113 HR 3012 IH: Markets and Trading Reorganization Act
U.S. House of Representatives
2013-08-02
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the Markets and Trading Reorganization
Act
.
(b)The table of
contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definition.
Title I—Establishment of commission
Sec. 101. Establishment.
Sec. 102. Members; appointment; terms.
Sec. 103. Organization of Commission.
Title II—Transfers of functions
Sec. 201. Commodity Futures Trading Commission
functions.
Sec. 202. Securities and Exchange Commission
functions.
Title III—Administrative provisions
Sec. 301. Personnel provisions.
Sec. 302. General administrative provisions.
Title IV—Fee and Funding Authority
Sec. 401. Funding authority of the Commission.
Title V—Transitional, savings, and conforming
provisions
Sec. 501. Savings provisions.
Sec. 502. Reference.
Sec. 503. Amendments.
Title VI—Effective date
Sec. 601. Effective date.
2.The purposes of this Act are—
(1)to establish a
single Federal regulatory body with jurisdiction over securities, derivatives,
options, futures, and related markets and instruments;
(2)to coordinate the
regulation of relevant financial markets;
(3)to strengthen
investor confidence in United States financial markets; and
(4)to ensure the
efficiency and competitiveness of those markets.
3.As used in this Act, the term
Commission, other than where expressly referring to the Securities
and Exchange Commission or the Commodity Futures Trading Commission, means the
Securities and Derivatives Commission established by section 101 of this
Act.
<enum>I</enum><header>Establishment of
commission </header>
<section id="HEA81753D38BD4CEDA3C5034D72ACB104"><enum>101.</enum><header>Establishment</header><text display-inline="no-display-inline">There is established an independent
regulatory commission to be known as the Securities and Derivatives
Commission.</text>
</section><section id="H9B48B1D9F39E45C1AA4277AA9DF6DE4E"><enum>102.</enum><header>Members;
appointment; terms</header>
<subsection id="HF4BA37D2D97A4AAEADBC732BEFDA44E8"><enum>(a)</enum><header>Composition of
commission</header><text>The Commission shall be composed of 5 commissioners
appointed by the President, by and with the advice and consent of the Senate.
One of the commissioners shall be designated by the President as chairperson.
Not more than three of such commissioners shall be members of the same
political party. Each commissioner shall be selected solely on the basis of
integrity and demonstrated knowledge of the operations of the markets subject
to the jurisdiction of the Commission.</text>
</subsection><subsection id="HD34AF75C0AD14D5999ADF628D2013835"><enum>(b)</enum><header>Qualifications</header><text>In
appointing commissioners under subsection (a), the President shall—</text>
<paragraph id="H0C3ED9BF03E34CD1A2E1F6682B47DDCB"><enum>(1)</enum><text display-inline="yes-display-inline">select persons who each have demonstrated
knowledge of securities, futures, swaps, or other derivatives, the regulation
of such instruments, or the markets for agricultural or other types of
commodities underlying transactions subject to the oversight of the Commission
under this Act; and</text>
</paragraph><paragraph id="H822C3DCFBC854F72A1A1297CDC84E845"><enum>(2)</enum><text display-inline="yes-display-inline">seek to ensure that the demonstrated
knowledge of the commissioners is balanced with respect to such areas, with at
least one commissioner having knowledge of the agricultural commodities
market.</text>
</paragraph></subsection><subsection id="HC59793D7820C430F8650E088045F764E"><enum>(c)</enum><header>Terms</header><text>Each
commissioner shall be appointed for a term of 5 years, except that a
commissioner may continue to serve after the expiration of such term until a
successor is appointed and has qualified.</text>
<paragraph commented="no" id="H22056B20DDDC4D36A76E0C8BA777D6F9"><enum>(1)</enum><text>The terms of
office of the commissioners first taking office after the enactment of this Act
shall expire, as designated by the President at the time of their
appointment—</text>
<subparagraph commented="no" id="H461C88A6175646E0BE7F62E024C002DE"><enum>(A)</enum><text>one at the end of
1 year;</text>
</subparagraph><subparagraph commented="no" id="HA4A507B672D24441876D43F3E73852A3"><enum>(B)</enum><text>two at the end of
3 years; and</text>
