[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 616 Enrolled Bill (ENR)]

        H.R.616
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act

  
 
  To amend the Securities Exchange Act of 1934 to permit members of 
national securities exchanges to effect certain transactions with 
respect to accounts for which such members exercise investment 
discretion.

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

SECTION 1. PROHIBITED TRANSACTIONS.

    Section 11(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
78k(a)(1)) is amended--
        (1) in subparagraph (E), by striking ``(other than an investment 
    company)'';
        (2) by striking ``and'' at the end of subparagraph (G);
        (3) by redesignating subparagraph (H) as subparagraph (I); and
        (4) by inserting after subparagraph (G) the following new 
    subparagraph:
        ``(H) any transaction for an account with respect to which such 
    member or an associated person thereof exercises investment 
    discretion if such member--
            ``(i) has obtained, from the person or persons authorized to 
        transact business for the account, express authorization for 
        such member or associated person to effect such transactions 
        prior to engaging in the practice of effecting such 
        transactions;
            ``(ii) furnishes the person or persons authorized to 
        transact business for the account with a statement at least 
        annually disclosing the aggregate compensation received by the 
        exchange member in effecting such transactions; and
            ``(iii) complies with any rules the Commission has 
        prescribed with respect to the requirements of clauses (i) and 
        (ii); and''.







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.