I

103D CONGRESS

1ST SESSION H. R. 2550

To establish a Markets and Trading Commission in order to combine the

functions of the Commodity Futures Trading Commission and the Securities and Exchange Commission in a single independent regulatory commission, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 29, 1993

Mr. GLICKMAN (for himself and Mr. WYDEN) introduced the following bill;

which was referred jointly to the Committees on Agriculture, Energy and

Commerce, and Banking, Finance and Urban Affairs

A BILL

To establish a Markets and Trading Commission in order

to combine the functions of the Commodity Futures

Trading Commission and the Securities and Exchange

Commission in a single independent regulatory commission, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Markets and Trading Reorganization and Reform Act’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.
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Sec. 2. Purposes.

Sec. 3. Definitions.

Sec. 4. Effect on congressional jurisdiction.

TITLE I—ESTABLISHMENT OF COMMISSION

Sec. 101. Establishment.

Sec. 102. Members: appointment; terms.

Sec. 103. Organization of commission.

Sec. 104. General Counsel.

TITLE II—TRANSFERS OF FUNCTIONS

Sec. 201. Commodity Futures Trading Commission functions.

Sec. 202. Securities and Exchange Commission.

Sec. 203. Jurisdiction of margin authority.

TITLE III—FEDERAL FINANCIAL MARKETS COORDINATING

COUNCIL

Sec. 301. Establishment; membership.

Sec. 302. Functions of the Council.

Sec. 303. Staff; administrative support; expenses.

TITLE IV—ADMINISTRATIVE PROVISIONS

PART A—PERSONNEL PROVISIONS

Sec. 401. Officers and employees.

Sec. 402. Experts and consultants.

PART B—GENERAL ADMINISTRATIVE PROVISIONS

Sec. 411. General authority.

Sec. 412. Delegation.

Sec. 413. Reorganization.

Sec. 414. Rules.

Sec. 415. Contracts.

Sec. 416. Regional and field offices.

Sec. 417. Use of facilities.

Sec. 418. Working capital fund.

Sec. 419. Funds transfer.

Sec. 420. Seal of Commission.

Sec. 421. Annual report.

Sec. 422. Authorization of appropriations.

TITLE V—TRANSITIONAL, SAVINGS, AND CONFORMING

PROVISIONS

Sec. 501. Transfer and allocation of appropriations and personnel.

Sec. 502. Effect on personnel.

Sec. 503. Agency terminations.

Sec. 504. Incidental transfers.

Sec. 505. Savings provisions.

Sec. 506. Separability.

Sec. 507. Reference.

Sec. 508. Amendments.

Sec. 509. Transition.
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TITLE VI—EFFECTIVE DATE

Sec. 601. Effective date.

1 SEC. 2. PURPOSES.

2 The purposes of this Act are—

3 (1) to establish a single Federal regulatory body

4 with jurisdiction over securities, options, futures,

5 and related markets and instruments;

6 (2) to consolidate and revise the authority for

7 setting margin requirements on all such instru8 ments;

9 (3) to coordinate the regulation of all financial

10 markets;

11 (4) to strengthen investor confidence in United

12 States financial markets; and

13 (5) to ensure the competitiveness of those mar14 kets.

15 SEC. 3. DEFINITIONS.

16 As used in this Act—

17 (1) the term ‘‘Commission’’ means the Markets

18 and Trading Commission established by section 101

19 of this Act; and

20 (2) the term ‘‘function’’ includes any duty, obli21 gation, power, authority, responsibility, right, privi22 lege, activity, or program.
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1 SEC. 4. EFFECT ON CONGRESSIONAL JURISDICTION.

2 It is the sense of Congress that this Act shall not

3 be construed to affect the jurisdiction of any committee

4 or subcommittee of the Congress with respect to any func5 tion transferred to the Commission by this Act.

6 TITLE I—ESTABLISHMENT OF

7 COMMISSION

8 SEC. 101. ESTABLISHMENT.

9 There is established an independent regulatory com10 mission to be known as the Markets and Trading Commis11 sion.

12 SEC. 102. MEMBERS: APPOINTMENT; TERMS.

13 (a) COMPOSITION OF COMMISSION.—The Commis14 sion shall be composed of five commissioners appointed by

15 the President, by and with the advice and consent of the

16 Senate. One of the commissioners shall be designated by

17 the President as chairman. Not more than three of such

18 members shall be members of the same political party.

