3 1 SEC. 4. Section (3) (a) of the Securities Exchange Act 2 3 4 of 1934 (15 U.S.C. 78c (a)) is amended by adding at the end thereof the following new paragraphs: "(22) The term 'securities information processor' means 5 any person engaged in the business of (A) collecting, processing, or preparing for distribution or publication, or assist7 ing, participating in, or coordinating the distribution or pub 6 8 lication of information with respect to transactions in any 9 security or bids and offers for or indications of interest to pur10 chase or sell any security (which bids and offers and indica11 tions of interest are hereinafter collectively referred to as 12 'quotations'), or (B) distributing or publishing (whether by 13 means of a ticker tape, a communications network, a terminal 14 display device, or otherwise) on a current and continuing 15 basis information with respect to such transactions or quota16 tions. The term 'securities information processor' does not 17 include any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, any 19 common carrier subject to the jurisdiction of the Federal 20 Communications Commission or a State commission as de21 fined in section 3 (f) of the Communications Act of 1934, 22 any national securities exchange, or any registered securities 23 association. 18 920 24 "(23) The term 'self-regulatory organization' means a 6 formation processors, and other persons engaged in regulating, clearing, settling, transferring, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a national market system, and, in general, to protect investors and the public interest; and are not designed to permit unfair discrimination between or among customers or issuers or brokers or dealers, to fix minimum profits, to regulate matters not related to the protection of investors, or to impose any burden on competition not reasonably necessary to achieve the purposes this title; "(5) the rules of the exchange provide that its members and persons associated with its members shall be appropriately disciplined for violation of any provision of this title, the rules or regulations thereunder, or the rules of the exchange, by expulsion, suspension, limitation of activities, functions, and operations, fine, or censure, and in the case of a person associated with a member by being suspended or barred from being associated with any member; and "(6) the rules of the exchange provide a fair and orderly procedure with respect to the disciplining of members and persons associated with members, the denial of membership to any broker or dealer seeking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 7 membership therein, and the prohibition or limitation of any customer or issuer with respect to requested access to services offered by the exchange or any mem ber thereof. In any proceeding to determine whether a broker or dealer shall be denied membership or whether a customer or issuer shall be prohibited or limited with respect to requested access to services offered by the exchange or any member thereof, such rules shall, as a minimum, provide that the broker or dealer or customer or issuer shall be notified of, and be given an op portunity to be heard upon, the specific grounds for denial or prohibition or limitation which are under consideration; that a record shall be kept; and that the determination shall set forth the specific grounds upon which the denial or prohibition or limitation is based. "(c) The Commission shall, upon the filing of an appli17 cation for registration as a national securities exchange pur18 suant to subsection (a), publish notice of the filing and 19 afford interested persons a reasonable opportunity for com20 ment. Within ninety days of such filing, the Commission "(1) by order grant such registration if the Com mission finds that the requirements of this section are satisfied, or 6 formation processors, and other persons engaged in regulating, clearing, settling, transferring, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a national market system, and, in general, to protect investors and the public interest; and are not designed to permit unfair discrimination between or among customers or issuers or brokers or dealers, to fix minimum profits, to regulate matters not related to the protection of investors, or to impose any burden on competition not reasonably necessary to achieve the purposes this title; "(5) the rules of the exchange provide that its members and persons associated with its members shall be appropriately disciplined for violation of any provision of this title, the rules or regulations thereunder, or the rules of the exchange, by expulsion, suspension, limitation of activities, functions, and operations, fine, or censure, and in the case of a person associated with a member by being suspended or barred from being associated with any member; and "(6) the rules of the exchange provide a fair and orderly procedure with respect to the disciplining of members and persons associated with members, the denial of membership to any broker or dealer seeking 9 1 and as such to buy and sell for his own account so far as may 2 be reasonably necessary to carry on such odd-lot transactions, 3 and (2) a member to be registered as a specialist. If un4 der the rules and regulations of the Commission a specialist is 5 permitted to act as a dealer, or is limited to acting as a dealer, such rules and regulations shall restrict his dealings 6 7 on the exchange so far as practicable to those reasonably 8 necessary to permit him to maintain a fair and orderly market 9 10 11 and to those necessary to permit him to act as an odd-lot dealer if the rules of the exchange permit him to act as an odd-lot dealer. It shall be unlawful for a specialist or an offi12 cial of the exchange to disclose information in regard to 13 orders placed with such specialist which is not available to all members of the exchange, to any person other than an 15 official of the exchange, a representative of the Commission, or specialist who may be acting for such specialist: Pro17 vided, however, That the Commission, by rule, may require 14 16 18 19 or permit disclosure of any limited price order placed with a specialist to such other specialists, such dealers, such brokers, 20 and such other persons as it deems necessary or appropriate 21 in the public interest or for the protection of investors to 22 maintain fair and orderly markets or to remove impediments 23 to and perfect the mechanism of a national market system. It shall also be unlawful for a specialist acting as a broker to 24 |