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Title II — Protection of Source Code

H.R. 3978 · 115th Congress · Feb 15, 2018 · Lineage

II Protection of Source Code

Sec. 201 Procedure for obtaining certain intellectual property

(a)
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:

“(g) Procedure for obtaining certain intellectual property—The Commission is not authorized to compel under this title a person to produce or furnish algorithmic trading source code or similar intellectual property that forms the basis for design of the algorithmic trading source code, to the Commission unless the Commission first issues a subpoena.”

(b)
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:

“(e) Procedure for obtaining certain intellectual property—The Commission is not authorized to compel under this title a person to produce or furnish algorithmic trading source code or similar intellectual property that forms the basis for design of the algorithmic trading source code, to the Commission unless the Commission first issues a subpoena.”

(c)
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:

“(e) Procedure for obtaining certain intellectual property—The Commission is not authorized to compel under this title an investment company to produce or furnish algorithmic trading source code or similar intellectual property that forms the basis for design of the algorithmic trading source code, to the Commission unless the Commission first issues a subpoena.”

(d)
Investment Advisers— Section 204 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–4) is amended—
(1)
by adding at the end the following:

“(f) Procedure for obtaining certain intellectual property—The Commission is not authorized to compel under this title an investment adviser to produce or furnish algorithmic trading source code or similar intellectual property that forms the basis for design of the algorithmic trading source code, to the Commission unless the Commission first issues a subpoena.”

(2)
in the second subsection (d), by striking “(d)” and inserting “(e)”.