19 Each Commissioner shall be selected solely on the basis

20 of integrity and demonstrated knowledge of the operations

21 of the markets subject to the jurisdiction of the Commis22 sion.

23 (b) TERMS.—Each commissioner shall be appointed

24 for a term of 5 years, except that—

25 (1) a commissioner may continue to serve after

26 the expiration of such term until a successor is ap-
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1 pointed and has qualified, but may not continue to

2 so serve beyond the expiration of the next session of

3 Congress beginning after the expiration of such

4 term;

5 (2) the terms of office of the commissioners

6 first taking office after the enactment of this Act

7 shall expire, as designated by the President at the

8 time of their appointment—

9 (A) 1 at the end of 1 year;

10 (B) 2 at the end of 3 years; and

11 (C) 2 at the end of 5 years; and

12 (3) any member appointed to fill a vacancy oc13 curring prior to the expiration of the term for which

14 the predecessor was appointed shall be appointed for

15 the remainder of such term.

16 (c) CONFLICTS OF INTEREST.—

17 (1) IN GENERAL.—No commissioner shall en18 gage in any other business, vocation, or employment

19 than that of serving as commissioner, nor shall any

20 commissioner participate, directly or indirectly, in

21 any market operations or transactions of a character

22 subject to regulation by the Commission pursuant to

23 this title.

24 (2) REIMBURSEMENT FOR TRAVEL.—Notwith25 standing any other provision of law, in accordance
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1 with regulations which the Commission shall pre2 scribe to prevent conflicts of interest, the Commis3 sion may accept payment and reimbursement, in

4 cash or in kind, from non-Federal agencies, organi5 zations, and individuals for travel, subsistence, and

6 other necessary expenses incurred by Commission

7 members and employees in attending meetings and

8 conferences concerning the functions or activities of

9 the Commission. Any payment or reimbursement ac10 cepted shall be credited to the appropriated funds of

11 the Commission. The amount of travel, subsistence,

12 and other necessary expenses for members and em13 ployees paid or reimbursed under this subsection

14 may exceed per diem amounts established in official

15 travel regulations, but the Commission may include

16 in its regulations under this subsection a limitation

17 on such amounts.

18 (3) PROFESSIONAL FELLOWS.—Notwithstand19 ing any other provision of law, former employers of

20 participants in the Commission’s professional fellows

21 programs may pay such participants their actual ex22 penses for relocation to Washington, District of Co23 lumbia, to facilitate their participation in such pro24 grams, and program participants may accept such

25 payments.
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1 (d) FEES.—Notwithstanding any other provision of

2 law, whenever any fee is required to be paid to the Com3 mission pursuant to any provision of the securities laws

4 or any other law, the Commission may provide by rule that

5 such fee shall be paid in a manner other than in cash.

6 SEC. 103. ORGANIZATION OF COMMISSION.

7 The Commission shall establish the principal divi8 sions and subdivisions of the Commission, except that the

9 Commission shall establish a separate division with re10 sponsibility for functions relating to markets in physical

11 commodities.

12 SEC. 104. GENERAL COUNSEL.

13 There shall be in the Commission an Office of Gen14 eral Counsel, headed by a General Counsel appointed by

15 the President, by and with the advice and consent of the

16 Senate.

17 TITLE II—TRANSFERS OF

18 FUNCTIONS

19 SEC. 201. COMMODITY FUTURES TRADING COMMISSION

20 FUNCTIONS.

21 There are transferred to the Commission all functions

22 of the Commodity Futures Trading Commission and of

23 any officer or component of the Commodity Futures

24 Trading Commission.
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1 SEC. 202. SECURITIES AND EXCHANGE COMMISSION.

2 There are transferred to the Commission all functions

3 of the Security and Exchange Commission and of any offi4 cer or component of the Securities and Exchange

5 Commission.

6 SEC. 203. JURISDICTION OF MARGIN AUTHORITY.

7 (a) MARGIN AUTHORITY WITH RESPECT TO SECURI8 TIES.—There is transferred to the Commission the func9 tions of the Board of Governors of the Federal Reserve

10 System under section 7 of the Securities Exchange Act

11 of 1934.

