,,ib  ,union ,cal5d> ,no4 #beb  #aac?   
,,congress  #b;d ,session  ,h4 ,r4 #cddh
  ,report ,no4 #aac-cdb  ,,9 ,,! ,,h\se 
,,( ,,repres5tatives  ,novemb] #ab1     
#bjac ,mr4 ,duffy 7= himself & ,mr4     
,c>ney7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,febru>y #e1 #bjad ,additional
 sponsor3 ,mr4 ,f9*]  ,febru>y #e1 #bjad
 ,report$ ) an am5dm5t1 committ$ to !   
,committee ( ! ,:ole ,h\se on ! ,/ate ( 
! ,union1 & ord]$ to be pr9t$ ,/rike out
 all aft] ! enact+ clause & ins]t ! "p  
pr9t$ 9 italic ,= text ( introduc$ bill1
 see copy ( bill z introduc$ on ,novemb]
 #ab1 #bjac  ,a ,,bill  ,to am5d !      
,securities ,ex*ange ,act ( #aicd to    
provide = an optional pilot program     
all[+ c]ta9 em]g+ gr[? companies to     
increase ! tick sizes ( _! /ocks4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,small ,cap ,liquidity ,re=m ,act (     
#bjac4  #b4 ,liquidity pilot program =  
securities ( c]ta9 em]g+ gr[? companies 
7a7 ,9 g5]al ,section #aa;,a7c77#f7 ( ! 

,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #ghk-#a7;c77#f77 is am5d$ to  
read z foll[s3  7#f7 ,liquidity pilot   
program = securities ( c]ta9 em]g+ gr[? 
companies  7,a7 ,quot+ increm5t ,beg9n+ 
on ! date t is #ij days aft] ! date ( ! 
enactm5t ( ! ,small ,cap ,liquidity     
,re=m ,act ( #bjac1 ! securities ( a    
cov]$ em]g+ gr[? company %all be quot$  
us+--  7i7 a m9imum increm5t ( #j4je2 or
  7ii7 if1 n lat] ?an #fj days aft] su* 
date ( enactm5t1 ! company s elects 9 ! 
mann] describ$ 9 subp>agraph 7,d7--     
7,i7 a m9imum increm5t ( #j4aj2 or      
7,,ii7 ! increm5t at :i* su* securities 
w\ld be quot$ )\t reg>d to ! m9imum     
increm5ts e/abli%$ "u ?is p>agraph4     
7,b7 ,trad+ increm5t ,9 ! case ( a cov]$
 em]g+ gr[? company ! securities ( :i*  
are quot$ at a m9imum increm5t ( #j4je  
or #j4aj "u ?is p>agraph1 ! ,commission 
%all det]m9e ! increm5t at :i* !        
securities ( su* company are trad$4     
7,c7 ,future "r to opt out or *ange     
m9imum increm5t  7i7 ,9 g5]al ,at any "t

 beg9n+ on ! date t is #ij days aft] !  
date ( ! enactm5t ( ! ,small ,cap       
,liquidity ,re=m ,act ( #bjac1 a cov]$  
em]g+ gr[? company ! securities ( :i*   
are quot$ at a m9imum increm5t ( #j4je  
or #j4aj "u ?is p>agraph may elect 9 !  
mann] describ$ 9 subp>agraph 7,d7--     
7,i7 = ! securities ( su* company to be 
quot$ at ! increm5t at :i* su*          
securities w\ld be quot$ )\t reg>d to ! 
m9imum increm5ts e/abli%$ "u ?is        
p>agraph2 or  7,,ii7 to *ange ! m9imum  
increm5t at :i* ! securities ( su*      
company are quot$ f #j4je to #j4aj or f 
#j4aj to #j4je4  7ii7 ,:5 election      
effective ,an election "u ?is           
subp>agraph %all take effect on ! date t
 is #cj days aft] su* election is made4 
7iii7 ,s+le election to *ange m9imum    
increm5t ,a cov]$ em]g+ gr[? company may
 n make m ?an "o election "u clause     
7i77,,ii74  7,d7 ,mann] ( election  7i7 
,9 g5]al ,an election is made 9 ! mann] 
describ$ 9 ?is subp>agraph by in=m+ !   
,commission ( su* election4  7ii7       