</subparagraph><subparagraph commented="no" id="H73C5685DA5E74E3D9389B80365ADE51B"><enum>(C)</enum><text>two at the end of
5 years.</text>
</subparagraph></paragraph><paragraph commented="no" id="H9A0761917DD842D989842CCB032A164D"><enum>(2)</enum><text>Any commissioner
appointed to fill a vacancy occurring prior to the expiration of the term for
which the predecessor was appointed shall be appointed for the remainder of
such term.</text>
</paragraph></subsection></section><section id="H180CC6FE881B4E0C97F7F9B44974AFB1"><enum>103.</enum><header>Organization of
Commission</header>
<subsection id="H48E716CE1922410DB3350E2067C17E56"><enum>(a)</enum><header>Required
divisions</header><text display-inline="yes-display-inline">The Commission
shall establish the principal divisions and subdivisions of the Commission,
including, at a minimum, the following three divisions:</text>
<paragraph id="H4C287EF198F545718F8D75F117626474"><enum>(1)</enum><text>A
Markets and Trading Division with oversight of market conduct and utilities,
the conduct of market professionals, and self-regulatory organizations with
regard to such market professionals, including related examination
functions.</text>
</paragraph><paragraph id="HDF1FC9EAD6E14AC6B6ACC552530DD0AE"><enum>(2)</enum><text>An Issuers and
Financial Disclosures Division with oversight of the issuance of securities,
including investment companies and related rules and examinations.</text>
</paragraph><paragraph id="HD1BC1DED8F1E43AFA9D602B2C41E408A"><enum>(3)</enum><text>An Enforcement
Division responsible for the enforcement of all rules of the Commission.</text>
</paragraph></subsection><subsection id="H13237910F4EE4DCBA938EC4AC9FECA07"><enum>(b)</enum><header>Other
offices</header><text>The Commission may establish such other offices as it
determines useful in the conduct of the Commission’s affairs.</text>
</subsection></section><enum>II</enum><header>Transfers of
functions </header>
<section id="HB1A86C271798484B9BF897325A4C818F"><enum>201.</enum><header>Commodity
Futures Trading Commission functions</header><text display-inline="no-display-inline">There are transferred to the Commission all
functions of the Commodity Futures Trading Commission and of any officer or
component of the Commodity Futures Trading Commission.</text>
</section><section id="H826389FA80064263834FED9ADB675A67"><enum>202.</enum><header>Securities and
Exchange Commission functions</header><text display-inline="no-display-inline">There are transferred to the Commission all
functions of the Securities and Exchange Commission and of any officer or
component of the Securities and Exchange Commission.</text>
</section><enum>III</enum><header>Administrative
provisions </header>
<section id="H50F839C6785B4C9B9860C54A85875BED"><enum>301.</enum><header>Personnel
provisions</header>
<subsection id="HEE3114B933EF436E984191D5E414428C"><enum>(a)</enum><header>Appointment and
compensation</header><text display-inline="yes-display-inline">The Commission
may appoint and fix the compensation of such officers and employees as may be
necessary to carry out the functions of the Commission. Except as otherwise
provided by law, such officers and employees shall be appointed in accordance
with the civil service laws and the compensation of such employees shall be
fixed in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/4802">section 4802</external-xref> of title 5, United States Code. The
Commission shall, in accordance with such section, adjust the compensation of
employees so that the compensation of employees transferred from the Commodity
Futures Trading Commission pursuant to subsection (b) and the compensation of
employees transferred from the Securities and Exchange Commission under such
subsection are aligned. In making such an adjustment, the Commission shall not
reduce the compensation of any employee.</text>
</subsection><subsection id="H9454F5935D884C9F8D97FF6AFE3A3E6B"><enum>(b)</enum><header>Transfer of
employees</header>
<paragraph id="HB422B483138D47E78013A925EF97FC58"><enum>(1)</enum><header>In
general</header><text>All employees of the Commodity Futures Trading Commission
and the Securities and Exchange Commission shall be transferred to the
Commission. Each employee to be transferred under this subsection shall be
transferred not later than 90 days after the effective date set forth in
section 601.</text>
</paragraph><paragraph id="H083613A2DD984EDF8F5E1BA7A5CB6141"><enum>(2)</enum><header>Employee status