12 (b) MARGIN AUTHORITY WITH RESPECT TO FU13 TURES.—Notwithstanding section 5a(12) of the Commod14 ity Exchange Act, the Commission may—

15 (1) by order, direct contract markets to adjust

16 the level of margin required on any contract; or

17 (2) by regulation, prescribe limits on the level

18 of margin that a contract market may require on

19 any class or category of contract;

20 as necessary to ensure the financial integrity of such mar21 ket.
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1 TITLE III—FEDERAL FINANCIAL

2 MARKETS COORDINATING

3 COUNCIL

4 SEC. 301. ESTABLISHMENT; MEMBERSHIP.

5 (a) ESTABLISHMENT.—There is established in the ex6 ecutive branch a council to be known as the Federal

7 Financial Markets Coordinating Council.

8 (b) MEMBERSHIP.—The Council shall be composed of

9 the heads of the following agencies or their designees for

10 this purpose:

11 (1) The Board of Governors of the Federal Re12 serve System.

13 (2) The Comptroller of the Currency.

14 (3) The Department of the Treasury.

15 (4) The Markets and Trading Commission.

16 (5) The National Credit Union Administration.

17 (6) The Office of Thrift Supervision.

18 (7) The Federal Deposit Insurance Corporation.

19 (c) CHAIRMAN.—The Council shall elect one of its

20 members to serve as chairman.

21 SEC. 302. FUNCTIONS OF THE COUNCIL.

22 The Federal Financial Markets Coordinating Council

23 shall—
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1 (1) serve as a facility for the coordination of

2 the regulatory operations of each of the agencies

3 represented on the Council;

4 (2) meet bimonthly and at the call of the chair

5 to discuss issues relating to the safety and effective6 ness of the financial services industry and other is7 sues relating to those regulatory operations;

8 (3) establish an advisory committee of not more

9 than 5 members representative of the futures, com10 modities, options, and securities exchanges and the

11 banking industry to meet no less than 4 times annu12 ally; and

13 (4) report biennially to the Congress on its

14 functions and activities, including in the first such

15 report such recommendations for legislative action

16 as it considers appropriate.

17 SEC. 303. STAFF; ADMINISTRATIVE SUPPORT; EXPENSES.

18 (a) STAFF; ADMINISTRATIVE SUPPORT.—The Com19 mission and each agency represented on the Council shall

20 provide to the Council such personnel and administrative

21 support as the Council may require to carry out its func22 tions under this title.

23 (b) EXPENSES.—There are authorized to be appro24 priated such sums as may be necessary for the expenses

25 of the Commission in carrying out this title. Funds appro-
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1 priated under this subsection may be available to reim2 burse agencies for personnel detailed to the Council and

3 for administrative support provided under subsection (a).

4 TITLE IV—ADMINISTRATIVE

5 PROVISIONS

6 PART A—PERSONNEL PROVISIONS

7 SEC. 401. OFFICERS AND EMPLOYEES.

8 (a) APPOINTMENT AND COMPENSATION.—The Com9 mission is authorized to appoint and fix the compensation

10 of such officers and employees, including attorneys, as

11 may be necessary to carry out the functions of the Com12 mission. Except as otherwise provided by law, such officers

13 and employees shall be appointed in accordance with the

14 civil service laws and their compensation fixed in accord15 ance with title 5 of the United States Code.

16 (b) SPECIAL PROVISIONS.—

17 (1) CONTINUITY OF SUPERGRADE POSITIONS.—

18 At the request of the Commission, the Director of

19 the Office of Personnel Management shall, under

20 section 5108 of title 5, United States Code, provide

21 for the establishment in each of the grade levels GS–

22 16, GS–17, and GS–18 of a number of positions in

23 the Commission equal to the number of positions in

24 that grade level which were used primarily for the

25 performance of functions and offices transferred
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1 under this Act and which were assigned and filled on

2 the day before the effective date of this Act.

3 (2) CONTINUITY OF PROFESSIONAL AND TECH4 NICAL POSITIONS.—At the request of the Commis5 sion, the Director of the Office of Personnel Man6 agement shall, under section 3104 of title 5, United

7 States Code, provide for the establishment in the

8 Commission of a number of professional and tech9 nical positions outside of the General Schedule equal

10 to the number of such positions which were used pri11 marily for the performance of functions and offices

12 transferred under this Act and which were assigned

13 and filled on the day before the effective date of this

14 Act.

15 (3) APPOINTMENTS TO SPECIAL POSITIONS.—

16 Appointments to positions provided for under this

17 subsection may be made without regard to the provi18 sions of section 3324 of title 5 of the United States

19 Code, if the individual appointed in such position is

20 an individual who is transferred in connection with

21 the transfer of functions and offices under this Act

22 and, on the day preceding the effective date of this

23 Act, holds a position and has duties comparable to

24 those of the position to which appointed hereunder.
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1 (4) TERMINATION OF SPECIAL AUTHORITY.—

2 The authority under this subsection with respect to

3 any position shall terminate when the person first

4 appointed to fill such position ceases to hold such

5 position.