,notification ( ex*anges & o!r trad+    
v5ues ,^u be+ in=m$ ( an election "u    
clause 7i71 ! ,commission %all notify   
ea* ex*ange or o!r trad+ v5ue :]e !     
securities ( ! cov]$ em]g+ gr[? company 
are quot$ or trad$4  7,e7 ,issu]s ceas+ 
to be cov]$ em]g+ gr[? companies  7i7 ,9
 g5]al ,if an issu] ! securities ( :i*  
are quot$ at a m9imum increm5t ( #j4je  
or #j4aj "u ?is p>agraph ceases to be a 
cov]$ em]g+ gr[? company1 ! securities (
 su* issu] %all be quot$ at ! increm5t  
at :i* su* securities w\ld be quot$ )\t 
reg>d to ! m9imum increm5ts e/abli%$ "u 
?is p>agraph4  7ii7 ,exceptions ,!      
,commission may by regulation1 z !      
,commission consid]s appropriate1       
specify any circum/ances "u :i* an issu]
 %all cont9ue to be consid]$ a cov]$    
em]g+ gr[? company = purposes ( ?is     
p>agraph aft] ! issu] ceases to meet !  
requirem5ts ( subp>agraph 7,l77i74  7,f7
 ,securities trad+ bel[ #a  7i7 ,initial
 price  7,i7 ,at effective date ,if !   
trad+ price ( ! securities ( a cov]$    

em]g+ gr[? company is bel[ #a at ! close
 ( ! la/ trad+ day be=e ! date t is #ij 
days aft] ! date ( ! enactm5t ( ! ,small
 ,cap ,liquidity ,re=m ,act ( #bjac1 !  
securities ( su* company %all be quot$  
us+ ! increm5t at :i* su* securities    
w\ld be quot$ )\t reg>d to ! m9imum     
increm5ts e/abli%$ "u ?is p>agraph4     
7,,ii7 ,at ,,ipo ,if a cov]$ em]g+ gr[? 
company makes an initial public (f]+    
aft] ! day describ$ 9 subclause 7,i7 & !
 fir/ %>e ( ! securities ( su* company  
is (f]$ to ! public at a price bel[ #a1 
! securities ( su* company %all be quot$
 us+ ! increm5t at :i* su* securities   
w\ld be quot$ )\t reg>d to ! m9imum     
increm5ts e/abli%$ "u ?is p>agraph4     
7ii7 ,av]age trad+ price ,if ! av]age   
trad+ price ( ! securities ( a cov]$    
em]g+ gr[? company falls bel[ #a = any  
#ij-;day p]iod beg9n+ on or aft] ! day  
be=e ! date ( ! enactm5t ( ! ,small ,cap
 ,liquidity ,re=m ,act ( #bjac1 !       
securities ( su* company %all1 aft] !   
end ( su* p]iod1 be quot$ us+ ! increm5t

 at :i* su* securities w\ld be quot$ )\t
 reg>d to ! m9imum increm5ts e/abli%$ "u
 ?is p>agraph4  7,g7 ,fraud or          
manipulation ,if ! ,commission det]m9es 
t a cov]$ em]g+ gr[? company has violat$
 any provision ( ! securities laws      
prohibit+ fraudul5t1 manipulative1 or   
deceptive acts or practices1 !          
securities ( su* company %all1 aft] !   
date ( ! det]m9ation1 be quot$ us+ !    
increm5t at :i* su* securities w\ld be  
quot$ )\t reg>d to ! m9imum increm5ts   
e/abli%$ "u ?is p>agraph4  7,h7         
,ineligibility = increas$ m9imum        
increm5t p]man5t ,! securities ( an     
issu] may n be quot$ at a m9imum        
increm5t ( #j4je or #j4aj "u ?is        
p>agraph at any "t aft]--  7i7 su* issu]
 makes an election "u subp>agraph       
7,a77ii77,,ii72  7ii7 su* issu] makes an
 election "u subp>agraph 7,c77i77,i71   
except dur+ ! p]iod be=e su* election   
takes effect2 or  7iii7 ! securities (  
su* issu] are requir$ by ?is p>agraph to
 be quot$ us+ ! increm5t at :i* su*     

