,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #aagc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,febru>y #bg1 #bjae   
,mr4 ,lyn* introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,f9ancial   
,s]vices  ,a ,,bill  ,to am5d !         
,securities ,ex*ange ,act ( #aicd to    
prohibit trad+ on mat]ial inside        
in=mation4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,ban ,insid] ,trad+ ,act
 ( #bjae4  #b4 ,prohibit+ trad+ on      
mat]ial inside in=mation  7a7 ,9 g5]al  
,section #aj ( ! ,securities ,ex*ange   
,act ( #aicd 7#ae ,u4,s4,c4 #gh;j7 is   
am5d$ by ins]t+ aft] subsection 7c7 !   
foll[+3  7d7 ,trad+ on mat]ial inside   
in=mation  7#a7 ,9 g5]al ,to pur*ase or 
sell any security1 or any               
securities-bas$ swap agreem5t1 bas$ on  
in=mation t ! p]son kn[s or1 consid]+   
factors includ+ f9ancial sophi/ication1 
k ( & exp]i5ce 9 f9ancial matt]s1       
position 9 a company1 & am\nt ( assets  
"u managem5t1 %\ld "k is mat]ial        
in=mation & inside in=mation4  7#b7     

,rules ( con/ruction ,no?+ 9 ?is        
subsection may be con/ru$-- 7,a7 to     
affect liability "u subsection 7b72 or  
7,b7 to require = an action "u p>agraph 
7#a7 a p]sonal b5efit to any p>ty4  7#c7
 ,def9itions ,9 ?is subsection3  7,a7   
,inside in=mation ,! t]m inside         
in=mation means in=mation t is-- 7i7    
nonpublic2 &  7ii7 obta9$-- 7,i7        
illegally2  7,,ii7 directly or          
indirectly f an issu] ) an expectation (
 confid5tiality or t su* in=mation w    
only be us$ = a legitimate bus9ess      
purposes2 or  7,,iii7 9 violation ( a   
fiduci>y duty4  7,b7 ,mat]ial in=mation 
,! t]m mat]ial in=mation means in=mation
 t relates1 directly or indirectly1 to  
an issu] or a security1 & t1 if x 7 made
 public1 w\ld be likely to h a          
significant effect on ! price ( a       
security4  4  7b7 ,liability = disclos+ 
mat]ial inside in=mation ,section       
#bj7;e7 ( ! ,securities ,ex*ange ,act ( 
#aicd 7#ae ,u4,s4,c4 #ght7e77 is am5d$--
 7#a7 by /rik+ 7e7 & all t foll[s ?r\gh 

,= & ins]t+ ! foll[+3  7e7 ,prosecution 
( p]sons :o aid & abet violations  7#a7 
,9 g5]al ,=  2 &  7#b7 by add+ at ! end 
! foll[+3  7#b7 ,prosecution ( p]sons :o
 facilitate violations ( section #aj7;d7
 ,a p]son %all be deem$ to h violat$    
section #aj7;d7 if ! p]son int5tionally 
discloses )\t a legitimate bus9ess      
purpose to ano!r p]son in=mation t !    
disclos] kn[s or1 consid]+ factors      
includ+ f9ancial sophi/ication1 k ( &   
exp]i5ce 9 f9ancial matt]s1 position 9 a
 company1 & am\nt ( assets "u managem5t1
 %\ld "k is mat]ial in=mation & inside  
in=mation1 z su* t]ms are def9$1        
respectively1 9 section #aj7;d77#c74  4 
7c7 ,te*nical am5dm5t ,section #aj ( !  
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;j7 is am5d$ 9 ! matt]     
prec$+ subsection 7a7 by /rik+ ex*ange--
 & ins]t+ ex*ange34