6 (5) TECHNICAL PROVISION.—For purposes of

7 section 414(a)(3)(A) of the Civil Service Reform Act

8 of 1978, an individual appointed under this sub9 section shall be deemed to occupy the same position

10 as the individual occupied on the day preceding the

11 effective date of this Act.

12 (c) ADDITIONAL TECHNICAL AND PROFESSIONAL

13 POSITIONS.—The Commission may appoint, without re14 gard to the provisions of title 5, United States Code, gov15 erning appointment in the competitive service, up to 100

16 technical or professional employees of the Commission and

17 may compensate employees so appointed without regard

18 to the provisions of chapter 51 and subchapter III of chap19 ter 53 of such title relating to classification and General

20 Schedule pay rates. The rate of basic compensation for

21 such employees shall not be equal to or in excess of the

22 minimum rate of pay currently paid for GS–16 of the

23 General Schedule under section 5332 of such title.

24 (d) LIMITED-TERM APPOINTEES.—Notwithstanding

25 any other provision of law, the Director of the Office of
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1 Personnel Management shall establish positions within the

2 Senior Executive Service for 10 limited-term appointees.

3 The Commission shall appoint individuals to such posi4 tions as provided by section 3394 of title 5, United States

5 Code. Such positions shall expire on the later of three

6 years after the effective date of this Act or three years

7 after the initial appointment to each position. Positions

8 in effect under this subsection shall be taken into account

9 in applying the limitations on positions prescribed under

10 section 3134(e) and section 5108 of such title.

11 SEC. 402. EXPERTS AND CONSULTANTS.

12 The Commission may as provided in appropriation

13 Acts obtain the services of experts and consultants in ac14 cordance with the provisions of section 3109 of title 5,

15 United States Code, and may compensate such experts

16 and consultants at rates not to exceed the daily rate pre17 scribed for GS–18 of the General Schedule under section

18 5332 of such title.

19 PART B—GENERAL ADMINISTRATIVE

20 PROVISIONS

21 SEC. 411. GENERAL AUTHORITY.

22 In carrying out any function transferred by this Act,

23 the Commission, or any officer or employee of the Com24 mission, may exercise any authority available by law (in25 cluding appropriation Acts) with respect to such function
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1 to the official or agency from which such function is trans2 ferred, and the actions of the Commission in exercising

3 such authority shall have the same force and effect as

4 when exercised by such official or agency.

5 SEC. 412. DELEGATION.

6 Exception as otherwise provided in this Act, the Com7 mission may delegate any function to such officers and

8 employees of the Commission as the Commission may des9 ignate, and may authorize such successive redelegations

10 of such functions within the Commission as may be nec11 essary or appropriate. No delegation of functions by the

12 Commission under this section or under any other provi13 sion of this Act shall relieve the Commission of responsibil14 ity for the administration of such functions.

15 SEC. 413. REORGANIZATION.

16 The Commission is authorized to allocate or reallo17 cate functions among the officers of the Commission, and

18 to establish, consolidate, alter, or discontinue such organi19 zational entities within the Commission as may be nec20 essary or appropriate.

21 SEC. 414. RULES.

22 The Commission is authorized to prescribe such rules

23 and regulations as the Commission determines necessary

24 or appropriate to administer and manage the functions of

25 the Commission.
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1 SEC. 415. CONTRACTS.

2 (a) IN GENERAL.—Subject to the provisions of the

3 Federal Property and Administrative Services Act of

4 1949, the Commission is authorized to make, enter into,

5 and perform such contracts, grants, leases, cooperative

6 agreements, or other similar transactions with Federal or

7 other public agencies (including State and local govern8 ments) and private organizations and persons, and to

9 make such payments, by way of advance or reimburse10 ment, as the Commission may determine necessary or ap11 propriate to carry out functions of the Commission.

