A Broker-Dealer\u27s Civil Liability for Fraud: An Implied Private Right of Action Under Section 15(c)(1) of the Securities Exchange Act of 1934

In light of the dearth of scholarly attention to section 15(c)(1) to date, this article is intended to be the first, rather than the last, word on the issue of implying a private right of action under that section. The legislative history of section 15(c)(1) points to a congressional assumption that a private litigant could sue a broker-dealer for violation of that section. In light of the paucity of judicial interpretation of section 15(c)(1), however, the manner in which the courts will define the contours of a private action under it is a matter of some speculation. This article is designed to lay a framework for analysis for this often-overlooked section of the Securities Exchange Act, and to suggest some open questions for further examination