[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3948 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 412
115th CONGRESS
  2d Session
                                H. R. 3948

                          [Report No. 115-549]

 To prohibit the Securities and Exchange Commission from compelling a 
person to produce or furnish algorithmic trading source code or similar 
  intellectual property to the Commission unless the Commission first 
               issues a subpoena, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2017

 Mr. Duffy (for himself, Mr. David Scott of Georgia, and Mr. Hultgren) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

                            February 8, 2018

           Additional sponsors: Mr. Messer and Mr. Gottheimer

                            February 8, 2018

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
                     [Omit the part struck through]


_______________________________________________________________________

                                 A BILL


 
 To prohibit the Securities and Exchange Commission from compelling a 
person to produce or furnish algorithmic trading source code or similar 
  intellectual property to the Commission unless the Commission first 
               issues a subpoena, 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 ``Protection of Source Code Act''.

SEC. 2. PROCEDURE FOR OBTAINING CERTAIN INTELLECTUAL PROPERTY.

    (a) Persons Under Securities Act of 1933.--Section 8 of the 
Securities Act of 1933 (15 U.S.C. 77h) is amended by adding at the end 
the following:
    ``(g) Procedure for Obtaining Certain Intellectual Property.--The 
Commission is not authorized to compel under this title a person to 
produce or furnish source code, including algorithmic trading source 
code or similar intellectual property that forms the basis for design 
of or provides insight to the source code, to the Commission unless the 
Commission first issues a subpoena.''.
    (b) Persons Under the Securities Exchange Act of 1934.--Section 23 
of the Securities Exchange Act of 1934 (15 U.S.C. 78w) is amended by 
adding at the end the following:
    ``(e) Procedure for Obtaining Certain Intellectual Property.--The 
Commission is not authorized to compel under this title a person to 
produce or furnish source code, including algorithmic trading source 
code or similar intellectual property that forms the basis for design 
of or provides insight to the source code, to the Commission unless the 
Commission first issues a subpoena.''.
    (c) Investment Companies.--Section 31 of the Investment Company Act 
of 1940 (15 U.S.C. 80a-30) is amended by adding at the end the 
following:
    ``(e) Procedure for Obtaining Certain Intellectual Property.--The 
Commission is not authorized to compel under this title an investment 
company to produce or furnish source code, including algorithmic 
trading source code or similar intellectual property that forms the 
basis for design of or provides insight to the source code, to the 
Commission unless the Commission first issues a subpoena.''.
    (d) Investment Advisers.--Section 204 of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b-4) is amended--
            (1) by adding at the end the following:
    ``(f) Procedure for Obtaining Certain Intellectual Property.--The 
Commission is not authorized to compel under this title an investment 
adviser to produce or furnish source code, including algorithmic 
trading source code or similar intellectual property that forms the 
basis for design of or provides insight to the source code, to the 
Commission unless the Commission first issues a subpoena.''; and
            (2) in the second subsection (d), by striking ``(d)'' and 
        inserting ``(e)''.
                                                 Union Calendar No. 412

115th CONGRESS

  2d Session

                               H. R. 3948

                          [Report No. 115-549]

_______________________________________________________________________

                                 A BILL

 To prohibit the Securities and Exchange Commission from compelling a 
person to produce or furnish algorithmic trading source code or similar 
  intellectual property to the Commission unless the Commission first 
               issues a subpoena, and for other purposes.

_______________________________________________________________________

                            February 8, 2018

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed