,i #aacth ,,congress #ast ,session ,h4 ,r4 #cjab ,,in ,,the ,,house ,,of ,,representatives ,august #b1 #bjac ,mr4 ,capuano 7for himself1 ,mr4 ,lynch1 ,mr4 ,himes1 and ,mr4 ,delaney7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,agriculture1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish the ,securities and ,derivatives ,commission in order to combine the functions of the ,commodity ,futures ,trading ,commission and the ,securities and ,exchange ,commission in a single independent regulatory commission4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,markets and ,trading ,reorganization ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,purposes4 ,sec4 #c4 ,definition4 ,title ,i--,establishment of commission ,sec4 #aja4 ,establishment4 ,sec4 #ajb4 ,members2 appointment2 terms4 ,sec4 #ajc4 ,organization of ,commission4 ,title ,,ii--,transfers of functions ,sec4 #bja4 ,commodity ,futures ,trading ,commission functions4 ,sec4 #bjb4 ,securities and ,exchange ,commission functions4 ,title ,,iii--,administrative provisions ,sec4 #cja4 ,personnel provisions4 ,sec4 #cjb4 ,general administrative provisions4 ,title ,,iv--,fee and ,funding ,authority ,sec4 #dja4 ,funding authority of the ,commission4 ,title ,v--,transitional1 savings1 and conforming provisions ,sec4 #eja4 ,savings provisions4 ,sec4 #ejb4 ,reference4 ,sec4 #ejc4 ,amendments4 ,title ,,vi--,effective date ,sec4 #fja4 ,effective date4 #b4 ,purposes ,the purposes of this ,act are-- 7#a7 to establish a single ,federal regulatory body with jurisdiction over securities1 derivatives1 options1 futures1 and related markets and instruments2 7#b7 to coordinate the regulation of relevant financial markets2 7#c7 to strengthen investor confidence in ,united ,states financial markets2 and 7#d7 to ensure the efficiency and competitiveness of those markets4 #c4 ,definition ,as used in this ,act1 the term ,commission1 other than where expressly referring to the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 means the ,securities and ,derivatives ,commission established by section #aja of this ,act4 ,i ,establishment of commission #aja4 ,establishment ,there is established an independent regulatory commission to be known as the ,securities and ,derivatives ,commission4 #ajb4 ,members2 appointment2 terms 7a7 ,composition of commission ,the ,commission shall be composed of #e commissioners appointed by the ,president1 by and with the advice and consent of the ,senate4 ,one of the commissioners shall be designated by the ,president as chairperson4 ,not more than three of such commissioners shall be members of the same political party4 ,each commissioner shall be selected solely on the basis of integrity and demonstrated knowledge of the operations of the markets subject to the jurisdiction of the ,commission4 7b7 ,qualifications ,in appointing commissioners under subsection 7a71 the ,president shall-- 7#a7 select persons who each have demonstrated knowledge of securities1 futures1 swaps1 or other derivatives1 the regulation of such instruments1 or the markets for agricultural or other types of commodities underlying transactions subject to the oversight of the ,commission under this ,act2 and 7#b7 seek to ensure that the demonstrated knowledge of the commissioners is balanced with respect to such areas1 with at least one commissioner having knowledge of the agricultural commodities market4 7c7 ,terms ,each commissioner shall be appointed for a term of #e years1 except that a commissioner may continue to serve after the expiration of such term until a successor is appointed and has qualified4 7#a7 ,the terms of office of the commissioners first taking office after the enactment of this ,act shall expire1 as designated by the ,president at the time of their appointment-- 7,a7 one at the end of #a year2 7,b7 two at the end of #c years2 and 7,c7 two at the end of #e years4 7#b7 ,any commissioner appointed to fill a vacancy occurring prior to the expiration of the term for which the predecessor was appointed shall be appointed for the remainder of such term4 #ajc4 ,organization of ,commission 7a7 ,required divisions ,the ,commission shall establish the principal divisions and subdivisions of the ,commission1 including1 at a minimum1 the following three divisions3 7#a7 ,a ,markets and ,trading ,division with oversight of market conduct and utilities1 the conduct of market professionals1 and self-regulatory organizations with regard to such market professionals1 including related examination functions4 7#b7 ,an ,issuers and ,financial ,disclosures ,division with oversight of the issuance of securities1 including investment companies and related rules and examinations4 7#c7 ,an ,enforcement ,division responsible for the enforcement of all rules of the ,commission4 7b7 ,other offices ,the ,commission may establish such other offices as it determines useful in the conduct of the ,commission's affairs4 ,,ii ,transfers of functions #bja4 ,commodity ,futures ,trading ,commission functions ,there are transferred to the ,commission all functions of the ,commodity ,futures ,trading ,commission and of any officer or component