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The Independent Trading Company Act, Part 4: Exchanges

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The Independent trading company (ITC) is an industry term that refers to an individual or entity that owns, controls, or operates a stock exchange or other market-making facility for the purpose of making trades, or offering securities or commodities in exchange for securities or goods.

The term also refers to a company that makes, markets, or offers securities or other commodities on an exchange.

Under federal law, the ITC must be registered as a securities or exchange.

For purposes of this guide, an ITC is an “exchange” if it offers securities on an Exchange Act-regulated securities market.

Exchanges are regulated by the SEC, the Commodity Futures Trading Commission, and the Commissary and Clearinghouse of the Commis sity for the conduct of commerce.

The SEC regulates and enforces the exchange act, which sets forth requirements for the registration of ITCs and regulates certain types of trading in exchange traded futures contracts.

The CFTC regulates and monitors the ITCs.

The Securities and Exchange Commission regulates and investigates violations of securities laws, including the trading in securities.

Exemptions from registration and registration requirements apply to the ITCS and the trades it makes.

For more information, visit the website of the SEC.

Under the Exchange Act, a “registered exchange” is defined as an entity that has registered with the SEC and that has “registered in the United States” as a stock market or securities market-maker under the Exchange Acts rules.

The definition of a “qualified exchange” includes a stock or other financial product exchange.

A broker or dealer may also be a qualified exchange.

The IRS generally does not require an ITCC to register as a broker or to pay any additional fees or expenses for providing financial services.

See the IRS website for more information on broker-dealers and their tax obligations.

Exceptions to the Exchange act’s definition of an “Exchange” include a company listed on the NYSE and NYSE Arca or NYSE AMEX, as well as certain other broker-deals.

For a list of exchanges, visit www.sec.gov.

To avoid the registration requirements, a broker may use an alias to protect itself from potential regulatory scrutiny.

To learn more, visit https://www.seccommission.gov/exchange-act-guidance.

A “registered” exchange does not have to be in compliance with the exchange Act’s registration requirements.

To find out if your company is a registered exchange, call the Internal Revenue Service (IRS) toll-free at 1-800-829-4040 or visit the IRS.gov website for the exchange rules and the rules governing the use of an alias.

When an ITCA or its affiliates engage in securities-related activities, the exchanges must comply with the Exchange acts rules and must register with the IRS and submit the appropriate documents.

If your company does not register with a tax-exempt organization, the IRS may revoke your company’s registration.

If you are considering using an ITCs services to sell your company or its assets, consider carefully the rules and requirements that apply to a registered trade.

In addition, the CFTC requires ITCs to register with it and may impose fines or fees in connection with violations of the Exchange rules.

For further information, consult your tax advisor.

What to Know About the Exchange and Trading in Exchange Trades

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