Section 1 Short title
This Act may be cited as the “Exchange Regulatory Improvement Act”.
Exchange Regulatory Improvement Act
A BILL
To amend the Securities Exchange Act of 1934 to provide that the definition of a facility of an exchange does not apply to a line of business the purpose of which is not to effect or report a transaction on an exchange.
Sec. 2 Findings
The Congress finds the following:
Over time, national securities exchanges have expanded their businesses beyond listings and trading to include the sale of additional products and services to their members and listed companies.
The Securities and Exchange Commission should be transparent in its interpretation of the term “facility” in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
Sec. 3 Facility defined
In general— Not later than 360 days after the date of enactment of this Act, the Securities and Exchange Commission (the “Commission”) shall adopt regulations to further interpret the term “facility” under section 3(a) of the Securities Exchange Act of 1934. Such regulations shall set forth the facts and circumstances the Commission considers when determining whether any premises or property, or the right to use any premises, property, or service is or is not a facility of an exchange.
Application to proposed rules— The Commission shall apply the facts and circumstances set forth in the regulations issued pursuant to subsection (a) in determining whether any proposed rule is or is not required to be submitted as a proposed rule filing pursuant to section 19 of the Securities Exchange Act of 1934 and the rules and regulations issued thereunder.