I 
115TH CONGRESS 
1ST SESSION H. R. 3973 
To amend the Securities Exchange Act of 1934 to require certain entities 
to develop internal risk control mechanisms to safeguard and govern 
the storage of market data. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 5, 2017 
Mr. DAVIDSON (for himself and Mr. SHERMAN) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To amend the Securities Exchange Act of 1934 to require 
certain entities to develop internal risk control mecha-
nisms to safeguard and govern the storage of market 
data. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Market Data Protec-
tion Act of 2017’’. 
SEC. 2. INTERNAL RISK CONTROLS. 
The Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.) is amended— 
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(1) by inserting after section 4E the following: 
‘‘SEC. 4F. INTERNAL RISK CONTROLS. 
‘‘(a) IN GENERAL.—Each of the following entities, in 
consultation with the Chief Economist, shall develop com-
prehensive internal risk control mechanisms to safeguard 
and govern the storage of all market data by such entity, 
all market data sharing agreements of such entity, and 
all academic research performed at such entity using mar-
ket data: 
‘‘(1) The Commission. 
‘‘(2) Each national securities association reg-
istered pursuant to section 15A. 
‘‘(3) The operator of the consolidated audit 
trail created by a national market system plan ap-
proved pursuant to section 242.613 of title 17, Code 
of Federal Regulations (or any successor regulation). 
‘‘(b) CONSOLIDATED
AUDIT
TRAIL
PROHIBITED 
FROM ACCEPTING MARKET DATA UNTIL MECHANISMS 
DEVELOPED.—The operator described in paragraph (3) of 
subsection (a) may not accept market data (or shall cease 
accepting market data) until the operator has developed 
the mechanisms required by such subsection. Any require-
ment for a person to provide market data to the operator 
shall not apply during any time when the operator is pro-
hibited by this subsection from accepting such data. 
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‘‘(c) TREATMENT
OF
PREVIOUSLY
DEVELOPED 
MECHANISMS.—The development of comprehensive inter-
nal risk control mechanisms required by subsection (a) 
may occur, in whole or in part, before the date of the en-
actment of this section, if such development and such 
mechanisms meet the requirements of such subsection (in-
cluding consultation with the Chief Economist).’’; and 
(2) in section 3(a)— 
(A) by redesignating the second paragraph 
(80) (relating to funding portals) as paragraph 
(81); and 
(B) by adding at the end the following: 
‘‘(82) CHIEF
ECONOMIST.—The term ‘Chief 
Economist’ means the Director of the Division of 
Economic and Risk Analysis, or an employee of the 
Commission with comparable authority, as deter-
mined by the Commission.’’. 
Æ 
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