securities w\ld be quot$ )\t reg>d to ! 
m9imum increm5ts e/abli%$ "u ?is        
p>agraph4  7,i7 ,additional reports &   
disclosures ,! ,commission %all require 
a cov]$ em]g+ gr[? company ! securities 
( :i* are quot$ at a m9imum increm5t (  
#j4je or #j4aj "u ?is p>agraph to make  
su* reports & disclosures z !           
,commission consid]s necess>y or        
appropriate 9 ! public int]e/ or = !    
protection ( inve/ors4  7,j7 ,limitation
 ( liability ,an issu] 7or any (fic]1   
director1 manag]1 or o!r ag5t ( su*     
issu]7 %all n be liable to any p]son    
7o!r ?an su* issu]7 "u any law or       
regulation ( ! ,unit$ ,/ates1 any       
con/itution1 law1 or regulation ( any   
,/ate or political subdivision !re(1 or 
any contract or o!r legally en=ceable   
agreem5t 7includ+ any arbitration       
agreem5t7 = any losses caus$ solely by !
 quot+ ( ! securities ( su* issu] at a  
m9imum increm5t ( #j4je or #j4aj1 by !  
trad+ ( su* securities at ! increm5t    
det]m9$ by ! ,commission "u subp>agraph 

7,b71 or by bo? su* quot+ & trad+1 z    
provid$ 9 ?is p>agraph4  7,k7 ,report to
 ,congress ,n lat] ?an #f mon?s aft] !  
date ( ! enactm5t ( ! ,small ,cap       
,liquidity ,re=m ,act ( #bjac1 & e #f   
mon?s !reaft]1 ! ,commission1 9         
coord9ation ) ea* ex*ange on :i* !      
securities ( cov]$ em]g+ gr[? companies 
are quot$ or trad$1 %all submit to      
,congress a report on ! quot+ & trad+ ( 
securities 9 increm5ts p]mitt$ by ?is   
p>agraph & ! ext5t to :i* su* quot+ &   
trad+ are increas+ liquidity & active   
trad+ by inc5tiviz+ capital commitm5t1  
rese>* cov]age1 & brok]age support1     
toge!r ) any legislative recomm5dations 
! ,commission may h4  7,l7 ,def9itions  
,9 ?is p>agraph3  7i7 ,cov]$ em]g+ gr[? 
company ,! t]m cov]$ em]g+ gr[? company 
means an em]g+ gr[? company1 z def9$ 9 !
 fir/ p>agraph 7#hj7 ( section #c7;a71  
except t--  7,i7 su* p>agraph %all be   
appli$ by sub/itut+ #gej1jjj1jjj =      
#a1jjj1jjj1jjj ea* place x appe>s2 &    
7,,ii7 subp>agraphs 7,b71 7,c71 & 7,d7 (

 su* p>agraph d n apply4  7ii7 ,security
 ,! t]m security means an equity        
security4  7,m7 ,sav+s provision        
,not)/&+ any o!r provision ( ?is        
p>agraph1 ! ,commission may--  7i7 make 
su* adju/m5ts to ! pilot program        
specifi$ 9 ?is p>agraph z ! ,commission 
consid]s necess>y or appropriate to     
ensure t su* program c provide          
/ati/ically mean+ful or reliable        
results1 includ+ adju/m5ts to elim9ate  
selection bias among p>ticipants1 exp& !
 numb] ( p>ticipants eligible to        
p>ticipate 9 su* program1 & *ange !     
duration ( su* program = "o or m        
p>ticipants2 &  7ii7 conduct any o!r    
/udy or pilot program1 9 conjunction )  
or sep>ate f ! pilot program specifi$ 9 
?is p>agraph 7z su* program may be      
adju/$ pursuant to clause 7i771 to      
evaluate quot+ or trad+ 9 v>i\s m9imum  
increm5ts4  4  7b7 ,sunset ,effective on
 ! date t is #e ye>s aft] ! date ( !    
enactm5t ( ?is ,act1 section            
#aa;,a7c77#f7 ( ! ,securities ,ex*ange  

,act ( #aicd 7#ae ,u4,s4,c4             
#ghk-#a7;c77#f77 is repeal$4  ,febru>y  
#e1 #bjad ,report$ ) an am5dm5t1        
committ$ to ! ,committee ( ! ,:ole ,h\se
 on ! ,/ate ( ! ,union1 & ord]$ to be   
pr9t$