IIB
106TH CONGRESS
1ST SESSION
H. R. 1400
IN THE SENATE OF THE UNITED STATES
JUNE 15, 1999
Received; read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
AN ACT
To amend the Securities Exchange Act of 1934 to improve
collection and dissemination of information concerning
bond prices and to improve price competition in bond
markets, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 1400 RFS
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Bond Price Competi-
tion 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 appro-
priate, 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 collec-
HR 1400 RFS
tion and distribution of transaction information on
corporate debt securities.
‘‘(2) EFFECT ON OTHER AUTHORITY.—Nothing
in this subsection limits or otherwise alters the Com-
mission’s authority under the other provisions of this
section or any other provision of this title.
‘‘(3) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) COVERED
DEBT
SECURITIES.—The
term ‘covered debt securities’ means bonds, de-
bentures, 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 re-
quirements of this subsection.
‘‘(B) TRANSACTION
INFORMATION.—The
term ‘transaction information’ means informa-
tion concerning such price, volume, and yield
information associated with a transaction in-
volving the purchase or sale of a covered debt
security as may be prescribed by the Commis-
sion by rule for purposes of this subsection.
‘‘(C) FACTORS IN DEFINITIONAL RULES.—
In prescribing rules pursuant to this paragraph,
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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 rel-
evant 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 sec-
tion)’’.
(c) DEADLINE FOR ACTION.—The Securities and Ex-
change Commission shall take action to implement the re-
quirements of section 11A(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78k–1(d)), as amended by sub-
section (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 securi-
ties shall, for purposes of any provision of this title or the
HR 1400 RFS
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 ex-
change.’’.
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 securi-
ties, 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 in-
formation is collected but not disseminated pursuant
to section 11A(d) of the Securities Exchange Act of
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1934, as amended by this Act (15 U.S.C. 78k–1(d));
and
(2) in municipal securities (as such term is de-
fined 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 sub-
section (a)(2) in consultation with the Securities and Ex-
change Commission and the Municipal Securities Rule-
making Board.
(c) SUBMISSION
OF REPORTS.—The Comptroller
General shall submit to the Congress a report on the stud-
ies 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.