Question - how can they avoid SEC regulation and rules? Being a market is a difficult and expensive thing to do.... [edit] looked at the FAQ, however they don'

Question - how can they avoid SEC regulation and rules? Being a market is a difficult and expensive thing to do.... [edit] looked at the FAQ, however they don't actually state WHICH of the exemptions they fall under. I thought if you issued a security that had more than 20 non-qualified investors you needed to do reporting and file w/ the SEC.