and functions</header>
<subparagraph commented="no" id="HD3811E6446F547BF92D835F96AAA02A5"><enum>(A)</enum><header>Status</header><text>The
transfer of employees under this section shall not affect the status of the
transferred employees as employees of an agency of the United States under any
provision of law. Each transferred employee shall be placed in a position at
the Commission with the same status and tenure as the transferred employee held
on the day before the date on which the employee was transferred.</text>
</subparagraph><subparagraph id="H7DA699A252C2441C9417AA7D32F9E092"><enum>(B)</enum><header>Functions</header><text>To
the extent practicable, each transferred employee shall be placed in a position
at the Commission responsible for the same functions and duties as the
transferred employee had on the day before the date on which the employee was
transferred, in accordance with the expertise and preferences of the
transferred employee.</text>
</subparagraph></paragraph><paragraph id="HD2C6546CFD6F42578B95B834AD7FD793"><enum>(3)</enum><header>Personnel
actions limited</header>
<subparagraph id="HB58F9A40480B4E8381AB5BD394A7F1F5"><enum>(A)</enum><header>Protection</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B),
each transferred employee shall not, during the 3-year period beginning on the
transfer date, be involuntarily separated, or involuntarily reassigned outside
his or her locality pay area.</text>
</subparagraph><subparagraph id="HE7B60EF06587431FBE679C9D27A459E9"><enum>(B)</enum><header>Exceptions</header><text>Subparagraph
(A) does not limit the right of the Commission to—</text>
<clause id="H10A21D62848A44B2A1995492BE90694B"><enum>(i)</enum><text>separate an
employee for cause or for unacceptable performance;</text>
</clause><clause id="H68DED3D3E4804DC09C74EDE6AE6A06E1"><enum>(ii)</enum><text>terminate an
appointment to a position excepted from the competitive service because of its
confidential policy-making, policy-determining, or policy-advocating character;
or</text>
</clause><clause commented="no" id="H90248E33E962421182C17FB8F6C29F7E"><enum>(iii)</enum><text>reassign an
employee outside such employee’s locality pay area when the Commission
determines that the reassignment is necessary for the efficient operation of
the Commission.</text>
</clause></subparagraph></paragraph><paragraph id="H4850F9361E3D4EE780118A57A11D9724"><enum>(4)</enum><header>Pay</header>
<subparagraph id="H67BFCA2956A149178B268388BBD4B694"><enum>(A)</enum><header>Protection</header>
<clause id="H160D4A73E264476A9D83B27E2323F3E7"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), each transferred
employee shall, during the 3-year period beginning on the designated transfer
date, receive pay at a rate equal to not less than the basic rate of pay
(including any geographic differential) that the employee received during the
pay period immediately preceding the date of transfer.</text>
</clause><clause id="H0B36F27E4B3D4F719DDAD401C9C3DA7C"><enum>(ii)</enum><header>Limitation</header><text>Notwithstanding
clause (i), if the employee was receiving a higher rate of basic pay on a
temporary basis (because of a temporary assignment, temporary promotion, or
other temporary action) immediately before the date of transfer, the Commission
may reduce the rate of basic pay on the date on which the rate would have been
reduced but for the transfer, and the protected rate for the remainder of the
3-year period shall be the reduced rate that would have applied, but for the
transfer.</text>
</clause></subparagraph><subparagraph id="H5F054CBDECCA4BB5A000334C1249FD39"><enum>(B)</enum><header>Exceptions</header><text>Subparagraph
(A) does not limit the right of the Commission to reduce the rate of basic pay
of a transferred employee—</text>
<clause id="HB9F15F378B8D40BB9269467752930053"><enum>(i)</enum><text>for
cause or for unacceptable performance; or</text>
</clause><clause id="H83B398D729DE4CC5894B159EF45B7C59"><enum>(ii)</enum><text>with the consent
of the employee.</text>
</clause></subparagraph><subparagraph commented="no" id="HFEFDBA9203364B9DAE51CD2D9A94CD75"><enum>(C)</enum><header>Protection only
while employed</header><text>Subparagraph (A) applies to a transferred employee
only while that employee remains employed by the Commission.</text>
