[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 702 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 702

   To strengthen the prohibitions on insider trading, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 11, 2015

Mr. Reed (for himself and Mr. Menendez) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To strengthen the prohibitions on insider trading, and for other 
                               purposes.

    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 ``Stop Illegal Insider Trading Act''.

SEC. 2. STRENGTHENING THE PROHIBITION ON INSIDER TRADING.

    Section 10 of the Securities Exchange Act of 1934 (15 U.S.C. 78j) 
is amended--
            (1) in the matter immediately preceding the flush text at 
        the end of the section, by inserting at the end the following:
    ``(d)(1)(A) To purchase, sell, or cause the purchase or sale of any 
security on the basis of material information that the person knows or 
has reason to know is not publicly available.
    ``(B) To knowingly or recklessly communicate material information 
that the person knows or has reason to know is not publicly available 
to any other person under circumstances in which it is reasonably 
foreseeable that such communication is likely to result in a violation 
of subparagraph (A).
    ``(2) For purposes of this subsection, the term `not publicly 
available' shall not include information that the person has 
independently developed from publicly available sources.
    ``(3) The Commission may, by rule, exempt any person, transaction, 
or communication, or any class of persons, transactions, or 
communications from the prohibitions under this subsection, if the 
Commission determines that such exemption is necessary or appropriate 
in the public interest and consistent with the protection of investors.
    ``(4) Nothing in this subsection shall be construed to affect 
liability under subsection (b).''; and
            (2) in the flush text at the end of the section--
                    (A) by striking ``Rules promulgated'' and inserting 
                ``Subsection (d) and rules promulgated''; and
                    (B) by inserting ``or subsection (d)'' after 
                ``subsection (b)'' each place that term appears.
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