To except quotations of fixed-income securities from certain regulatory requirements, and for other purposes.

Bill: 117-hr-6632
Sponsor: full_name: Rep. Kustoff, David [R-TN-8]
Introduced: 2022-02-07
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-02-07
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2022-02-07
action_desc: Introduced in House
text: <p>This bill excepts quotations of fixed-income securities from rules requiring broker-dealers to review issuer information for accuracy before providing quotations for that issuer's security in the over-the-counter securities market. Fixed-income securities, such as bonds, provide returns in fixed periodic interest payments and return the principal at maturity.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 6632 IN THE HOUSE OF REPRESENTATIVES February 7, 2022 Mr. Kustoff introduced the following bill; which was referred to the Committee on Financial Services A BILL To except quotations of fixed-income securities from certain regulatory requirements, and for other purposes.

1. Findings Congress finds the following: (1) On September 16, 2020, the Securities and Exchange Commission adopted a final rule amending Rule 15c2–11 under the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ) which addresses disclosures in the OTC markets and imposes requirements upon broker-dealers who publish quotations in such markets. (2) Rule 15c2–11 was promulgated in 1971, and has generally been understood to apply to OTC equity markets since that time. (3) The amendments to Rule 15c2–11 were based on the economic analysis of OTC equity markets. (4) The fixed-income markets are different in structure and function than OTC equity markets. (5) The fixed-income markets are critical to the ability of thousands of corporations’ ability to raise capital, and millions of consumers to obtain credit. (6) On December 16, 2021, the Securities and Exchange Commission issued a No-Action Letter purporting to apply Rule 15c2–11 to fixed-income markets in a manner that made significant changes to long-standing regulatory requirements, without a rulemaking process, without analysis of the costs and benefits of the action, and without regard for the input of the public. 2. Exception relating to quotations of fixed-income securities Section 240.15c2–11 of title 17, Code of Federal Regulations, shall not apply with respect to quotations of fixed-income securities.