</subparagraph><subparagraph id="HE04FEA79D7664362B6B65B3CC4DA7F06"><enum>(D)</enum><header>Pay increases
permitted</header><text>Subparagraph (A) does not limit the authority of the
Commission to increase the pay of a transferred employee.</text>
</subparagraph></paragraph></subsection></section><section id="H0A25C6AC548947C78D510AFDB0320DB1"><enum>302.</enum><header>General
administrative provisions</header>
<subsection id="H55199E09D3A646B587F0AF1FCA5AFA22"><enum>(a)</enum><header>General
authority</header><text>In carrying out any function transferred by this Act,
the Commission, or any officer or employee of the Commission, may exercise any
authority available by law with respect to such function to the official or
agency from which such function is transferred, and the actions of the
Commission, or any officer or employee of the Commission in exercising such
authority shall have the same force and effect as when exercised by such
official or agency.</text>
</subsection><subsection id="HE898E1EC3EEE4FDBBED226428F7320E6"><enum>(b)</enum><header>Rules</header><text>The
Commission may prescribe such rules and regulations as the Commission
determines necessary or appropriate to administer and manage the functions of
the Commission.</text>
</subsection><subsection id="HBD0136076F0245A2A9027743F0749E3F"><enum>(c)</enum><header>Contracts</header><text>The
Commission may make, enter into, and perform such contracts, grants, leases,
cooperative agreements, or other similar transactions with Federal or other
public agencies (including State and local governments) and private
organizations and persons, and make such payments, by way of advance or
reimbursement, as the Commission may determine necessary or appropriate to
carry out functions of the Commission.</text>
</subsection><subsection id="H2D54D7ECB6FE4802B7A7D3D5CC0C7399"><enum>(d)</enum><header>Regional and
field offices</header><text>The Commission may establish, alter, discontinue,
or maintain such regional or other field offices as the Commission may find
necessary or appropriate to perform functions of the Commission.</text>
</subsection><subsection commented="no" id="HC440D0923D3F4880BA8FD6A52A5D58D6"><enum>(e)</enum><header>Reserve
fund</header><text display-inline="yes-display-inline">The Commission may
obligate amounts in the Reserve Fund established under section 4(i) of the
Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78d">15 U.S.C. 78d(i)</external-xref>), not to exceed a total of
$100,000,000 in any 1 fiscal year, as the Commission determines is necessary to
carry out the functions of the Commission, including those transferred by title
II of this Act. Any amounts in the reserve fund shall remain available until
expended. Not later than 10 days after the date on which the Commission
obligates amounts under this subsection, the Commission shall notify Congress
of the date, amount, and purpose of the obligation.</text>
</subsection></section><enum>IV</enum><header>Fee
and Funding Authority</header>
<section id="H5470700105B440A69AC756309608795C"><enum>401.</enum><header>Funding
authority of the Commission</header>
<subsection id="HCCCBFE7A6BE045988EF0772936A9F4BD"><enum>(a)</enum><header>Commodity
Futures Trading Commission</header><text display-inline="yes-display-inline">Section 12 of the Commodity Exchange Act (7
U.S.C. 16) is amended—</text>
<paragraph id="H0F78F129B98C40D39E4DDF3C768584C7"><enum>(1)</enum><text>in subsection
(b)(1), by striking <quote>and as may be from time to time appropriated for by
Congress</quote>;</text>
</paragraph><paragraph id="H1A3C1FE228AC410D80BA8B790EEAE5C3"><enum>(2)</enum><text>by striking
subsection (d); and</text>
</paragraph><paragraph id="H9BCC756829E4473D8E3D60FB5C18CF97"><enum>(3)</enum><text>in subsection
(f)(3), by striking <quote>Any payment or reimbursement accepted shall be
considered a reimbursement to the appropriated funds of the Commission.</quote>
and inserting <quote>Such payments or reimbursements shall be available to the
Commission without further appropriation.</quote>.</text>
</paragraph></subsection><subsection id="H904D67FAB1DB43D1B1828BBA55939207"><enum>(b)</enum><header>Securities and
Exchange Commission</header><text display-inline="yes-display-inline">Section
31 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78ee">15 U.S.C. 78ee</external-xref>) is amended—</text>
