follows: To register and regulate national securities exchanges; to register securities traded in on such exchanges; regulate over-theanter markets and transactions in registered securities; to regulate embers of exchanges and other persons doing a business in securities through the medium of such exchanges; to secure monthly statements of holdings of registered equity securities by directors, officers, and principal stockholders; and to secure an adequate disclosure of the material facts regarding corporations whose securities are regstered on national securities exchanges through periodical reports of information necessary to keep reasonably current the information given at the time of first registration, and through rules governing the solicitation of proxies. For the purpose of effectuating these provisions, the Commission is vested with broad administrative powers to promulgate rules and regulations and is empowered to enforce these regulations.

FUNCTIONS OF THE DIVISIONS

For the sake of efficient administration, the Commission has estab-
lished several divisions and offices and distributed certain functions
and activities to each as follows:

The Legal Division, under the supervision of the General Counsel,
has charge of legal matters involved in the administration and
enforcement of the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, which include (1) the rendering of
opinions and advice to the Commission on general questions of law
arising in connection with the administration and enforcement of the
acts; (2) the preparation for submission to the Commission of orders,
rules, regulations, and forms in collaboration, where appropriate,
with other divisions of the Commission; (3) the rendering of opinions
in response to inquiries submitted to the Commission involving prob-
lems of interpretation of the acts and of rules, regulations, or forms
promulgated by the Commission; (4) the conduct of hearings before
the Commission, or an officer of the Commission, other than refusal-
order or stop-order proceedings under section 8 (b) and (d) of the
Securities Act of 1933, which are conducted by the Registration Divi-
sion; (5) investigation of complaints and alleged violations of the
acts; (6) representation of the Commission in all judicial proceed-
ings, including proceedings to enjoin violations of law and proceed-
ings for the review of orders of the Commission; (7) research inci-
dent to the formulation of legal opinions, and the representation of
the Commission in administrative or judicial proceedings; (8) the
preparation of cases for transmission to the Department of Justice
for criminal prosecution; and (9) collaboration with other divisions

1

of the Commission in the preparation of reports to Congress under sections 11, 12, 19, and 211 of the Securities Exchange Act.

The Registration Division is responsible for the examination of all registration statements filed pursuant to the Securities Act of 1933 and registration statements covering the listing of securities on national securities exchanges pursuant to section 12 of the Securities Exchange Act of 1931; applications for withdrawal or striking from listing securities listed or registered on national securities exchanges; reports of officers, directors, and owners of equity securities required to be filed under the provisions of section 16 of the Securities Exchange Act of 1934. This includes not only the examination of applications, but also statements and accompanying reports, amendments, documents, appraisals, financial statements, prospectuses, etc.; the preparation of reports and letters of deficiency with respect thereto; the conduct of investigations and hearings for the development of facts and the verification of data submitted in such registration statements, applications, and reports, and hearings in refusalorder and stop-order proceedings under section 8 (b) and (d) of the Securities Act of 1933; the preparation of recommendations to the Commission on the above matters and, after the Commission has acted, the preparation of the Commission orders.

The Trading and Exchange Division has supervision over (1) registration of exchanges as national securities exchanges and exemption of exchanges from registration; (2) the formulation of rules for the regulation of floor trading and the prevention of excessive trading by exchange members; (3) the detection of unlawful practices on exchanges, including wash sales, matched orders, pool operations, and tipping of pool operations, the dissemination of false or misleading information concerning securities and other manipulative or deceptive devices; (4) the formulation of rules for the regulation of pegging, fixing, and stabilizing operations; (5) the formulation of rules for the regulation of puts, calls, straddles, and other options; (6) the formulation of rules for the regulation of short selling and stop-loss orders; (7) the formulation of rules for the regulation of borrowings and hypothecation of customers' securities by exchange members; (8) the registration of securities admitted to unlisted trading privileges; (9) the formulation of rules for the regulation of over-the-counter markets; (10) the detection of fraudulent or manipulative practices in the distribution of securities over the counter; and (11) the registration of brokers and dealers in over-the-counter markets.

The Secretary is the chief administrative officer of the Commission. His duties and responsibilities are threefold, viz, as Secretary, as business manager, and as head of the Administrative Di

son. As Secretary, he is responsible for the administrative, lerical, and fiscal activities of the Commission. These include actons on all allotments and expenditures of appropriations; liaison activities with other Government establishments; signing of all Commission orders, actions, certifications, etc.; and assisting in the ordination of functional activities. The recording secretary, whose duties involve the preparation, maintenance, and indexing of Commission minutes, is responsible to the Secretary. As business anager, the Secretary is responsible for the business-management functions of the Commission and for the preparation of the budget estimates and justifications in support thereof. As head of the Administrative Division, he is responsible for the activities of that vision, which is composed of five sections, viz, Budget and Acunting Section. Docket Mail and Files Section, Service Section, Stenographic Section, and Library Section.