of the ,commodity ,futures ,trading ,commission4 #bjb4 ,securities and ,exchange ,commission functions ,there are transferred to the ,commission all functions of the ,securities and ,exchange ,commission and of any officer or component of the ,securities and ,exchange ,commission4 ,,iii ,administrative provisions #cja4 ,personnel provisions 7a7 ,appointment and compensation ,the ,commission may appoint and fix the compensation of such officers and employees as may be necessary to carry out the functions of the ,commission4 ,except as otherwise provided by law1 such officers and employees shall be appointed in accordance with the civil service laws and the compensation of such employees shall be fixed in accordance with section #dhjb of title #e1 ,united ,states ,code4 ,the ,commission shall1 in accordance with such section1 adjust the compensation of employees so that the compensation of employees transferred from the ,commodity ,futures ,trading ,commission pursuant to subsection 7b7 and the compensation of employees transferred from the ,securities and ,exchange ,commission under such subsection are aligned4 ,in making such an adjustment1 the ,commission shall not reduce the compensation of any employee4 7b7 ,transfer of employees 7#a7 ,in general ,all employees of the ,commodity ,futures ,trading ,commission and the ,securities and ,exchange ,commission shall be transferred to the ,commission4 ,each employee to be transferred under this subsection shall be transferred not later than #ij days after the effective date set forth in section #fja4 7#b7 ,employee status and functions 7,a7 ,status ,the transfer of employees under this section shall not affect the status of the transferred employees as employees of an agency of the ,united ,states under any provision of law4 ,each transferred employee shall be placed in a position at the ,commission with the same status and tenure as the transferred employee held on the day before the date on which the employee was transferred4 7,b7 ,functions ,to the extent practicable1 each transferred employee shall be placed in a position at the ,commission responsible for the same functions and duties as the transferred employee had on the day before the date on which the employee was transferred1 in accordance with the expertise and preferences of the transferred employee4 7#c7 ,personnel actions limited 7,a7 ,protection ,except as provided in subparagraph 7,b71 each transferred employee shall not1 during the #c-year period beginning on the transfer date1 be involuntarily separated1 or involuntarily reassigned outside his or her locality pay area4 7,b7 ,exceptions ,subparagraph 7,a7 does not limit the right of the ,commission to-- 7i7 separate an employee for cause or for unacceptable performance2 7ii7 terminate an appointment to a position excepted from the competitive service because of its confidential policy-making1 policy-determining1 or policy-advocating character2 or 7iii7 reassign an employee outside such employee's locality pay area when the ,commission determines that the reassignment is necessary for the efficient operation of the ,commission4 7#d7 ,pay 7,a7 ,protection 7i7 ,in general ,except as provided in clause 7ii71 each transferred employee shall1 during the #c-year period beginning on the designated transfer date1 receive pay at a rate equal to not less than the basic rate of pay 7including any geographic differential7 that the employee received during the pay period immediately preceding the date of transfer4 7ii7 ,limitation ,notwithstanding clause 7i71 if the employee was receiving a higher rate of basic pay on a temporary basis 7because of a temporary assignment1 temporary promotion1 or other temporary action7 immediately before the date of transfer1 the ,commission may reduce the rate of basic pay on the date on which the rate would have been reduced but for the transfer1 and the protected rate for the remainder of the #c-year period shall be the reduced rate that would have applied1 but for the transfer4 7,b7 ,exceptions ,subparagraph 7,a7 does not limit the right of the ,commission to reduce the rate of basic pay of a transferred employee-- 7i7 for cause or for unacceptable performance2 or 7ii7 with the consent of the employee4 7,c7 ,protection only while employed ,subparagraph 7,a7 applies to a transferred employee only while that employee remains employed by the ,commission4 7,d7 ,pay increases permitted ,subparagraph 7,a7 does not limit the authority of the ,commission to increase the pay of a transferred employee4 #cjb4 ,general administrative provisions 7a7 ,general authority ,in carrying out any function transferred by this ,act1 the ,commission1 or any officer or employee of the ,commission1 may exercise any authority available by law with respect to such function to the official or agency from which such function is transferred1 and the actions of the ,commission1 or any officer or employee of the ,commission in exercising such authority shall have the same force and effect as when exercised by such official or agency4 7b7 ,rules ,the ,commission may prescribe such rules and regulations as the ,commission