<paragraph id="H776705982C3847C69BD7CA9ADDC319CF"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H9F760B0FF5194824A7EB93FACBBADB8E"><enum>(A)</enum><text>in the heading for
such subsection, by striking <quote><header-in-text level="subsection" style="OLC">Recovery of Costs of Annual Appropriation</header-in-text></quote>
and inserting <quote><header-in-text level="subsection" style="OLC">In
general</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="H48A23D78DE6842B5A7072D61B4A166C8"><enum>(B)</enum><text>by striking
<quote>recover the costs to the Government of the annual appropriation to the
Commission by Congress</quote> and inserting <quote>cover the costs to the
Commission for the supervision and regulation of securities markets and
securities professionals, and use such fees and assessments without further
appropriation</quote>;</text>
</subparagraph></paragraph><paragraph id="H02BE0B4EB21F4CD18438EF168A9BAAA5"><enum>(2)</enum><text>by striking
subsection (i);</text>
</paragraph><paragraph id="H87E9E8EDBB1A4B86A781A4537E98D981"><enum>(3)</enum><text>in subsection
(j)—</text>
<subparagraph id="H5CE94E3E57B045FBA01EB724A92D5E67"><enum>(A)</enum><text>by striking
<quote>regular appropriation to the Commission by Congress</quote> each place
such term appears and inserting <quote>target offsetting collection
amount</quote>; and</text>
</subparagraph><subparagraph id="H41FC51EB08054CDF83063C80E176C747"><enum>(B)</enum><text>by amending
paragraph (4)(A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H59728C9C1D9E49B8A97558139767A273" style="OLC">
<subparagraph id="HC5F62F663A1847D9882E185C5C5CF126"><enum>(A)</enum><header>Annual
adjustment</header><text display-inline="yes-display-inline">An adjusted rate
prescribed under paragraph (1) shall take effect on the first day of the fiscal
year to which such rate applies.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC7F64726F6CA4A1DA8C8835A32E09E7F"><enum>(4)</enum><text>by striking
subsection (k).</text>
</paragraph></subsection></section><enum>V</enum><header>Transitional,
savings, and conforming provisions</header>
<section id="HBAA4C80C2DE0442C8B12909CAB51450E"><enum>501.</enum><header>Savings
provisions</header>
<subsection id="H4CE57B6BC8DF46348E292963DF80C1F6"><enum>(a)</enum><header>Continuity of
legal instruments</header><text>All orders, determinations, rules, regulations,
permits, grants, contracts, certificates, licenses, and privileges—</text>
<paragraph id="H84D9FE4C17544FC6809D5EA7781ED3C8"><enum>(1)</enum><text display-inline="yes-display-inline">which have been issued, made, granted, or
allowed to become effective by the President, the Securities and Exchange
Commission, or the Commodity Futures Trading Commission, or any component
thereof, or by a court of competent jurisdiction, in the performance of
functions which are transferred under this Act to the Commission, and</text>
</paragraph><paragraph id="H176519AA7AC448F69BAAF2C24E3A33E9"><enum>(2)</enum><text>which are in
effect at the time this Act takes effect,</text>
</paragraph><continuation-text continuation-text-level="subsection">shall
continue in effect according to their terms until modified, terminated,
superseded, set aside, or revoked in accordance with the law by the President,
the Commission, or other authorized official, a court of competent
jurisdiction, or by operation of law.</continuation-text></subsection><subsection id="H689FA4C777F048C2B9CF29CC98DD8B1D"><enum>(b)</enum><header>Continuity of
proceedings</header>
<paragraph id="H98D187F07D1B45DE9139EED586724CFE"><enum>(1)</enum><header>In
general</header><text>The provisions of this Act shall not affect any
proceedings, including notices of proposed rulemaking, or any application for
any license, permit, certificate, or financial assistance pending on the
effective date of this Act before either the Securities and Exchange Commission
or the Commodity Futures Trading Commission, or any component thereof,
functions of which are transferred by this Act. Such proceedings and
applications, to the extent that they relate to functions so transferred, shall
be continued. Orders shall be issued in such proceedings, appeals shall be
taken therefrom, and payments shall be made pursuant to such orders, as if this
Act had not been enacted and orders issued in any such proceedings shall
continue in effect until modified, terminated, superseded, or revoked by the
Commission, by a court of competent jurisdiction, or by operation of law.