12 (b) APPROPRIATIONS REQUIRED.—Notwithstanding

13 any other provision of this Act, no authority to enter into

14 contracts or to make payments under this title shall be

15 effective except to such extent or in such amounts as are

16 provided in advance under appropriation Acts.

17 SEC. 416. REGIONAL AND FIELD OFFICES.

18 The Commission is authorized to establish, alter, dis19 continue, or maintain such regional or other field offices

20 as the Commission may find necessary or appropriate to

21 perform functions of the Commission.

22 SEC. 417. USE OF FACILITIES.

23 (a) USE BY COMMISSION.—With their consent, the

24 Commission may, with or without reimbursement, use the

25 research, equipment, services, and facilities of any agency

26 or instrumentality of the United States, of any State or
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1 political subdivision thereof, or of any foreign government,

2 in carrying out any function of the Commission.

3 (b) USE BY OTHERS.—The Commission is authorized

4 to permit public and private agencies, corporations, asso5 ciations, organizations, or individuals to use any real prop6 erty, or any facilities, structures, or other improvements

7 thereon, under the custody and control of the Commission

8 for Commission purposes. The Commission shall permit

9 the use of such property, facilities, structures, or improve10 ments under such terms and rates and for such period

11 as may be in the public interest, except that the periods

12 of such uses may not exceed five years. The Commission

13 may require permittees under this section to recondition

14 and maintain, at their own expense, the real property, fa15 cilities, structures, and improvements used by such per16 mittees to a standard satisfactory to the Commission. This

17 subsection shall not apply to excess property as defined

18 in section 3(e) of the Federal Property and Administrative

19 Services Act of 1949.

20 (c) PROCEEDS FROM REIMBURSEMENTS.—Proceeds

21 from reimbursements under this section may be credited

22 to the appropriation of funds that bear or will bear all

23 or part of the cost of such equipment or facilities provided

24 or to refund excess sums when necessary.
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1 (d) TITLE TO PROPERTY.—Any interest in real prop2 erty acquired pursuant to this Act shall be acquired in

3 the name of the United States Government.

4 SEC. 418. WORKING CAPITAL FUND.

5 (a) AUTHORITY AND USE.—The Commission, with

6 the approval of the Director of the Office of Management

7 and Budget, is authorized to establish for the Commission

8 a working capital fund, to be available without fiscal year

9 limitation, for expenses necessary for the maintenance and

10 operation of such common administrative services as the

11 Commission shall find to be desirable in the interests of

12 economy and efficiency, including such services as—

13 (1) a central supply service for stationery and

14 other supplies and equipment for which adequate

15 stocks may be maintained to meet in whole or in

16 part the requirements of the Commission and its

17 components;

18 (2) central messenger, mail, telephone, and

19 other communications services;

20 (3) office space, central services for document

21 reproduction, and for graphics and visual aids; and

22 (4) a central library service.

23 (b) CONTENTS AND MANAGEMENT OF FUND.—The

24 capital of the fund shall consist of any appropriations

25 made for the purpose of providing working capital and the
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1 fair and reasonable value of such stocks of supplies, equip2 ment, and other assets and inventories on order as the

3 Commission may transfer to the fund, less the related li4 abilities and unpaid obligations. Such funds shall be reim5 bursed in advance from available funds of agencies and

6 offices in the Commission, or from other sources, for sup7 plies and services at rates that will approximate the ex8 pense of operation, including the accrual of annual leave

9 and the depreciation of equipment. The fund shall also be

10 credited with receipts from sale or exchange of property

11 and receipts in payment for loss or damage to property

12 owned by the fund. There shall be covered into the Treas13 ury as miscellaneous receipts any surplus of the fund (all

14 assets, liabilities, and prior losses considered) above the

15 amounts transferred or appropriated to establish and

16 maintain such fund. There shall be transferred to the fund

17 the stocks of supplies, equipment, other assets, liabilities,

18 and unpaid obligations relating to the services which the

19 Commission determines, with the approval of the Director

20 of the Office of Management and Budget, will be per21 formed.

22 SEC. 419. FUNDS TRANSFER.

23 The Commission may, when authorized in an appro24 priation Act in any fiscal year, transfer funds from one

25 appropriation to another within the Commission, except
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1 that no appropriation for any fiscal year shall be either

2 increased or decreased pursuant to this section by more

3 than 5 percent and no such transfer shall result in increas4 ing any such appropriation above the amount authorized

5 to be appropriated therefor.

