S. 3733 — Introduced in Senate

II 115th CONGRESS 2d Session S. 3733 IN THE SENATE OF THE UNITED STATES December 10, 2018Mr. Perdue introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 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. 1. Short title This Act may be cited as the Protection of Source Code Act. 2. Procedure for obtaining certain intellectual property (a) 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. . (b) 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. . (c) 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. . (d) Investment Advisers Section 204 of the Investment Advisers Act of 1940 (15 U.S.C. 80b–4) is amended— (1) by redesignating the second subsection (d) (relating to records of persons with custody or use) as subsection (e); and (2) 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. .