SIXTH RULE. Successive transactions by members.-No member, and no firm of which he is a partner and no partner of such firm shall execute or cause to be executed on the exchange the purchase of any security at successively higher prices or the sale of any security at successively lower prices for the purpose of creating or inducing a false, misleading or artificial appearance of activity in such security, or for the purpose of unduly or improperly influencing the market price of such security, or for the purpose of making a price which does not reflect the true state of the market in such security.

SEVENTH RULE. Trading by members holding options.— No member, while on the floor, shall initiate the purchase or sale on the exchange for his own account or for any account in which he, or the firm of which he is a partner or any partner of such firm, is directly or indirectly interested, of any security classified for trading as a stock by the exchange, in which he holds or has granted any put, call, straddle, or option, or in which he has knowledge that the firm of which he is a partner or any partner of such firm holds or has granted any put, call, straddle, or option.

EIGHTH RULE. Record of orders.—(a) Every member or the firm of which he is a partner or any partner of such firm shall preserve for at least 12 months a record of every order transmitted by such member, firm, or partner to the floor of the exchange, which record shall include the name, amount, and price of the security and the time when such order was so transmitted.

(b) Every member shall preserve for at least 12 months a record of every order originating on the floor of the exchange given to such member for execution, and of every order originating off the floor, transmitted by any person other than a member, firm, or partner, to such member on the floor, which record shall include the name. amount, and price of the security, and the time when such order was so given or transmitted.

NINTH RULE. Registration of specialists.-No member shall act as a specialist in any security unless such member is registered as a specialist in such security by the exchange.

TENTH RULE. Trading by specialists.-No specialist shall effect on the exchange purchases or sales of any security in which such specialist is registered, for any account in which he, or the firm of which he is a partner, or any partner of such firm, is directly or indirectly interested, unless such dealings are reasonably necessary to permit such specialist to maintain a fair and orderly market, or to act as an odd-lot dealer in such security.

ELEVENTH RULE. Joint accounts of specialists.-No specialist, and no firm of which he is a partner, and no partner of such firm, shall, directly or indirectly, acquire or hold any interest or participation.

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in any joint account for buying or selling on the exchange any security classified for trading by the exchange as a stock in which such specialist is registered, except a joint account with a partner of such specialist, a member of the exchange, or a firm of which a member is a partner.

TWELFTH RULE. Records of specialist.-Every specialist shall keep a legible record of all orders placed with him in the securities in which he is registered as a specialist and of all executions, modifications and cancelations of such orders, and shall preserve such record and all memoranda relating thereto for a period of at least 12 months.

THIRTEENTH RULE. Registration of odd-lot dealers.-No member of the exchange shall act as an odd-lot dealer in a security unless such member is registered as an odd-lot dealer in such security by the exchange.

FOURTEENTH RULE, Joint accounts of odd-lot dealers.-No oddlot dealer, and no firm of which he is a partner, and no partner of such firm, shall, directly or indirectly, acquire or hold any interest or participation in any joint account for buying or selling on the exchange any security in which such odd-lot dealer is registered, except a joint account with a partner of such odd-lot dealer, a member of the exchange, or a firm of which a member is a partner.

FIFTEENTH RULE. Options of specialists and odd-lot dealers.-No specialist or odd-lot dealer, and no firm of which such specialist or odd-lot dealer is a partner and no partner of such firm, shall acquire, hold, or grant, directly or indirectly, any interest in any put, call, straddle, or option in any security classified for trading as a stock by the exchange in which such specialist or odd-lot dealer is registered.

SIXTEENTH RULE. Short selling.-(a) No member shall use any facility of the exchange to effect on the exchange a short sale of any security in the unit of trading at a price below the last sale price of such security on the exchange.

(b) The provisions of this rule shall not apply to any short sale (1) by an odd-lot dealer to offset odd-lot orders of customers, (2) by an odd-lot dealer to liquidate a long position which is less than the unit of trading, provided the net change in the position of such odd-lot dealer after any such short sale is not more than the unit of trading in such security, or (3) by any member, with the approval of the exchange, for the purpose of equalizing the price of a security on the exchange with the price of the same security on another national securities exchange which is the principal market for such security.

APPENDIX II

RULES OF PRACTICE, SECURITIES AND EXCHANGE COMMISSION, EFFECTIVE SEPTEMBER 13, 1935

RULE I

BUSINESS HOURS-REGIONAL OFFICES

The principal office of the Commission at Washington, D. C., is pen on each business day, excepting Saturdays, from 9 a. m. to 4530 p. m., and on Saturdays from 9 a. m. to 1 p. m. Regional offices are maintained at New York, Boston, Atlanta, Chicago, Fort Worth, Denver, San Francisco, and Seattle.

RULE II

APPEARANCE AND PRACTICE BEFORE THE COMMISSION UNDER THE SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934

(a) This rule does not relate to the statements required by section (i) of the Public Utility Act of 1935.