Nothing in this subsection shall be construed to prohibit the discontinuance or
modification of any such proceeding under the same terms and conditions and to
the same extent that such proceeding could have been discontinued or modified
if this Act had not been enacted.</text>
</paragraph><paragraph id="HE20648C1CFE0437A9E81A846008CBB63"><enum>(2)</enum><header>Regulations
concerning transfers</header><text>The Commission may prescribe regulations
providing for the orderly transfer of proceedings continued under paragraph (1)
to the Commission.</text>
</paragraph></subsection><subsection id="HC6D08725C9D54692B1CF98184545DD81"><enum>(c)</enum><header>Pending
litigation</header><text>Except as provided in subsection (e)—</text>
<paragraph id="HF1098EB6F769485A932A85EC037607B8"><enum>(1)</enum><text>the provisions of
this Act shall not affect suits commenced prior to the effective date of this
Act; and</text>
</paragraph><paragraph id="H2C2BCEF8403447C58C74D3521087A406"><enum>(2)</enum><text>in all such suits,
proceedings shall be had, appeals taken, and judgments rendered in the same
manner and effect as if this Act had not been enacted.</text>
</paragraph></subsection><subsection id="H17255215A4014BE4A9843E1667D7B9DA"><enum>(d)</enum><header>Nonabatement</header><text display-inline="yes-display-inline">No suit, action, or other proceeding
commenced by or against any officer in the official capacity of such individual
as an officer of the Securities and Exchange Commission or the Commodity
Futures Trading Commission, or any component thereof, functions of which are
transferred by this Act, shall abate by reason of the enactment of this Act. No
cause of action by or against any department or agency, functions of which are
transferred by this Act, or by or against any officer thereof in the official
capacity of such officer shall abate by reason of the enactment of this
Act.</text>
</subsection><subsection id="H49FD050C146D40A1ADA40EAE876C10D8"><enum>(e)</enum><header>Substitution of
parties</header><text display-inline="yes-display-inline">If, before the date
on which this Act takes effect, the Securities and Exchange Commission or the
Commodity Futures Trading Commission, or any component thereof, or officer
thereof in the official capacity of such officer, is a party to a suit, and
under this Act any function of such department, agency, or officer is
transferred to the Commission or any other official of the Commission, then
such suit shall be continued with the Commission or other appropriate official
of the Commission substituted or added as a party.</text>
</subsection><subsection id="HA1BE6718E7564F4F93944B6A6DB542E1"><enum>(f)</enum><header>Judicial review
as required by existing law</header><text>Orders and actions of the Commission
in the exercise of functions transferred under this Act shall be subject to
judicial review to the same extent and in the same manner as if such orders and
actions had been by the agency or office, or part thereof, exercising such
functions immediately preceding their transfer. Any statutory requirements
relating to notice, hearings, action upon the record, or administrative review
that apply to any function transferred by this Act shall apply to the exercise
of such function by the Commission.</text>
</subsection></section><section id="H8A5FCBFDBD6C42FCB03451F8B3C3EE4A"><enum>502.</enum><header>Reference</header><text display-inline="no-display-inline">Any reference in any other Federal law to
the Securities and Exchange Commission or the Commodity Futures Trading
Commission shall be deemed a reference to the Securities and Derivatives
Commission established by this Act.</text>
</section><section id="H192027FAB00B4ED9ACE9CFEDAA72C4DF"><enum>503.</enum><header>Amendments</header>
<subsection id="HA12A2B9CECDB4E488035ACB257B13F37"><enum>(a)</enum><header>Executive
schedule salaries</header>
<paragraph id="H33833D28C0AA4234A49E83D439DAA91E"><enum>(1)</enum><header>Chairperson</header><text>Section
5314 of title 5, United States Code, is amended—</text>
<subparagraph id="H8D20B3C303F748EC9A620791F3550E91"><enum>(A)</enum><text>by striking
<quote>Chairman, Securities and Exchange Commission.</quote> and inserting
<quote>Chairperson, Securities and Derivatives Commission.</quote>; and</text>