6 SEC. 420. SEAL OF COMMISSION.

7 The Commission shall cause a seal of office to be

8 made for the Commission of such design as the Commis9 sion shall approve. Judicial notice shall be taken of such

10 seal.

11 SEC. 421. ANNUAL REPORT.

12 (a) CONTENTS.—The Commission shall, as soon as

13 practicable after the close of each fiscal year, make a sin14 gle, comprehensive report to the President for trans15 mission to the Congress on the activities of the Commis16 sion during such fiscal year. The report shall include a

17 statement of goals, priorities, and plans for the Commis18 sion together with an assessment of the progress made to19 ward—

20 (1) the attainment of such goals, priorities, and

21 plans; and

22 (2) the more effective and efficient management

23 of the Commission and the coordination of its func24 tions;
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1 accompanied where necessary by recommendations for

2 proposed legislation for the achievement of such objectives.

3 (b) CONTRACTING-OUT ESTIMATE.—The report re4 quired by subsection (a) shall also include an estimate of

5 the extent of the non-Federal personnel employed pursu6 ant to contracts entered into by the Commission under

7 section 415 or under any other authority (including any

8 subcontract thereunder), the number of such contracts

9 and subcontracts pursuant to which non-Federal person10 nel are employed, and the total cost of those contracts and

11 subcontracts.

12 SEC. 422. AUTHORIZATION OF APPROPRIATIONS.

13 There are authorized to be appropriated—

14 (1) $10,000,000 to carry out this Act; and

15 (2) such sums as may be necessary for fiscal

16 years 1995, 1996, and 1997 to carry out the func17 tions transferred by this Act to the Commission.

18 Funds appropriated pursuant to paragraph (1) of this sec19 tion are authorized to remain available until expended.
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1 TITLE V—TRANSITIONAL, SAV2 INGS, AND CONFORMING

3 PROVISIONS

4 SEC. 501. TRANSFER AND ALLOCATION OF APPROPRIA5 TIONS AND PERSONNEL.

6 (a) IN GENERAL.—Except as otherwise provided in

7 this Act, the personnel employed in connection with, and

8 the assets, liabilities, contracts, property, records, and un9 expended balance of appropriations, authorizations, alloca10 tions, and other funds employed, held, used, arising from,

11 available to, or to be made available in connection with

12 the functions and offices, or portions thereof transferred

13 by this Act, subject to section 202 of the Budget and Ac14 counting Procedures Act of 1950, shall be transferred to

15 the Commission for appropriate allocation. Unexpended

16 funds transferred pursuant to this subsection shall be used

17 only for the purposes for which the funds were originally

18 authorized and appropriated.

19 (b) EXCEPTION.—Positions expressly specified by

20 statute or reorganization plan to carry out functions or

21 offices transferred by this Act, personnel occupying those

22 positions on the effective date of this Act, and personnel

23 authorized to receive compensation in such positions at the

24 rate prescribed for offices and positions at level IV or V

25 of the Executive Schedule (5 U.S.C. 5315–5316) on the
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1 effective date of this Act, shall be subject to the provisions

2 of section 503.

3 SEC. 502. EFFECT ON PERSONNEL.

4 (a) PROTECTION AGAINST REDUCTION IN GRADE OR

5 COMPENSATION.—Except as otherwise provided in this

6 Act, the transfer pursuant to this title of full-time person7 nel (except special Government employees) and part-time

8 personnel holding permanent positions shall not cause any

9 such employee to be separated or reduced in grade or com10 pensation for one year after the date of transfer to the

11 Commission.

12 (b) EXECUTIVE LEVEL APPOINTEES.—Any person

13 who, on the day preceding the effective date of this Act,

14 held a position compensated in accordance with the Execu15 tive Schedule prescribed in chapter 53 of title 5, United

16 States Code, and who, without a break in service, is ap17 pointed in the Commission to a position having duties

18 comparable to the duties performed immediately preceding

19 such appointment shall continue to be compensated in

20 such new position at not less than the rate provided for

21 such previous position, for the duration of the service of

22 such person in such new position.

23 SEC. 503. AGENCY TERMINATIONS.

24 (a) TERMINATED AGENCIES.—On the effective date

25 of this Act, the following entities shall terminate:
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1 (A) The Commodity Futures Trading Commis2 sion.

