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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Emergency Securities 
Response Act of 2003’’. 
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 (other than markets in ex-
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empted securities), investment companies, or 
any other significant portion or segment of such 
markets, or (II) the transmission or processing 
of securities transactions (other than trans-
actions in exempted securities). 
‘‘(B) An order of the Commission under this 
paragraph (2) shall continue in effect for the period 
specified by the Commission, and may be extended. 
Except as provided in subparagraph (C), the Com-
mission’s action may not continue in effect for more 
than 30 business days, including extensions. 
‘‘(C) An order of the Commission under this 
paragraph (2) may be extended to continue in effect 
for more than 30 business days if, at the time of the 
extension, the Commission finds that the emergency 
still exists and determines that the continuation of 
the order beyond 30 business days is necessary in 
the public interest and for the protection of investors 
to attain an objective described in clause (i), (ii), 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. 
‘‘(D) If the actions described in subparagraph 
(A) involve a security futures product, the Commis-
sion shall consult with and consider the views of the
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Commodity Futures Trading Commission. In exer-
cising its authority under this paragraph, the Com-
mission shall not be required to comply with the pro-
visions of section 553 of title 5, United States Code, 
or with the provisions of section 19(c) of this title. 
‘‘(E) Notwithstanding the exclusion of exempt-
ed securities (and markets therein) from the Com-
mission’s authority under subparagraph (A), the 
Commission may use such authority to take action 
to alter, supplement, suspend, or impose require-
ments or restrictions with respect to clearing agen-
cies for transactions in such exempted securities. In 
taking any action under this subparagraph, the 
Commission shall consult with and consider the 
views of the Secretary of the Treasury.’’. 
(b) CONSULTATION; DEFINITION OF EMERGENCY.—
Section 12(k) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(k)) is further amended by striking paragraph 
(6) and inserting the following: 
‘‘(6) CONSULTATION.—Prior to taking any ac-
tion described in paragraph (1)(B), the Commission 
shall consult with and consider the views of the Sec-
retary of the Treasury, Board of Governors of the 
Federal Reserve System, and the Commodity Fu-
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tures Trading Commission, unless such consultation 
is impracticable in light of the emergency. 
‘‘(7) DEFINITIONS.—
‘‘(A) EMERGENCY.—For purposes of this 
subsection, the term ‘emergency’ means—
‘‘(i) a major market disturbance char-
acterized by or constituting—
‘‘(I) sudden and excessive fluc-
tuations of securities prices generally, 
or a substantial 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 set-
tlement of transactions in securities, 
or a substantial threat thereof; or 
‘‘(ii) a major disturbance that sub-
stantially disrupts, or threatens to substan-
tially disrupt—
‘‘(I) the functioning of securities 
markets, investment companies, or 
any other significant portion or seg-
ment of the securities markets; or 
‘‘(II) the transmission or proc-
essing of securities transactions.
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‘‘(B) SECURITIES LAWS.—Notwithstanding 
section 3(a)(47), for purposes of this sub-
section, the term ‘securities laws’ does not in-
clude the Public Utility Holding Company Act 
of 1935 (15 U.S.C. 79a et seq.).’’. 
SEC. 3. PARALLEL AUTHORITY OF THE SECRETARY OF THE 
TREASURY WITH RESPECT TO GOVERNMENT 
SECURITIES. 
Section 15C of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–5) is amended by adding at the end the 
following new subsection: 
‘‘(h) EMERGENCY AUTHORITY.—The Secretary may 
by order take any action with respect to a matter or action 
subject to regulation by the Secretary under this section, 
or the rules of the Secretary thereunder, involving a gov-
ernment security or a market therein (or significant por-
tion or segment of that market), that the Commission may 
take under section 12(k)(2) of this title with respect to 
transactions in securities (other than exempted securities) 
or a market therein (or significant portion or segment of 
that market).’’.
Passed the House of Representatives February 26, 
2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.