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To amend the Securities Exchange Act of 1934 to prohibit trading ahead by market makers, and for other purposes.
12/31/2022, 5:05 AM
Summary of Bill HR 4619
Bill 117 HR 4619, also known as the "Prohibition of Trading Ahead by Market Makers Act," aims to amend the Securities Exchange Act of 1934 in order to prevent market makers from engaging in trading ahead practices.
Trading ahead occurs when a market maker trades securities for their own benefit before executing orders on behalf of their clients, potentially leading to unfair advantages and conflicts of interest. This bill seeks to address this issue by prohibiting market makers from engaging in such practices.
The bill also includes provisions for increased transparency and accountability within the securities market, with the goal of promoting fair and efficient trading practices. By implementing these measures, the bill aims to protect investors and ensure a level playing field for all participants in the market. Overall, Bill 117 HR 4619 represents a significant step towards enhancing the integrity and fairness of the securities market by addressing the issue of trading ahead by market makers.
Trading ahead occurs when a market maker trades securities for their own benefit before executing orders on behalf of their clients, potentially leading to unfair advantages and conflicts of interest. This bill seeks to address this issue by prohibiting market makers from engaging in such practices.
The bill also includes provisions for increased transparency and accountability within the securities market, with the goal of promoting fair and efficient trading practices. By implementing these measures, the bill aims to protect investors and ensure a level playing field for all participants in the market. Overall, Bill 117 HR 4619 represents a significant step towards enhancing the integrity and fairness of the securities market by addressing the issue of trading ahead by market makers.
Congressional Summary of HR 4619
This bill creates specified duties for market makers—individuals and firms that buy and sell securities, such as brokerage houses—and sets forth penalties for violations of those duties. Specifically, the bill establishes for market makers a duty of trust and loyalty to the customer upon receipt of an order and deems the information in the order as material, non-public information. Furthermore, the Chief Executive Officer of a market maker must annually certify compliance with such responsibilities. The bill establishes civil and criminal penalties for violations.
Read the Full Bill
Current Status of Bill HR 4619
Bill HR 4619 is currently in the status of Bill Introduced since July 22, 2021. Bill HR 4619 was introduced during Congress 117 and was introduced to the House on July 22, 2021. Bill HR 4619's most recent activity was Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 27 - 22. as of July 29, 2021
Bipartisan Support of Bill HR 4619
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
4Democrat Cosponsors
4Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 4619
Primary Policy Focus
Finance and Financial SectorPotential Impact Areas
- Civil actions and liability
- Corporate finance and management
- Financial services and investments
- Securities
Alternate Title(s) of Bill HR 4619
To amend the Securities Exchange Act of 1934 to prohibit trading ahead by market makers, and for other purposes.
To amend the Securities Exchange Act of 1934 to prohibit trading ahead by market makers, and for other purposes.
Comments
Sponsors and Cosponsors of HR 4619
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