(5)According to Section 19(a)(1) of the Exchange Act, an exchange must be registered with the SEC as a NSE before it may begin operations. The SEC grants registration if it finds that the applicable requirements with respect to the applicant are satisfied. The SEC must deny a registration if those requirements are not satisfied. The Exchange Act further requires that an exchange has in place arrangements to address all of the types of conduct and activity that an applicant wished to engage in. Under the Exchange Act, continued compliance with the initial registration requirements is a condition for continued registration for NSEs. Registered NSEs are thus required to maintain rules, policies and procedures consistent with their statutory obligations, and to have the capacity to carry out their obligations on a continuous basis.