Section 1 Short title
This Act may be cited as the “Protection of Source Code Act”.
Protection of Source Code Act
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.
Sec. 2 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:
“(g) Procedure for obtaining certain intellectual property—Under this title, the Commission may not compel a person to produce or furnish source code, including algorithmic trading source code or similar intellectual property that forms the basis for design of 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:
“(e) Procedure for obtaining certain intellectual property—Under this title, the Commission may not compel a person to produce or furnish source code, including algorithmic trading source code or similar intellectual property that forms the basis for design of 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:
“(e) Procedure for obtaining certain intellectual property—Under this title, the Commission may not compel 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 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 redesignating the second subsection (d) (relating to records of persons with custody or use) as subsection (e); and
by adding at the end the following:
“(f) Procedure for obtaining certain intellectual property—Under this title, the Commission may not compel 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 the source code, to the Commission unless the Commission first issues a subpoena.”