What is a Broker-Dealer? - Davis Polk & Wardwell
What is a Broker-Dealer? - Davis Polk & Wardwell
What is a Broker-Dealer? - Davis Polk & Wardwell
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BROKER-DEALER REGULATION<br />
[B][1] Private Placement Agents<br />
[B][2] M&A Adv<strong>is</strong>ers<br />
[B][3] Business <strong>Broker</strong>s<br />
[C] Networking Arrangements<br />
[C][1] Banks<br />
[C][2] Insurance<br />
[D] Issuers and Their Associated Persons<br />
[D][1] Issuers<br />
[D][2] Associated Persons of Issuers<br />
[D][3] Issuers and Associated Persons in<br />
Demutualizations, Exchange Offers, Conversions,<br />
Proxy Solicitations<br />
[E] Bulletin Boards<br />
[F] ATSs and Securities Exchanges<br />
[G] Payroll Processing Services<br />
[H] Personal Service Companies<br />
[I] Other Service Providers to the Securities Industry,<br />
<strong>Broker</strong>-<strong>Dealer</strong>s or Issuers<br />
[I][1] Communications Services<br />
[I][2] Confirmation and Other Processors<br />
[I][3] Transfer Agents and Stock Plan Services<br />
[I][4] Research Services<br />
[I][5] Accountants<br />
[J] Investment Adv<strong>is</strong>ers<br />
§ 1A:3 <strong>What</strong> Is a <strong>Dealer</strong>?<br />
§ 1A:3.1 Section 3(a)(5)(A)<br />
[A] Generally<br />
[B] Buying and Selling Securities for Own Account<br />
[C] Engaged in the Business<br />
§ 1A:3.2 “Traders” versus “<strong>Dealer</strong>s”—Section 3(a)(5)(B)<br />
[A] Generally<br />
[B] Funds As Traders<br />
[C] Issuers<br />
[D] <strong>Dealer</strong>s in OTC Derivatives<br />
§ 1A:4 <strong>What</strong> Is a Security?<br />
§ 1A:4.1 Statutory Definition<br />
§ 1A:4.2 Case Law on “Investment Contracts”<br />
[A] Generally<br />
[B] Investment of Money<br />
[C] Common Enterpr<strong>is</strong>e<br />
[D] Expectation of Profits<br />
[E] Solely from the Efforts of the Promoter or a Third Party<br />
§ 1A:4.3 Case Law on “Notes”<br />
§ 1A:4.4 OTC Derivatives<br />
[A] Case Law on Derivatives Prior to the Adoption of the<br />
Commodity Futures Modernization Act<br />
[B] CFMA—Section 3A, 15(i)<br />
1A–2