(6) Any individual or member of a partnership which is a party to any proceeding before the Commission may represent himself or such partnership in such proceeding, and a corporation, trust, or asocation may be represented by a bona fide officer thereof.

(e) A party may be represented in any proceeding by an attorney at law duly admitted to practice before the Commission.

(d) A party shall not be represented at any hearing before the Commission or a trial examiner except as stated in paragraphs (6) and (c) of this rule.

(e) In all matters other than hearings before the Commission or a wir examiner, a party may be represented by an agent who is duly admitted to practice before the Commission.

f) All persons appearing before or transacting business with the Commission in a representative capacity may be required to file powers of attorney with the Commission showing their authority to at in such capacity.

(g) Commencing November 1, 1935, a register will be maintained. by the Commission in which will be entered the names and addresses of all persons admitted to practice before the Commission. Only individual members of firms will be admitted.

(A). Subject to the provisions of paragraphs (d) and (e) of this rule, the following classes of persons whom the Commission finds. on consideration of their application, to be of good moral character

and to possess the requisite qualification to represent others, may be admitted to practice before the Commission:

(1) Attorneys at law who are admitted to practice before any court of the United States, the District of Columbia, or the highest court of any State or Territory.

(2) Any person, not an attorney, to be designated as agent, who shall be a citizen of the United States and who shall, in the opinion of the Commission, possess the necessary education, training, experience, and technical qualifications which would enable him properly to represent others before the Commission. (i) An application for admission to practice shall be addressed to the Commission, Washington, D. C., stating under oath the name, residence address, and business address of the applicant. In the case of an attorney, the time and place of admission to the bar and whether the applicant has ever been suspended or disbarred as an attorney in any court or jurisdiction shall be stated. In the case of an agent, the application shall state briefly his education, training, experience, and other legal or technical qualifications.

(j) In the discretion of the Commission or trial examiner, an attorney at law may be permitted to appear for the purpose of any proceeding, though not theretofore admitted to practice in the way prescribed.

(k) All persons appearing in any proceeding shall conform to the standards of conduct generally required of practitioners at law.

(7) The Commission may, in its discretion, deny admission to, suspend, or disbar, any person who does not possess the requisite qualifications to represent others, or who is lacking in character, integrity, or proper professional conduct. Except as provided in paragraph (m) of this rule, a person who has been admitted to practice may be suspended or disbarred only after he has been afforded an opportunity to be heard.

(m) Contemptuous conduct at any hearing before the Commission or a trial examiner shall be ground for exclusion from said hearing and for summary suspension without a hearing for the duration of the proceeding.

RULE III

NOTICE OF HEARINGS IN CERTAIN PROCEEDINGS

(a) Whenever a hearing is ordered by the Commission in any proceeding under section 8 of the Securities Act of 1933, notice of such hearing shall be given by the secretary of the Commission to the person designated in the registration statement as being authorized to receive service and notice of orders and notices issued by the Commission relating to such registration statement. Such notice

shall state the time and place of hearing and shall include a statement of the items in the registration statement by number or name which appear to be incomplete or inaccurate in any material respect or to include any untrue statements of a material fact or to omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading. Such notice shall be given either by personal service or by confirmed telegraphic notice and shall be given a reasonable time before the hearing. The personal notice or the confirmation of the telegraphic notice shall be accompanied by a short and simple statement of the matters to be sidered and determined at the hearing.

(b) Whenever a hearing is ordered by the Commission in any Įroceeding under sections 6 (e), 11 (c), 12, 15, 19 (a) (1), 19 (a) (3), or 19 (b) of the Securities Exchange Act of 1934, notice of such hearing shall be given to the registrant, applicant, or other person or persons entitled to receive such notice by the Secretary of the Commission or any other duly designated officer. Such notice shall tate the time and place of hearing and shall include a short and emple statement of the matters to be considered and determined at the hearing. Such notice shall be given by personal service, registered mail, or confirmed telegraphic notice, and shall be given a reasonable time before the hearing.

RULE IV

HEARINGS; EVIDENCE

(a) Hearings shall be held as ordered by the Commission. (b) All hearings, except hearings, if ordered, on objections to public disclosure of information pursuant to the provisions of clause of schedule A of the Securities Act of 1933 or section 24 (b) of the Securities Exchange Act of 1934, shall be public, unless otherwise ordered by the Commission, and shall be held before the Comsion, one or more of its members, or a duly designated officer berein referred to as the trial examiner. References herein to hearngs before the Commission shall include hearings before one or more members of the Commission.

(e) Hearings shall be stenographically reported and a transcript Lereof shall be made which shall be a part of the record of the proceeding. Transcripts will be supplied to the parties by the official porter at such rates as may be fixed by contract between the Comission and the reporter.

id) Objections to evidence before the Commission or trial examher shall be in short form, stating the grounds of objections relied and the transcript shall not include argument or debate thereon