Title: Market Data Protection Act of 2017
Policy area: Finance and Financial Sector

Summary:
Market Data Protection Act of 2017
This bill amends the Securities Exchange Act of 1934 to require the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the operator of the consolidated audit trail (a database that tracks trading in equities and options markets) to develop internal risk control mechanisms to protect stored market data.
The operator of the consolidated audit trail may not accept market data until these mechanisms are developed.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3973 Introduced in House (IH)]

<DOC>






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 mechanisms to safeguard and 
                   govern the storage of market data.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Market Data Protection Act of 
2017''.

SEC. 2. INTERNAL RISK CONTROLS.

    The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is 
amended--
            (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 comprehensive 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 market data:
            ``(1) The Commission.
            ``(2) Each national securities association registered 
        pursuant to section 15A.
            ``(3) The operator of the consolidated audit trail created 
        by a national market system plan approved 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 requirement for a person to provide 
market data to the operator shall not apply during any time when the 
operator is prohibited by this subsection from accepting such data.
    ``(c) Treatment of Previously Developed Mechanisms.--The 
development of comprehensive internal risk control mechanisms required 
by subsection (a) may occur, in whole or in part, before the date of 
the enactment of this section, if such development and such mechanisms 
meet the requirements of such subsection (including 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 
        determined by the Commission.''.
                                 <all>