SEC Pursues ‘Dealer’ Definition Expansion, to Industry’s Dismay

The Securities and Exchange Commission is finalizing a rule that, as proposed, would clarify and expand the definition to include some financial firms—such as high-frequency traders—that have traditionally not been considered a dealer.

Industry advocates say the agency also is using recent lawsuits against penny-stock flippers to go further than it’s likely to do in its rulemaking—to stake out the position that a “dealer” is any company whose business model is based on buying and selling securities.

Source: SEC Pursues ‘Dealer’ Definition Expansion, to Industry’s Dismay