[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 657 Referred in Senate (RFS)]
1st Session
H. R. 657
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 27, 2003
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To amend the Securities Exchange Act of 1934 to augment the emergency
authority of the Securities and Exchange Commission.
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 ``Emergency Securities Response Act of
2003''.
SEC. 2. EXTENSION OF EMERGENCY ORDER AUTHORITY OF THE SECURITIES
EXCHANGE COMMISSION.
(a) Extension of Authority.--Paragraph (2) of section 12(k) of the
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to
read as follows:
``(2) Emergency orders.--(A) The Commission, in an
emergency, may by order summarily take such action to alter,
supplement, suspend, or impose requirements or restrictions
with respect to any matter or action subject to regulation by
the Commission or a self-regulatory organization under the
securities laws, as the Commission determines is necessary in
the public interest and for the protection of investors--
``(i) to maintain or restore fair and orderly
securities markets (other than markets in exempted
securities);
``(ii) to ensure prompt, accurate, and safe
clearance and settlement of transactions in securities
(other than exempted securities); or
``(iii) to reduce, eliminate, or prevent the
substantial disruption by the emergency of (I)
securities markets (other than markets in exempted
securities), investment companies, or any other
significant portion or segment of such markets, or (II)
the transmission or processing of securities
transactions (other than transactions in exempted
securities).
``(B) An order of the Commission under this paragraph (2)
shall continue in effect for the period specified by the
Commission, and may be extended. Except as provided in
subparagraph (C), the Commission's action may not continue in
effect for more than 30 business days, including extensions.
``(C) An order of the Commission under this paragraph (2)
may be extended to continue in effect for more than 30 business
days if, at the time of the extension, the Commission finds
that the emergency still exists and determines that the
continuation of the order beyond 30 business days is necessary
in the public interest and for the protection of investors to
attain an objective described in clause (i), (ii), or (iii) of
subparagraph (A). In no event shall an order of the Commission
under this paragraph (2) continue in effect for more than 90
calendar days.
``(D) If the actions described in subparagraph (A) involve
a security futures product, the Commission shall consult with
and consider the views of the Commodity Futures Trading
Commission. In exercising its authority under this paragraph,
the Commission shall not be required to comply with the
provisions of section 553 of title 5, United States Code, or
with the provisions of section 19(c) of this title.
``(E) Notwithstanding the exclusion of exempted securities
(and markets therein) from the Commission's authority under
subparagraph (A), the Commission may use such authority to take
action to alter, supplement, suspend, or impose requirements or
restrictions with respect to clearing agencies for transactions
in such exempted securities. In taking any action under this
subparagraph, the Commission shall consult with and consider
the views of the Secretary of the Treasury.''.
(b) Consultation; Definition of Emergency.--Section 12(k) of the
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)) is further amended
by striking paragraph (6) and inserting the following:
``(6) Consultation.--Prior to taking any action described
in paragraph (1)(B), the Commission shall consult with and
consider the views of the Secretary of the Treasury, Board of
Governors of the Federal Reserve System, and the Commodity
Futures Trading Commission, unless such consultation is
impracticable in light of the emergency.
``(7) Definitions.--
``(A) Emergency.--For purposes of this subsection,
the term `emergency' means--
``(i) a major market disturbance
characterized by or constituting--
``(I) sudden and excessive
fluctuations of securities prices
generally, or a substantial threat
thereof, that threaten fair and orderly
markets; or
``(II) a substantial disruption of
the safe or efficient operation of the
national system for clearance and
settlement of transactions in
securities, or a substantial threat
thereof; or
``(ii) a major disturbance that
substantially disrupts, or threatens to
substantially disrupt--
``(I) the functioning of securities
markets, investment companies, or any
other significant portion or segment of
the securities markets; or
``(II) the transmission or
processing of securities transactions.
``(B) Securities laws.--Notwithstanding section
3(a)(47), for purposes of this subsection, the term
`securities laws' does not include the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79a et seq.).''.
SEC. 3. PARALLEL AUTHORITY OF THE SECRETARY OF THE TREASURY WITH
RESPECT TO GOVERNMENT SECURITIES.
Section 15C of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
5) is amended by adding at the end the following new subsection:
``(h) Emergency Authority.--The Secretary may by order take any
action with respect to a matter or action subject to regulation by the
Secretary under this section, or the rules of the Secretary thereunder,
involving a government security or a market therein (or significant
portion or segment of that market), that the Commission may take under
section 12(k)(2) of this title with respect to transactions in
securities (other than exempted securities) or a market therein (or
significant portion or segment of that market).''.
Passed the House of Representatives February 26, 2003.
Attest:
JEFF TRANDAHL,
Clerk.