[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 616 Reported in House (RH)]

                                                  Union Calendar No. 34

103d CONGRESS

  1st Session

                               H. R. 616

                          [Report No. 103-76]

_______________________________________________________________________

                                 A BILL

   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.

_______________________________________________________________________

                             April 29, 1993

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed





                                                  Union Calendar No. 34
103d CONGRESS
  1st Session
                                H. R. 616

                          [Report No. 103-76]

   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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1993

    Mr. Markey (for himself and Mr. Fields of Texas) introduced the 
   following bill; which was referred to the Committee on Energy and 
                                Commerce

                             April 29, 1993

                    Additional sponsor: Mr. Moorhead

                             April 29, 1993

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
   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''.