Bond Price Competition Improvement Act of 1999

Summary: Bond Price Competition Improvement Act of 1999 - Amends the Securities Exchange Act of 1934 (the Act) to replace requirements regarding the National Market Advisory Board with the requirement that the Securities and Exchange Commission (SEC) adopt rules and take actions to assure prompt, comprehensive public dissemination of transaction information, including last sale date, regarding covered debt securities (i.e., bonds, debentures, or other debt instruments besides exempted securities).  Directs the SEC, when determining such actions to consider private sector collection and distribution systems for transaction information on corporate debt securities. Modifies securities' registration requirements to provide that: (1) a registration is not required to be effective for exchange trading of a class of debt securities of an issuer that has another class of securities for which a registration is effective for such exchange; and (2) such class of debt securities shall be treated as registered upon approval of its listing by the exchange. Directs the Comptroller General to study and report to Congress on investor protection measures needed to improve information dissemination and transparency concerning transactions in: (1) debt securities as to which transaction information is collected but not disseminated pursuant to the Act; and (2) municipal securities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bond Price Competition Improvement 
Act of 1999''.

SEC. 2. EXTENSION OF TRANSACTION REPORTING TO DEBT SECURITIES.

    (a) Amendment.--Subsection (d) of section 11A of the Securities 
Exchange Act of 1934 (15 U.S.C. 78k-1(d)) is amended to read as 
follows:
    ``(d) Minimum Requirements for Transaction Information on Debt 
Securities.--
            ``(1) Action Required.--The Commission shall adopt such 
        rules and take such other actions under this section as may be 
        necessary or appropriate, having due regard for the public 
        interest, the protection of investors, and the maintenance of 
        fair and orderly markets to assure the prompt, accurate, 
        reliable, and fair collection, processing, distribution, and 
        publication of transaction information, including last sale 
        data, with respect to covered debt securities so that such 
        information is available to all exchange members, brokers, 
        dealers, securities information processors, and all other 
        persons. In determining the rules or other actions to take 
        under this subsection, the Commission shall take into 
        consideration, among other factors, private sector systems for 
        the collection and distribution of transaction information on 
        corporate debt securities.
            ``(2) Effect on other authority.--Nothing in this 
        subsection limits or otherwise alters the Commission's 
        authority under the other provisions of this section or any 
        other provision of this title.
            ``(3) Definitions.--For purposes of this subsection:
                    ``(A) Covered debt securities.--The term `covered 
                debt securities' means bonds, debentures, or other debt 
                instruments of an issuer, other than--
                            ``(i) exempted securities; and
                            ``(ii) securities that the Commission 
                        determines by rule to except from the 
                        requirements of this subsection.
                    ``(B) Transaction information.--The term 
                `transaction information' means information concerning 
                such price, volume, and yield information associated 
                with a transaction involving the purchase or sale of a 
                covered debt security as may be prescribed by the 
                Commission by rule for purposes of this subsection.
                    ``(C) Factors in definitional rules.--In 
                prescribing rules pursuant to this paragraph, the 
                Commission shall take into consideration the extent to 
                which a security is actively traded, market liquidity, 
                competition, the protection of investors and the public 
                interest, and other relevant factors.''.
    (b) Conforming Amendment.--Section 11A(a)(3)(A) of such Act is 
amended by striking ``(which shall be in addition to the National 
Market Advisory Board established pursuant to subsection (d) of this 
section)''.
    (c) Deadline for Action.--The Securities and Exchange Commission 
shall take action to implement the requirements of section 11A(d) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78k-1(d)), as amended by 
subsection (a) of this section, within 12 months after the date of 
enactment of this Act.

SEC. 3. EXCHANGE LISTING OF DEBT SECURITIES.

    Section 12(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l(a)) is amended by striking the period at the end thereof and 
inserting the following: ``, except that a registration is not required 
to be effective for trading on an exchange of a class of debt 
securities of an issuer that has another class of securities for which 
a registration is effective for such exchange. Such a class of debt 
securities shall, for purposes of any provision of this title or the 
rules or regulations thereunder, be treated as a class of securities 
registered under this section upon approval of the listing of such 
class of debt securities by the exchange.''.

SEC. 4. TECHNICAL AMENDMENT.

    Section 3(a)(12)(B) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(12)(B)) is amended by adding at the end the following new 
clause:
            ``(iii) Notwithstanding subparagraph (A)(i) of this 
        paragraph, securities, other than equity securities, that are 
        described in subparagraphs (B) and (C) of paragraph (42) of 
        this subsection shall not be deemed to be exempted securities 
        for purposes of section 11A of this title.''.

SEC. 5. STUDIES.

    (a) Studies Required.--The Comptroller General shall conduct a 
study of measures needed in the public interest and for the protection 
of investors to improve the prompt, accurate, reliable, and fair 
collection, processing, distribution, and publication of information 
concerning transactions--
            (1) in debt securities as to which transaction information 
        is collected but not disseminated pursuant to section 11A(d) of 
        the Securities Exchange Act of 1934, as amended by this Act (15 
        U.S.C. 78k-1(d)); and
            (2) in municipal securities (as such term is defined in 
        section 3(a)(29) of such Act (15 U.S.C. 78c(a)(29)).
    (b) Commission and MSRB Participation.--The Comptroller General 
shall conduct the study required by subsection (a)(1) in consultation 
with the Securities and Exchange Commission, and the study required by 
subsection (a)(2) in consultation with the Securities and Exchange 
Commission and the Municipal Securities Rulemaking Board.
    (c) Submission of Reports.--The Comptroller General shall submit to 
the Congress a report on the studies required by subsection (a) within 
one year after the date of enactment of this Act. Such reports shall 
include an identification of the measures needed to improve the prompt, 
accurate, reliable, and fair collection, processing, distribution, and 
publication of information concerning transactions in the debt 
securities and municipal securities described in such subsection, 
including measures requiring legislative or regulatory action.

            Passed the House of Representatives June 14, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.