N.Y. Comp. Codes R. & Regs. tit. 11 § 8.1
Upon approval of an application for exemption as hereinafter provided, the provisions of subsection (a) of section 1221 of the Insurance Law shall not apply to any purchase and sale, or sale and purchase, and the provisions of subsection (b) of section 1221 of such law shall not apply to any sale, of any stock not then or theretofore held by him in his investment account, by a dealer in the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary market; and no such purchase or sale shall be matched against any sale or purchase of such dealer for his investment account for the purpose of determining profits under said subsection (b). A market-making exemption will be granted upon written application therefor and a certification by the applicant that the stock for which exemption is requested is stock which has been or will be purchased by applicant for his inventory held or to be held for sale as a dealer in the ordinary course of his business and incident to the establishment or maintenance of a primary or secondary market and will not be stock which has been or will be held by such dealer for investment.
N.Y. Comp. Codes R. & Regs. Tit. 11 § 8.1