IB
Union Calendar No. 412
115th CONGRESS
2d Session
H. R. 3948
[Report No. 115–549]
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.
Short title
This Act may be cited as the Protection of Source Code Act
.
Procedure for obtaining certain intellectual property
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:
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.
.
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:
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.
.
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:
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.
.
Investment Advisers
Section 204 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–4) is amended—
by adding at the end the following:
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
in the second subsection (d), by striking (d)
and inserting (e)
.
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