15 U.S.C. § 78j : US Code - Section 78J: Manipulative and deceptive devices

      It shall be unlawful for any person, directly or indirectly, by
    the use of any means or instrumentality of interstate commerce or
    of the mails, or of any facility of any national securities
    exchange - 
        (a)(1) To effect a short sale, or to use or employ any stop-
      loss order in connection with the purchase or sale, of any
      security other than a government security, in contravention of
      such rules and regulations as the Commission may prescribe as
      necessary or appropriate in the public interest or for the
      protection of investors.
        (2) Paragraph (1) of this subsection shall not apply to
      security futures products.
        (b) To use or employ, in connection with the purchase or sale
      of any security registered on a national securities exchange or
      any security not so registered, or any securities-based swap
      agreement (!1) any manipulative or deceptive device or
      contrivance in contravention of such rules and regulations as the
      Commission may prescribe as necessary or appropriate in the
      public interest or for the protection of investors.

        (c)(1) To effect, accept, or facilitate a transaction involving
      the loan or borrowing of securities in contravention of such
      rules and regulations as the Commission may prescribe as
      necessary or appropriate in the public interest or for the
      protection of investors.
        (2) Nothing in paragraph (1) may be construed to limit the
      authority of the appropriate Federal banking agency (as defined
      in section 1813(q) of title 12), the National Credit Union
      Administration, or any other Federal department or agency having
      a responsibility under Federal law to prescribe rules or
      regulations restricting transactions involving the loan or
      borrowing of securities in order to protect the safety and
      soundness of a financial institution or to protect the financial
      system from systemic risk.

    Rules promulgated under subsection (b) of this section that
    prohibit fraud, manipulation, or insider trading (but not rules
    imposing or specifying reporting or recordkeeping requirements,
    procedures, or standards as prophylactic measures against fraud,
    manipulation, or insider trading), and judicial precedents decided
    under subsection (b) of this section and rules promulgated
    thereunder that prohibit fraud, manipulation, or insider trading,
    shall apply to security-based swap agreements to the same extent as
    they apply to securities. Judicial precedents decided under section
    77q(a) of this title and sections 78i, 78o, 78p, 78t, and 78u-1 of
    this title, and judicial precedents decided under applicable rules
    promulgated under such sections, shall apply to security-based swap
    agreements to the same extent as they apply to securities.