The Director of the Protective Committee Study is charged with The responsibility of conducting investigations and hearings in order 10 assemble data and facts for use in the preparation of the report to Congress required under section 211 of the Securities Exchange Act of 1934, which section provides that "The Commission is authorized and directed to make a study and investigation of the work, activities, personnel, and functions of protective and reorganization committees in connection with the reorganization, readstment, rehabilitation, liquidation, or consolidation of persons and properties, and to report the results of its studies and investigations and its recommendations to the Congress on or before January 3, 1936."

The Technical Adviser to the Commission is responsible for the assembly of industrial statistics, the conduct of studies of the markets for securities of different industries, the analysis of company reports and company statistics, the statistical analysis of registrations ander the Securities Act of 1933, the assembly and maintenance of economic, market, capital, and other statistics, the study of technical phases of marketing and underwriting of securities, the examination and extraction of pertinent information from general and financial publications, and the rendering of technical advice to the Commission and its staff in connection with the above matters and in connection with the conduct of special studies required under the provisions of the Securities Exchange Act of 1934.

The Economic Adviser to the Commission is charged with the responsibility of conducting certain economic studies for use by the Commission in the establishment of general policies and with the rendering of advice regarding the economic aspects of the problems volved in the administration of the Securities Act of 1933 and the

Securities Exchange Act of 1934. The Section on Special Studies is also a part of the office of the Economic Adviser. The functions of this section involve the conduct of research and the drafting of reports for certain studies which Congress has directed the Securities and Exchange Commission to make, and others which the Commission will initiate from time to time in order to facilitate the administration of the Securities Act of 1933 and the Securities Exchange Act of 1934. The conduct of the research and the drafting of the reports will require cooperation with officials assigned to other divisions and coordination of data assembled by the various divisions of the Commission.

The Director of Employment Research is charged with the responsibility of making the preliminary selection of personnel (experts and civil service) and with the conduct of necessary investigations regarding prospective appointees; also with the preparation of appointment notices, pay rolls, transfers, reinstatements, service records, and the handling of promotion, demotion, separation, and classification matters. All matters pertaining to personnel, employment, pay, and correspondence regarding same are handled in this office.

The Regional Supervisor is charged with the administration or the field activities of the Commission. The regional administrator in charge of each regional office has supervision over all investigations and matters referred to his office for action. However, the reports of investigations, memoranda, and correspondence from and to the regional offices are routed via the regional supervisor. This is done for record purposes and in order to coordinate the work, avoid duplication and maintain uniformity of action.

The Supervisor of Information Research is responsible for disseminating public information regarding the activities of the Commission by means of correspondence and releases. The legislation under which the Commission operates specifically directs that publicity be given to its rulings, regulations, opinions, and findings, as well as to the filing of registration statements, the effective registrations, hearings held, and reports and statements filed with the Commission by security issuers, officers, directors, and principal stockholders. This information is made available to the public by the supervisor of information research through releases issued to the press and through mailing lists established for the convenience of those who wish to receive releases currently.

ESTABLISHMENT OF ZONES AND REGIONAL OFFICES

In order to administer more effectively the Securities Act of 1933 and the Securities Exchange Act of 1934, regional offices were estab

lished throughout the country. For this purpose the United States has been divided into eight zones, exclusive of that area which falls under the direct administration of the main office in Washington, D. C.

The various zones are composed of the States, as follows:

A regional office has been established in each of these zones. Each regional office is supervised by a regional administrator, who is responsible for all administration, investigation, and enforcement activities of the Commission within his respective zone.

The names of the regional administrators and the addresses of the regional offices are indicated below:

Zone 1-Robert G. Page, 120 Broadway, New York City, N. Y.

Zone 2-Edmund J. Brandon, 82 Devonshire Street, Boston, Mass.

Zone 3-William Green, Palmer Building, Atlanta, Ga.

Zone 4 Thomas A. Reynolds, 231 South LaSalle Street, Chicago, Ill.
Zone 5 Oran H. Allred, New Federal Building, Fort Worth, Tex.

Zone 6-Foster Cline, Patterson Building, Denver, Colo.

Zone 7-Howard A. Judy, 625 Market Street, San Francisco, Calif.

Zone 8-Day Karr, Room 1407, Exchange Building, 821 Second Avenue, Seattle, Wash,