determines necessary or appropriate to administer and manage the functions of the ,commission4 7c7 ,contracts ,the ,commission may make1 enter into1 and perform such contracts1 grants1 leases1 cooperative agreements1 or other similar transactions with ,federal or other public agencies 7including ,state and local governments7 and private organizations and persons1 and make such payments1 by way of advance or reimbursement1 as the ,commission may determine necessary or appropriate to carry out functions of the ,commission4 7d7 ,regional and field offices ,the ,commission may establish1 alter1 discontinue1 or maintain such regional or other field offices as the ,commission may find necessary or appropriate to perform functions of the ,commission4 7e7 ,reserve fund ,the ,commission may obligate amounts in the ,reserve ,fund established under section #d7;i7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;d7i771 not to exceed a total of #ajj1jjj1jjj in any #a fiscal year1 as the ,commission determines is necessary to carry out the functions of the ,commission1 including those transferred by title ,,ii of this ,act4 ,any amounts in the reserve fund shall remain available until expended4 ,not later than #aj days after the date on which the ,commission obligates amounts under this subsection1 the ,commission shall notify ,congress of the date1 amount1 and purpose of the obligation4 ,,iv ,fee and ,funding ,authority #dja4 ,funding authority of the ,commission 7a7 ,commodity ,futures ,trading ,commission ,section #ab of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #af7 is amended-- 7#a7 in subsection 7b77#a71 by striking and as may be from time to time appropriated for by ,congress2 7#b7 by striking subsection 7d72 and 7#c7 in subsection 7f77#c71 by striking ,any payment or reimbursement accepted shall be considered a reimbursement to the appropriated funds of the ,commission4 and inserting ,such payments or reimbursements shall be available to the ,commission without further appropriation44 7b7 ,securities and ,exchange ,commission ,section #ca of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;ee7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the heading for such subsection1 by striking ,recovery of ,costs of ,annual ,appropriation and inserting ,in general2 and 7,b7 by striking recover the costs to the ,government of the annual appropriation to the ,commission by ,congress and inserting cover the costs to the ,commission for the supervision and regulation of securities markets and securities professionals1 and use such fees and assessments without further appropriation2 7#b7 by striking subsection 7i72 7#c7 in subsection 7j7-- 7,a7 by striking regular appropriation to the ,commission by ,congress each place such term appears and inserting target offsetting collection amount2 and 7,b7 by amending paragraph 7#d77;,a7 to read as follows3 7,a7 ,annual adjustment ,an adjusted rate prescribed under paragraph 7#a7 shall take effect on the first day of the fiscal year to which such rate applies4 2 and 7#d7 by striking subsection 7k74 ,v ,transitional1 savings1 and conforming provisions #eja4 ,savings provisions 7a7 ,continuity of legal instruments ,all orders1 determinations1 rules1 regulations1 permits1 grants1 contracts1 certificates1 licenses1 and privileges-- 7#a7 which have been issued1 made1 granted1 or allowed to become effective by the ,president1 the ,securities and ,exchange ,commission1 or the ,commodity ,futures ,trading ,commission1 or any component thereof1 or by a court of competent jurisdiction1 in the performance of functions which are transferred under this ,act to the ,commission1 and 7#b7 which are in effect at the time this ,act takes effect1 shall continue in effect according to their terms until modified1 terminated1 superseded1 set aside1 or revoked in accordance with the law by the ,president1 the ,commission1 or other authorized official1 a court of competent jurisdiction1 or by operation of law4 7b7 ,continuity of proceedings 7#a7 ,in general ,the provisions of this ,act shall not affect any proceedings1 including notices of proposed rulemaking1 or any application for any license1 permit1 certificate1 or financial assistance pending on the effective date of this ,act before either the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 or any component thereof1 functions of which are transferred by this ,act4 ,such proceedings and applications1 to the extent that they relate to functions so transferred1 shall be continued4 ,orders shall be issued in such proceedings1 appeals shall be taken therefrom1 and payments shall be made pursuant to such orders1 as if this ,act had not been enacted and orders issued in any such proceedings shall continue in effect until modified1 terminated1 superseded1 or revoked by the ,commission1 by a court of competent jurisdiction1 or by operation of law4 ,nothing in this subsection shall be construed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this ,act had not been enacted4 7#b7 ,regulations concerning transfers ,the ,commission may prescribe regulations providing for the orderly transfer of