3 (B) The Securities and Exchange Commission.

4 (b) TERMINATED POSITIONS.—Each position which

5 was expressly authorized by law, or the incumbent of

6 which was authorized to receive compensation at the rate

7 prescribed for level III, IV, or V of the Executive Schedule

8 (5 U.S.C. 5315–5316), in an office terminated pursuant

9 to this Act shall also terminate.

10 SEC. 504. INCIDENTAL TRANSFERS.

11 (a) GENERAL AUTHORITY OF OMB.—The Director

12 of the Office of Management and Budget, at such time

13 or times as the Director shall provide, is authorized and

14 directed to make such determinations as may be necessary

15 with regard to the functions, offices, or portions thereof

16 transferred by this Act, and to make such additional inci17 dental dispositions of personnel, assets, liabilities, grants,

18 contracts, property, records, and unexpended balances of

19 appropriations, authorizations, allocations, and other

20 funds held, used, arising from, available to, or to be made

21 available in connection with such functions, offices, or por22 tions thereof, as may be necessary to carry out the provi23 sions of this Act. The Director shall provide for the termi24 nation of the affairs of all entities terminated by this Act
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1 and for such further measures and dispositions as may

2 be necessary to effectuate the purposes of this Act.

3 (b) SES POSITIONS.—After consultation with the Di4 rector of the Office of Personnel Management, the Direc5 tor of the Office of Management and Budget is authorized,

6 at such time as the Director of the Office of Management

7 and Budget provides, to make such determinations as may

8 be necessary with regard to the transfer of positions with9 in the Senior Executive Service in connection with func10 tions and offices transferred by this Act.

11 SEC. 505. SAVINGS PROVISIONS.

12 (a) CONTINUITY OF LEGAL INSTRUMENTS.—All or13 ders, determinations, rules, regulations, permits, grants,

14 contracts, certificates, licenses, and privileges—

15 (1) which have been issued, made, granted, or

16 allowed to become effective by the President, any

17 Federal department or agency or official thereof, or

18 by a court of competent jurisdiction, in the perform19 ance of functions which are transferred under this

20 Act to the Commission, and

21 (2) which are in effect at the time this Act

22 takes effect,

23 shall continue in effect according to their terms until

24 modified, terminated, superseded, set aside, or revoked in

25 accordance with the law by the President, the Commission,
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1 or other authorized official, a court of competent jurisdic2 tion, or by operation of law.

3 (b) CONTINUITY OF PROCEEDINGS.—

4 (1) IN GENERAL.—The provisions of this Act

5 shall not affect any proceedings, including notices of

6 proposed rulemaking, or any application for any li7 cense, permit, certificate, or financial assistance

8 pending on the effective date of this Act before any

9 department, agency, commission, or component

10 thereof, functions of which are transferred by this

11 Act; but such proceedings and applications, to the

12 extent that they relate to functions so transferred,

13 shall be continued. Orders shall be issued in such

14 proceedings, appeals shall be taken therefrom, and

15 payments shall be made pursuant to such orders, as

16 if this Act had not been enacted; and orders issued

17 in any such proceedings shall continue in effect until

18 modified, terminated, superseded, or revoked by the

19 Commission, by a court of competent jurisdiction, or

20 by operation of law. Nothing in this subsection shall

21 be deemed to prohibit the discontinuance or modi22 fication of any such proceeding under the same

23 terms and conditions and to the same extent that

24 such proceeding could have been discontinued or

25 modified if this Act had not been enacted.
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1 (2) REGULATIONS CONCERNING TRANSFERS.—

2 The Commission is authorized to promulgate regula3 tions providing for the orderly transfer of proceed4 ings continued under paragraph (1) to the Commis5 sion.

6 (c) PENDING LITIGATION.—Except as provided in

7 subsection (e)—

8 (1) the provisions of this Act shall not affect

9 suits commenced prior to the effective date of this

10 Act, and

11 (2) in all such suits, proceedings shall be had,

12 appeals taken, and judgments rendered in the same

13 manner and effect as if this Act had not been en14 acted.

15 (d) NONABATEMENT.—No suit, action, or other pro16 ceeding commenced by or against any officer in the official

17 capacity of such individual as an officer of any department

18 or agency, functions of which are transferred by this Act,

19 shall abate by reason of the enactment of this Act. No

20 cause of action by or against any department or agency,

21 functions of which are transferred by this Act, or by or

22 against any officer thereof in the official capacity of such

23 officer shall abate by reason of the enactment of this Act.

