing in this subsection shall be so construed or applied as to prevent any member of a registered securities association from granting to any other member of any registered securities association any dealer's discount, allowance, commission, or special terms. Changes in or addi- () Every registered securities association shall file with the Com- tions to association's rules to be filed with mission in accordance with such rules and regulations as the Commis- Conmissi on . sion may prescribe as necessary or appropriate in the public interest or for the protection of investors, copies of any changes in or addi- tions to the rules of the association, and such other information and documents as the Commission may require to keep current or to sup- plement the registration statement and documents filed pursuant to When effective. subsection (a). Any change in or addition to the rules of a regis- tered securities association shall take effect upon the thirtieth day after the filing of a copy thereof with the Commission, or upon such earlier date as the Commission may determine, unless the Commission shall enter an order disapproving such change or addition; and the Commission shall enter such an order unless such change or addition appears to the Commission to be consistent with the requirements of subsection (b) and subsection (d). Authorty of m- "(k) (1) The Commission is authorized by order to abrogate any mission to abrogate rules, rule of a registered securities association, if after appropriate notice and opportunity for hearing, it appears to the Commission that such abrogation is necessary or appropriate to assure fair dealing by the members of such association, to assure a fair representation of its members in the administration of its affairs or otherwise to protect investors or effectuate the purposes of this title. Alterations of or " (2) The Commission may in writing request any registered secu- supplements to asso- cation's rules. rities association to adopt any specified alteration of or supplement to its rules with respect to any of the matters hereinafter enumerated. If such association fails to adopt such alteration or supplement within a reasonable time, the Commission is authorized by order to alter or supplement the rules of such association in the manner theretofore requested if after appropriate notice and opportunity for hearing, it appears to tle Commission that such alteration or supplement is neces- sary or appropriate in the public interest or for the protection of investors or to effectuate the purposes of this section, with respect to: (1) The basis for, and procedure in connection with, the denial of membership or the disciplining of members; (2) the method for adop- tion of any change in or addition to the rules of the association; (3) the method of choosing officers and directors; and (4) affiliation between registered securities associations. Powers of Commis- (1) The Commission is authorized, if such action appears to it to be necessary or appropriate in the public interest or for the protection of investors or to carry out the purposes of this section- Suspension or revo- "(1) after appropriate notice and opportunity for hearing, cation of registration tee of a registered securi- by order to suspend for a period not exceeding twelve months ties association. or to revoke the registration of a registered securities association, if the Commission finds that such association has violated any provision of this title or any rule or regulation thereunder, or has failed to enforce compliance with its own rules, or has engaged in any other activity tending to defeat the purposes of this section;
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