SEC Adopts New Rules That Will Require More Market Participants to Register as Dealers
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Elizabeth Mitchell,
Bruce Newman,
Stephanie Nicolas,
Andre Owens,
Timothy Silva,
Tiffany Smith,
Joseph Toner,
Andy Reynolds,
Kyle Swan,
Joshua Nathanson
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2.26.2024
On February 6, 2024, by a vote of 3-2 along party lines, the Securities and Exchange Commission adopted Rules 3a5-4 and 3a44-2 under the Securities Exchange Act of 1934, which will significantly expand the definitions of “dealer” and “government securities dealer” to cover additional market participants engaged in liquidity-providing activities, what the staff refers to as “pro forma” market makers.
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