PUBLIC LAW 101-429—OCT. 15, 1990 104 STAT. 955 additional information concerning transactions in penny stocks. "(4) EXEMPTIONS.— The Commission, as it determines consistent with the public interest and the protection of investors, may by rule, regulation, or order exempt in whole or in part, conditionally or unconditionally, any person or class of persons, or any transaction or class of transactions, from the requirements of this subsection. Such exemptions shall include an exemption for brokers and dealers based on the minimal percentage of the broker's or dealer's commissions, commission-equivalents, and markups received from transactions in penny stocks. "(5) REGULATIONS. — It shall be unlawful for any person to violate such rules and regulations as the Commission shall prescribe in the public interest or for the protection of investors or to maintain fair and orderly markets— "(A) as necessary or appropriate to carry out this subsection; or "(B) as reasonably designed to prevent fraudulent, deceptive, or manipulative acts and practices with respect to penny stocks.'. SEC. 506. DEVELOPMENT OF AUTOMATED QUOTATION SYSTEMS FOR PENNY STOCKS. The Securities Exchange Act of 1934 is amended by inserting after section 17A the following new section: "AUTOMATED QUOTATION SYSTEMS FOR PENNY STOCKS "SEC. 17B. (a) FINDINGS.— The Congress finds that— 15 USC 78q-2. "(1) the market for penny stocks suffers from a lack of reliable and accurate quotation and last sale information available to investors and regulators; "(2) it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to improve significantly the information available to brokers, dealers, investors, and regulators with respect to quotations for and transactions in penny stocks; and "(3) a fully implemented automated quotation system for penny stocks would meet the information needs of investors and market participants and would add visibility and regulatory and surveillance data to that market. "(b) MANDATE TO FACILITATE THE ESTABLISHMENT OF AUTOMATED QUOTATION SYSTEMS. — "(1) IN GENERAL.— The Commission shall facilitate the widespread dissemination of reliable and accurate last sale and quotation information with respect to penny stocks in accordance with the findings set forth in subsection (a), with a view toward establishing, at the earliest feasible time, one or more automated quotation systems that will collect and disseminate information regarding all penny stocks. "(2) CHARACTERISTICS OF SYSTEMS.— Each such automated quotation system shall— "(A) be operated by a registered securities gissociation or a national securities exchange in accordeince with such rules as the Commission and these entities shall prescribe; "Ci "(B) collect and disseminate quotation and transaction •' information;
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