National Securities Market System Act

(LATEST SUMMARY)

National Securities Market System Act - Defines terms used in the Securities Exchange Act, including the terms "members" when used with respect to a self-regulatory organization and "securities information processor".

Provides that any exchange may be registered as a national securities exchange by filing with the Commission a registration statement setting forth specified information, and accompanied by enumerated documents.

States that an exchange shall not be registered as a national securities exchange unless it appears to the Commission that specified criteria are met, including: (1) such exchange is able to comply with and to enforce compliance by its members with the provisions of this title; (2) the rules of the exchange assure a fair representation of its members; (3) the rules of the exchange provide for the equitable allocation of dues and other charges among its members; and (4) the rules of the exhange are designed to prevent fraudulent and manipulative acts and practices.

Makes it unlawful for any securities information processor, unless registered, to make use of the mails or any means of interstate commerce to perform the functions of a securities information processor with respect to any security. Prescribes the procedure for registration of securities information processors.

Empowers the Commission to censure or place limitations upon the activities of any registered securities information processor or suspend or revoke the registration of any such processor.

Directs the Commission to prescribe such rules as it deems in the public interest or for the protection of investors: (1) to assure that accurate quotations in all securities are available to all registered brokers and dealers and all other persons; (2) to specify the methods and manner in which information with respect to quotations and transactions is distributed and published; (3) to provide for the fair and reasonable allocation of the costs, functions, and responsibilities associated with the collection and publication of quotations and transactions, and the development of a national market system; and (4) to assure that any system utilized by any broker or dealer to transmit or direct orders for the purchase or sale of securities to a facility for execution operates in a manner consistent with the development and operation of a national market system.

Prescribes the procedures, regulations and requirements governing the registration of an association as a national or affiliated securities association. States that with respect to any person who is a member of more than one self-regulatory organization, the Commission shall allocate among such self-regulatory ogranizations responsibility to examine such person for compliance with applicable provisions of this title, the rules and regulation thereunder, and the rules of the self-regulatory organizations of which it is a member, and to receive regulatory reports and to carry out other specified regulatory functions with respect to such person.

Outlines the powers of the Commission in overseeing self-regulatory organizations. Requires the Commission to publish in the Federal Register any proposed rule together with its reasons for proposing to abrogate, alter, or supplement the rules of a self-regulatory organization.

Sets forth the Commission's powers with respect to any disciplinary action taken by a self-regulatory organization against a member or a person associated with a member.

States that the Commission and the Board of Governors of the Federal Reserve System shall each have power to make such rules and regulations as may be necessary for the execution of the functions vested in them by this Act.

Requires the Commission and the Board of Governors of the Federal Reserve System, respectively, to include in their annual reports to Congress such information, data, and recommendations for further legislation as they deem advisable with regard to matters within their respective jurisdictions under this Act.

Provides that any person adversely affected by a rule may obtain review in the Court of Appeals of the United States for the circuit in which he resides or in the United States Court of Appeals for the District of Columbia.

Sets forth the effective date of this Act.