117 HR 6632 IH: To except quotations of fixed-income securities from certain regulatory requirements, and for other purposes. U.S. House of Representatives 2022-02-07 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.

I117th CONGRESS2d SessionH. R. 6632IN THE HOUSE OF REPRESENTATIVESFebruary 7, 2022Mr. Kustoff introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo except quotations of fixed-income securities from certain regulatory requirements, and for other purposes.

1.

Findings

Congress finds the following:(1)On September 16, 2020, the Securities and Exchange Commission adopted a final rule amending Rule 15c2–11 under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) which addresses disclosures in the OTC markets and imposes requirements upon broker-dealers who publish quotations in such markets.(2)Rule 15c2–11 was promulgated in 1971, and has generally been understood to apply to OTC equity markets since that time.(3)The amendments to Rule 15c2–11 were based on the economic analysis of OTC equity markets.(4)The fixed-income markets are different in structure and function than OTC equity markets.(5)The fixed-income markets are critical to the ability of thousands of corporations’ ability to raise capital, and millions of consumers to obtain credit.(6)On December 16, 2021, the Securities and Exchange Commission issued a No-Action Letter purporting to apply Rule 15c2–11 to fixed-income markets in a manner that made significant changes to long-standing regulatory requirements, without a rulemaking process, without analysis of the costs and benefits of the action, and without regard for the input of the public.

2.

Exception relating to quotations of fixed-income securities

Section 240.15c2–11 of title 17, Code of Federal Regulations, shall not apply with respect to quotations of fixed-income securities.