proceedings continued under paragraph 7#a7 to the ,commission4 7c7 ,pending litigation ,except as provided in subsection 7e7-- 7#a7 the provisions of this ,act shall not affect suits commenced prior to the effective date of this ,act2 and 7#b7 in all such suits1 proceedings shall be had1 appeals taken1 and judgments rendered in the same manner and effect as if this ,act had not been enacted4 7d7 ,nonabatement ,no suit1 action1 or other proceeding commenced by or against any officer in the official capacity of such individual as an officer of the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 or any component thereof1 functions of which are transferred by this ,act1 shall abate by reason of the enactment of this ,act4 ,no cause of action by or against any department or agency1 functions of which are transferred by this ,act1 or by or against any officer thereof in the official capacity of such officer shall abate by reason of the enactment of this ,act4 7e7 ,substitution of parties ,if1 before the date on which this ,act takes effect1 the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission1 or any component thereof1 or officer thereof in the official capacity of such officer1 is a party to a suit1 and under this ,act any function of such department1 agency1 or officer is transferred to the ,commission or any other official of the ,commission1 then such suit shall be continued with the ,commission or other appropriate official of the ,commission substituted or added as a party4 7f7 ,judicial review as required by existing law ,orders and actions of the ,commission in the exercise of functions transferred under this ,act shall be subject to judicial review to the same extent and in the same manner as if such orders and actions had been by the agency or office1 or part thereof1 exercising such functions immediately preceding their transfer4 ,any statutory requirements relating to notice1 hearings1 action upon the record1 or administrative review that apply to any function transferred by this ,act shall apply to the exercise of such function by the ,commission4 #ejb4 ,reference ,any reference in any other ,federal law to the ,securities and ,exchange ,commission or the ,commodity ,futures ,trading ,commission shall be deemed a reference to the ,securities and ,derivatives ,commission established by this ,act4 #ejc4 ,amendments 7a7 ,executive schedule salaries 7#a7 ,chairperson ,section #ecad of title #e1 ,united ,states ,code1 is amended-- 7,a7 by striking ,chairman1 ,securities and ,exchange ,commission4 and inserting ,chairperson1 ,securities and ,derivatives ,commission42 and 7,b7 by striking ,chairman1 ,commodity ,futures ,trading ,commission44 7#b7 ,members ,section #ecae of title #e1 ,united ,states ,code1 is amended-- 7,a7 by striking ,members1 ,securities and ,exchange ,commission and inserting ,members1 ,securities and ,derivatives ,commission2 and 7,b7 by striking ,members1 ,commodity ,futures ,trading ,commission44 7b7 ,conforming amendments 7#a7 ,securities exchange act ,sections #d7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;d7a77 is amended-- 7,a7 by striking ,there is hereby established a ,securities and ,exchange ,commission 7hereinafter referred to as the ,commission7 to be composed of five commissioners to be appointed by the ,president by and with the advice and consent of the ,senate4 ,not more than three of such commissioners shall be members of the same political party1 and in making appointments members of different political parties shall be appointed alternately as nearly as may be practicable42 and 7,b7 by striking ,each commissioner shall hold office for a term of five years and until his successor is appointed and has qualified1 except that he shall not so continue to serve beyond the expiration of the next session of ,congress subsequent to the expiration of said fixed term of office1 and except 7#a7 any commissioner appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term1 and 7#b7 the terms of office of the commissioners first taking office after the enactment of this title shall expire as designated by the ,president at the time of nomination1 one at the end of one year1 one at the end of two years1 one at the end of three years1 one at the end of four years1 and one at the end of five years1 after the date of the enactment of this title44 7#b7 ,commodity exchange act ,section #b7;a7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #b;a7 is amended by striking paragraphs 7#b71 7#c71 and 7#d74 7#c7 ,dodd-,frank ,section #aaa7;b77#a7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecba7;b77#a77 is amended-- 7,a7 by amending subparagraph 7,e7 to read as follows3 7,e7 the ,chairperson of the ,securities and ,derivatives ,commission2 2 7,b7 by striking subparagraph 7,g72 and 7,c7 by redesignating subparagraphs 7,h71 7,i71 and 7,j7 as subparagraphs 7,g71 7,h71 and 7,i71 respectively4 ,,vi ,effective date #fja4 ,effective date ,the provisions of this ,act shall take effect #a year after the date of enactment of this ,act1 except that the ,president may nominate and the ,senate confirm ,commissioners prior to such date4