TICKER Act

To amend the Securities Exchange Act of 1934 to require national securities exchanges to identify issuers that are consolidated variable interest entities, and for other purposes. 1. Short title This Act may be cited as the Trading and Investing with Clear Knowledge and Expectations about Risk Act TICKER Act 2. Sense of Congress It is the sense of Congress that— (1) variable interest entities based in foreign jurisdictions, including the People’s Republic of China, pose a specific and significant risk to investors in the United States, including because investors that purchase shares of those entities— (A) have no equity or direct ownership interest; and (B) lack legal recourse; and (2) investors in the United States should more clearly be made aware of the risk described in paragraph (1) in a transparent, easily accessible, and standardized manner that is recognizable to all persons that have invested, or seek to invest, in entities that are described in that paragraph and are listed on exchanges in the United States, such as through clearly visible warning indicators on ticker symbols and other company symbols used by those exchanges. 3. Identification of risk with respect to certain entities (a) Definitions In this section— (1) the terms broker dealer exchange security 15 U.S.C. 78c(a) (2) the term Commission (3) the term covered entity (4) the term national securities exchange 15 U.S.C. 78f (5) the term variable interest entity (b) Requirements (1) National securities exchanges (A) In general Section 6(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78f(b) (11) (A) In this paragraph, the term covered entity Trading and Investing with Clear Knowledge and Expectations about Risk Act (B) The rules of the exchange require the identification of each covered entity, the securities of which are listed on the exchange, as a covered entity in the symbol for the covered entity used on the exchange. . (B) Effective date; applicability The amendment made by subparagraph (A) shall— (i) take effect on the date that is 180 days after the date of enactment of this Act; and (ii) apply with respect to a covered entity, the securities of which are listed on a national securities exchange on or after the date described in clause (i). (2) Brokers and dealers Beginning not later than 180 days after the date of enactment of this Act, the Commission shall require brokers and dealers to provide warnings to investors investing in covered entities that those investors may lack legal recourse with respect to such an investment.

Summary: Trading and Investing with Clear Knowledge and Expectations about Risk Act or the TICKER Act This bill requires the identification of consolidated variable interest entities on securities exchanges. Specifically, the symbol used on the exchange must identify these entities as consolidated variable interest entities. (A consolidated variable interest entity is a business structure where an investor holds a controlling interest in an entity through contractual agreements rather than having a majority of voting rights.) In addition, the Securities and Exchange Commission must require brokers and dealers to warn investors in these entities that those investors may lack legal recourse with respect to these investments.