Section 240.15b9-1 - Exemption for certain exchange membersAny broker or dealer required by section 15(b)(8) of the Act (15 U.S.C. 78 o (b)(8)) to become a member of a registered national securities association shall be exempt from such requirement if it:
(a) Is a member of a national securities exchange;(b) Carries no customer accounts; and(c) Effects transactions in securities solely on a national securities exchange of which it is a member, except that with respect to this paragraph (c): (1) A broker or dealer may effect transactions in securities otherwise than on a national securities exchange of which the broker or dealer is a member that result solely from orders that are routed by a national securities exchange of which the broker or dealer is a member to comply with § 242.611 of this chapter or the Options Order Protection and Locked/Crossed Market Plan; or(2) A broker or dealer may effect transactions in securities otherwise than on a national securities exchange of which the broker or dealer is a member, with or through another registered broker or dealer, that are solely for the purpose of executing the stock leg of a stock-option order. A broker or dealer seeking to rely on this exception shall establish, maintain and enforce written policies and procedures reasonably designed to ensure and demonstrate that such transactions are solely for the purpose of executing the stock leg of a stock-option order. Such broker or dealer shall preserve a copy of its policies and procedures in a manner consistent with § 240.17a-4 until three years after the date the policies and procedures are replaced with updated policies and procedures.48 FR 53691, Nov. 29, 1983, as amended at 70 FR 37618 , June 29, 2005