117 S3102 IS: Investor Freedom Act of 2021 U.S. Senate 2021-10-28 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.

II117th CONGRESS1st SessionS. 3102IN THE SENATE OF THE UNITED STATESOctober 28, 2021Mr. Toomey introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsA BILLTo amend the Securities Exchange Act of 1934 to preserve commission-free trading and investor freedom for the people of the United States by prohibiting the Securities and Exchange Commission from banning payment for order flow, and for other purposes.

1.

Short title

This Act may be cited as the Investor Freedom Act of 2021.

2.

Safe harbor for payment for order flow

Section 28 of the Securities Exchange Act of 1934 (15 U.S.C. 78bb) is amended by adding at the end the following:(g)

Payment for order flow

(1)

Definition

In this subsection, the term payment for order flow has the meaning given the term in section 240.10b–10(d) of title 17, Code of Federal Regulations, as in effect on the date of enactment of this subsection.(2)

Applicability

(A)

In general

No broker or dealer, or any person associated with a broker or dealer, using the mails, or any means or instrumentality of interstate commerce, shall be deemed to have acted unlawfully or to have breached a duty under State or Federal law solely by reason of having received payment for order flow.(B)

Restriction

Neither the Commission nor any national securities exchange or registered securities association may promulgate any rule or regulation that prohibits, limits, or directs the receipt or use of payment for order flow by— (i)a broker or dealer; or (ii)any person associated with a broker or dealer.(C)

Rule of construction

Nothing in this subsection may be construed to impair or limit the power of the Commission, any national securities exchange, or any registered securities association with respect to any other duties applicable to the execution of a customer’s order by a broker or dealer..