117 HR 8617 IH: Exchange Regulatory Improvement Act of 2022 U.S. House of Representatives 2022-07-29 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. 8617IN THE HOUSE OF REPRESENTATIVESJuly 29, 2022Mr. Loudermilk (for himself and Mr. David Scott of Georgia) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo amend the Securities Exchange Act of 1934 to revise the definition of a facility.

1.

Short title

This Act may be cited as the Exchange Regulatory Improvement Act of 2022.

2.

Definition of a facility

Paragraph (2) of section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended to read as follows:(2)

Facility

(A)

In general

The term facility, when used with respect to an exchange, means—(i)the exchange’s trading systems, which are—(I)the hardware, software, and related network infrastructure an exchange uses to receive, acknowledge, rank, match, and execute orders in securities traded on that exchange; and(II)the hardware, software, and related network infrastructure an exchange uses to function as the exclusive processor of market data created by the exchange trading systems; (ii)any premises or services made available to an exchange member or other person for the purpose of providing physical space and equipment to enable such member or other person to locate the equipment of the member or other person in close physical proximity to the exchange’s trading systems; and(iii)any premises or services made available by the exchange to an exchange member or persons associated with members that exclusively connects such members and persons associated with members to exchange trading systems for the purpose of effecting or reporting a transaction on the exchange.(B)

Exception

The term facility, when used with respect to an exchange, does not include any service that—(i)does not fall within the scope of clauses (i) through (iii) of subparagraph (A); and(ii)can legally be offered by a person or entity that is not an exchange registered under section 6..