,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #abaf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #c1 #bjae ,mr4   
,lyn* 7= himself1 ,mr4 ,capuano1 ,mr4   
,ellison1 & ,mr4 ,h9ojosa7 introduc$ !  
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to require ! ,securities &     
,ex*ange ,commission to c>ry out a pilot
 program to exam9e mak]-tak] pric+1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,mak]-,tak] ,conflict (
 ,int]e/ ,re=m ,act ( #bjae4  #b4 ,pilot
 program to exam9e mak]-tak] pric+  7a7 
,9 g5]al ,n lat] ?an #ij days aft] !    
date ( ! enactm5t ( ?is ,act1 !         
,securities & ,ex*ange ,commission %all 
beg9 a #f-mon? pilot program to exam9e (
 mak]-tak] pric+1 "u :i* ! ,commission  
%all--  7#a7 id5tify a r&om sample ( #ej
 issu]s 7! sample gr\p7 out ( ! #ajj    
issu]s ) ! mo/ frequ5tly-trad$          
securities2  7#b7 dur+ su* #f-mon?      
p]iod1 prohibit ! paym5t ( rebates 7or  
comp>able inducem5ts7 on any trade (    

securities ( ! issu]s 9 ! sample gr\p2 &
  7#c7 comp>e ! effects ( su*           
prohibition on ! issu]s 9 ! sample gr\p 
comp>$ to ! #ej issu]s n s *os5 7!      
control gr\p74  7b7 ,report  7#a7 ,9    
g5]al ,n lat] ?an #f mon?s aft] ! end ( 
! program requir$ "u subsection 7a71 !  
,commission %all issue a report to !    
,congress conta9+ all ( ! f9d+s &       
det]m9ations made 9 c>ry+ out su*       
program1 along ) any legislative or     
regulatory recomm5dations ! ,commission 
may h4  7#b7 ,factors to consid] ,9     
prep>+ ! report requir$ "u p>agraph     
7#a71 ! ,commission %all consid] factors
 relevant to ! impact ( rebates 7or     
comp>able inducem5ts7 on equity m>kets1 
includ+-- 7,a7 :e!r mak]-tak] pric+     
creates a pot5tial conflict ( int]e/    
betwe5 brok]s & _! cli5ts by inc5tiviz+ 
brok]s to use r\t+ t may be             
co/-effective = !m1 b :i* may n be ! be/
 me?od ( execution = _! cli5ts2  7,b7   
:e!r mak]-tak] pric+ r$uces1 or         
pot5tially r$uces1 m>ket transp>5cy &   

di/orts price discov]y ins(> z rebates &
 fees are n disclos$ 9 display$ quotes1 
!reby caus+ display$ spreads to be n>r[]
 or wid] ?an actual spreads2 &  7,c7    
:e!r mak]-tak] pric+ compromises1 or    
pot5tially compromises1 effici5cy &     
liquidity by--  7i7 contribut+ to       
increas$ l5g? 9 ex*ange queues2  7ii7   
caus+ passive m>ket p>ticipants to trade
 m aggressively to access liquidity2    
7iii7 contribut+ to a r$uction 9        
liquidity 9 times ( m>ket /ress1        
p>ticul>ly = less liquid securities2    
7iv7 inc5tiviz+ a prolif]ation ( ord]   
types1 rebates1 & fees1 !reby result+ 9 
increas$ fragm5tation ( ord] fl[2 &  7v7
 fo/]+ excessive int]m$iation by c]ta9  
m>ket p>ticipants t trade 9 "p or 9 :ole
 to capture rebates 7or comp>able       
inducem5ts7 or avoid fees4  7c7         
,commission au?ority ,! ,commission may 
make su* adju/m5ts to ! pilot program "u
 ?is section z ! ,commission consid]s   
necess>y or appropriate to ensure t su* 
program c provide /ati/ically mean+ful  

or reliable results4  7d7 ,def9itions ,=
 purposes ( ?is section3 7#a7 ,mak]-tak]
 pric+ ,! t]m mak]-tak] pric+ means any 
pric+ model by any trad+ v5ue t provides
 rebates 7or comp>able inducem5ts7 or   
fees to m>ket p>ticipants to ei!r       
provide liquidity to1 or to take        
liquidity f1 t trad+ v5ue4  7#b7        
,rebates ,! t]m rebates means funds     
provid$ by a trad+ v5ue to c]ta9        
p>ticipants 9 a transaction on t v5ue4  
7#c7 ,comp>able inducem5ts ,! t]m       
comp>able inducem5ts means items or     
s]vices ( value 7o!r ?an rebates7       
provid$ by a trad+ v5ue to c]ta9        
p>ticipants 9 a transaction on t v5ue1  
includ+ free or r$uc$-co/ m>ket data1   
connectivity ports1 co-location space1 &
 te*nology s]vices4