SEC Proposes Exchange Act Revisions Affecting Foreign Broker-Dealers

The U.S. Securities and Exchange Commission (SEC) has, at long last, made good on its promise to propose extensive revisions updating and expanding Rule 15a-6 under the Securities Exchange Act of 1934 (Exchange Act), which permits foreign broker-dealers to do limited business in the United States without registering as a broker-dealer. The proposing release was issued by the SEC on June 27, 2008 (Securities Exchange Act Release No. 58047, referred to hereinafter as the "Proposing Release") and comments are due 60 days following publication of the Proposing Release in the Federal Register, which is expected to occur this week.

The SEC and its staff discussed the proposed amendments at an open meeting on June 25, 2008. The director of the Division of Trading and Markets, Erik Sirri, stated that the proposed amendments to Rule 15a-6 (Proposed Rule) are intended to address those parts of Rule 15a-6 that