</subparagraph><subparagraph id="H5B5BFA42DD2F4798AEDD04DB17A15E4F"><enum>(B)</enum><text>by striking
<quote>Chairman, Commodity Futures Trading Commission.</quote>.</text>
</subparagraph></paragraph><paragraph id="H8471FF76E12140A6BBA4E5A6A0F6FEB6"><enum>(2)</enum><header>Members</header><text>Section
5315 of title 5, United States Code, is amended—</text>
<subparagraph id="H0A1A22F0B80144DEA5ED9A8DFDF996ED"><enum>(A)</enum><text>by striking
<quote>Members, Securities and Exchange Commission</quote> and inserting
<quote>Members, Securities and Derivatives Commission</quote>; and</text>
</subparagraph><subparagraph id="H2FC0952A16C34885B40E8F15D981D2EB"><enum>(B)</enum><text>by striking
<quote>Members, Commodity Futures Trading Commission.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H255E8098142B445689D372073943AC54"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HED31A70DB5EE4DE3BAF389ED8CC5DAAE"><enum>(1)</enum><header>Securities
exchange act</header><text>Sections 4(a) of the Securities Exchange Act of 1934
(<external-xref legal-doc="usc" parsable-cite="usc/15/78d">15 U.S.C. 78d(a)</external-xref>) is amended—</text>
<subparagraph id="H124AB9739447436B818C83E147897301"><enum>(A)</enum><text>by striking
<quote>There is hereby established a Securities and Exchange Commission
(hereinafter referred to as the <term>Commission</term>) to be composed of five
commissioners to be appointed by the President by and with the advice and
consent of the Senate. Not more than three of such commissioners shall be
members of the same political party, and in making appointments members of
different political parties shall be appointed alternately as nearly as may be
practicable.</quote>; and</text>
</subparagraph><subparagraph id="H5A223308016D4580BB9D1E8FD2BAF6A7"><enum>(B)</enum><text>by striking
<quote>Each commissioner shall hold office for a term of five years and until
his successor is appointed and has qualified, except that he shall not so
continue to serve beyond the expiration of the next session of Congress
subsequent to the expiration of said fixed term of office, and except (1) any
commissioner appointed to fill a vacancy occurring prior to the expiration of
the term for which his predecessor was appointed shall be appointed for the
remainder of such term, and (2) the terms of office of the commissioners first
taking office after the enactment of this title shall expire as designated by
the President at the time of nomination, one at the end of one year, one at the
end of two years, one at the end of three years, one at the end of four years,
and one at the end of five years, after the date of the enactment of this
title.</quote>.</text>
</subparagraph></paragraph><paragraph id="HA560B7827283409FA4CCD52B26E1648F"><enum>(2)</enum><header>Commodity
exchange act</header><text>Section 2(a) of the Commodity Exchange Act (7 U.S.C.
2a) is amended by striking paragraphs (2), (3), and (4).</text>
</paragraph><paragraph id="HC746D70BB1D3480BAA07F537DE1691DD"><enum>(3)</enum><header>Dodd-Frank</header><text display-inline="yes-display-inline">Section 111(b)(1) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5321">12 U.S.C. 5321(b)(1)</external-xref>) is
amended—</text>
<subparagraph id="HDF6F406B9B114E719A0A7636B261F951"><enum>(A)</enum><text>by amending
subparagraph (E) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0DBB38A59A4745FAAF25AC99460E3CA2" style="OLC">
<subparagraph id="HE83A20A4C3684DAFB8ECE558CE6F3BE8"><enum>(E)</enum><text display-inline="yes-display-inline">the Chairperson of the Securities and
Derivatives
Commission;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF17F3E06AA464368B9238ABC84800C74"><enum>(B)</enum><text>by striking
subparagraph (G); and</text>
</subparagraph><subparagraph id="HEA94B4D982874E2E87AC757BA27544A3"><enum>(C)</enum><text>by redesignating
subparagraphs (H), (I), and (J) as subparagraphs (G), (H), and (I),
respectively.</text>
</subparagraph></paragraph></subsection></section><enum>VI</enum><header>Effective
date</header>
<section id="HA5225558E87548ACBE9EA461FE3DEF3D"><enum>601.</enum><header>Effective
date</header><text display-inline="no-display-inline">The provisions of this
Act shall take effect 1 year after the date of enactment of this Act, except
that the President may nominate and the Senate confirm Commissioners prior to
such date.</text>
</section>