Market regulation · 07/12/2004

Issuer Restrictions or Prohibitions on Ownership by Securities Intermediaries

The Securities and Exchange Commission is adopting a new rule under the Securities Exchange Act of 1934 that prohibits registered transfer agents from transferring certain equity securities if they are subject to restrictions on transfer to or from securities intermediaries like clearing agencies, banks, or broker-dealers. The rule aims to promote the integrity and efficiency of the U.S. clearance and settlement system.