24 (e) SUBSTITUTION OF PARTIES.—If, before the date

25 on which this Act takes effect, any department or agency,
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1 or officer thereof in the official capacity of such officer,

2 is a party to a suit, and under this Act any function of

3 such department, agency, or officer is transferred to the

4 Commission or any other official of the Commission, then

5 such suit shall be continued with the Commission or other

6 appropriate official of the Commission substituted or

7 added as a party.

8 (f) JUDICIAL REVIEW AS REQUIRED BY EXISTING

9 LAW.—Orders and actions of the Commission in the exer10 cise of functions transferred under this Act shall be sub11 ject to judicial review to the same extent and in the same

12 manner as if such orders and actions had been by the

13 agency or office, or part thereof, exercising such functions

14 immediately preceding their transfer. Any statutory re15 quirements relating to notice, hearings, action upon the

16 record, or administrative review that apply to any function

17 transferred by this Act shall apply to the exercise of such

18 function by the Commission.

19 SEC. 506. SEPARABILITY.

20 If any provision of this Act or the application thereof

21 to any person or circumstance is held invalid, neither the

22 remainder of this Act nor the application of such provision

23 to other persons or circumstances shall be affected there24 by.
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1 SEC. 507. REFERENCE.

2 With respect to any function transferred by this Act

3 and exercised on or after the effective date of this Act,

4 reference in any other Federal law to any department,

5 commission, or agency or any officer or office the func6 tions of which are so transferred shall be deemed to refer

7 to the Commission, other official, or component of the

8 Commission to which this Act transfers such functions.

9 SEC. 508. AMENDMENTS.

10 (a) EXECUTIVE SCHEDULE SALARIES.—

11 (1) CHAIRMAN.—Section 5314 of title 5, United

12 States Code, is amended—

13 (A) by striking ‘‘Chairman, Securities and

14 Exchange Commission.’’ and inserting ‘‘Chair15 man, Markets and Trading Commission.’’; and

16 (B) by striking ‘‘Chairman, Commodity

17 Futures Trading Commission.’’.

18 (2) MEMBERS.—Section 5315 of title 5, United

19 States Code, is amended—

20 (A) by striking ‘‘Members, Securities and

21 Exchange Commission’’ and inserting ‘‘Mem22 bers, Markets and Trading Commission’’; and

23 (B) by striking ‘‘Members, Commodity Fu24 tures Trading Commission.’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) SECURITIES EXCHANGE ACT.—Sections 4

2 and 35 of the Securities Exchange Act of 1934 are

3 repealed.

4 (2) COMMODITY EXCHANGE ACT.—Section 2(a)

5 of the Commodity Exchange Act is amended by

6 striking paragraphs (2), (3), and (4).

7 SEC. 509. TRANSITION.

8 With the consent of the appropriate department or

9 agency head concerned, the Commission is authorized to

10 utilize the services of such officers, employees, and other

11 personnel of the departments and agencies from which

12 functions or offices have been transferred to the Commis13 sion, and funds appropriated to such functions or offices

14 for such period of time as may reasonably be needed to

15 facilitate the orderly implementation of this Act.

16 TITLE VI—EFFECTIVE DATE

17 SEC. 601. EFFECTIVE DATE.

18 (a) IN GENERAL.—The provisions of this Act shall

19 take effect 180 days after the first Commissioner takes

20 office, or on any later date on or before October 1, 1995,

21 as the President may prescribe and publish in the Federal

22 Register, except that at any time on or after the date of

23 enactment of this Act—
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1 (1) any of the officers provided for in title II

2 of this Act may be nominated and appointed, as pro3 vided in such title; and

4 (2) the Commission may promulgate regulations

5 pursuant to section 505(b)(2) of this Act.

6 (b) TRANSITION EXPENSES.—Funds available to any

7 department or agency (or any official department or agen8 cy or any official or component thereof), the functions or

9 offices of which are transferred to the Commission by this

10 Act, may, with the approval of the Director of the Office

11 of Management and Budget, be used to pay the compensa12 tion and expenses of any officer appointed pursuant to this

13 title and other transitional and planning expenses associ14 ated with the establishment of the Commission or transfer

15 of functions or offices thereto until such time as funds

16 for such purposes are otherwise available.

Æ

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