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Union Calendar No. 170
107TH CONGRESS
1ST SESSION
H. R. 3060
[Report No. 107–283]
To amend the Securities Exchange Act of 1934 to augment the emergency
authority of the Securities and Exchange Commission.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 9, 2001
Mr. OXLEY (for himself, Mr. LAFALCE, Mr. BAKER, and Mr. KANJORSKI) in-
troduced the following bill; which was referred to the Committee on Fi-
nancial Services
NOVEMBER 13, 2001
Addtional sponsor: Mr. SHERMAN
NOVEMBER 13, 2001
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
A BILL
To amend the Securities Exchange Act of 1934 to augment
the emergency authority of the Securities and Exchange
Commission.
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 ‘‘Emergency Securities
Response Act of 2001’’.
SEC. 2. EXTENSION OF EMERGENCY ORDER AUTHORITY OF
THE SECURITIES EXCHANGE COMMISSION.
(a) EXTENSION OF AUTHORITY.—Paragraph (2) of
section 12(k) of the Securities Exchange Act of 1934 (15
U.S.C. 78l(k)(2)) is amended to read as follows:
‘‘(2) EMERGENCY ORDERS.—(A) The Commis-
sion, in an emergency, may by order summarily take
such action to alter, supplement, suspend, or impose
requirements or restrictions with respect to any mat-
ter or action subject to regulation by the Commis-
sion or a self-regulatory organization under the secu-
rities laws, as the Commission determines is nec-
essary in the public interest and for the protection
of investors—
‘‘(i) to maintain or restore fair and orderly
securities markets (other than markets in ex-
empted securities);
‘‘(ii) to ensure prompt, accurate, and safe
clearance and settlement of transactions in se-
curities (other than exempted securities); or
‘‘(iii) to reduce, eliminate, or prevent the
substantial disruption by the emergency of (I)
securities markets, investment companies, or
(iii) of subparagraph (A). In no event shall an order
of the Commission under this paragraph (2) con-
tinue in effect for more than 90 calendar days.’’.
(b) DEFINITION OF EMERGENCY.—Paragraph (6) of
section 12(k) of the Securities Exchange Act of 1934 (15
U.S.C. 78l(k)(6)) is amended to read as follows:
‘‘(6) DEFINITION
OF
EMERGENCY.—For pur-
poses of this subsection, the term ‘emergency’
means—
‘‘(A) a major market disturbance charac-
terized by or constituting—
‘‘(i) sudden and excessive fluctuations
of securities prices generally, or a substan-
tial threat thereof, that threaten fair and
orderly markets; or
‘‘(ii) a substantial disruption of the
safe or efficient operation of the national
system for clearance and settlement of
transactions in securities, or a substantial
threat thereof; or
‘‘(B) a major disturbance that substan-
tially disrupts, or threatens to substantially
disrupt—
‘‘(i) the functioning of securities mar-
kets, investment companies, or any other
significant portion or segment of the secu-
rities markets; or
‘‘(ii) the transmission or processing of
securities transactions.’’.
Union Calendar No. 170
107TH CONGRESS
1ST SESSION
H. R. 3060
[Report No. 107–283]
A BILL
To amend the Securities Exchange Act of 1934 to
augment the emergency authority of the Securi-
ties and Exchange Commission.
NOVEMBER 13, 2001
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed