Release No. 34-7406

August 28, 1964

Adoption of Rule 0-8

As part of its program of implementing the Securities Acts Amendments of 1964 (Amendments Act), the Securities and Exchange Commission today announced the adoption of Rule 0-8 under the Securities Exchange Act of 1934 (Exchange Act). The new rule is to be effective immediately.

Section 15(b)(4) of the Exchange Act, as amended, now provides that any section of the Exchange Act (other than Section 5 and subsection (a) of Section 15) which prohibits any act, practice or course of business if the mails or any means or instrumentality of interstate commerce are used in connection therewith, shall also prohibit any such act, practice, or course of business, by any broker or dealer registered under Section 15(b) or by any person acting on behalf of such a broker or dealer, irrespective of any use of the mails or interstate facilities.

Rule 0-8 is designed to implement these provisions of Section 15(b)(4) of the Exchange Act, as amended.

The text of the Commission's action follows:

Statutory Basis

The Commission, acting pursuant to the Securities Exchange Act of 1934, and particularly Section 23(a) thereof, and deeming it necessary for the execution of the functions vested in it, and necessary and appropriate in the public interest and for the protection of investors, hereby adopts Rule 0-8, as set forth below.  The Commission finds that the provisions of subsection 4(a), 4(b) and 4(c) of the Administrative Procedure Act are inapplicable and that notice and procedures pursuant thereto would be impracticable for the reason that the new rule is adopted to conform the existing rules to the provisions of the Exchange Act, as amended by the Amendments Act, and merely implements a statutory requirement effected by the Amendments Act.  The new rule is to be effective August 28, 1964.

The text of the new rule follows:

[Text of rule admitted]

By the Commission.