,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #becd ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #g1 #bjai,mr4 ,himes introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,securities ,ex*ange ,act ( #aicd to prohibit c]ta9 securities trad+ & relat$ communications by ^? :o possess mat]ial1 nonpublic in=mation4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,insid] ,trad+ ,prohibition ,act4 #b4 ,prohibition on insid] trad+ 7a7 ,9 g5]al ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #af ! foll[+ new section3 #af;,a4 ,prohibition on insid] trad+ 7a7 ,prohibition aga9/ trad+ securities :ile 9 possession ( mat]ial1 nonpublic in=mation ,x %all be unlawful = any p]son1 directly or indirectly1 to pur*ase1 sell1 or ent] into1 or cause ! pur*ase or sale ( or entry into1 any security1 security-bas$ swap1 or security-bas$ swap agreem5t1 :ile 9 possession ( mat]ial1 nonpublic in=mation relat+ to su* security1 security-bas$ swap1 or security-bas$ swap agreem5t1 or relat+ to ! m>ket = su* security1 security-bas$ swap1 or security-bas$ swap agreem5t1 if su* p]son kn[s1 or recklessly disreg>ds1 t su* in=mation has be5 obta9$ wrongfully1 or t su* pur*ase or sale w\ld con/itute a wrongful use ( su* in=mation4 7b7 ,prohibition aga9/ ! wrongful communication ( c]ta9 mat]ial1 nonpublic in=mation ,x %all be unlawful = any p]son ^: own pur*ase or sale ( a security1 security-bas$ swap1 or entry into a security-bas$ swap agreem5t w\ld violate subsection 7a7 7ref]r$ to 9 ?is subsection z ! #8communicat+ p]son'71 wrongfully to communicate mat]ial1 nonpublic in=mation relat+ to su* security1 security-bas$ swap1 or security-bas$ swap agreem5t1 or relat+ to ! m>ket = su* security1 security-bas$ swap1 or security-bas$ swap agreem5t1 to any o!r p]son if-- 7#a7 ! o!r p]son-- 7,a7 pur*ases1 sells1 or causes ! pur*ase or sale (1 any security or security-bas$ swap or ent]s into or causes ! entry into any security-bas$ swap agreem5t1 to :i* su* communication relates2 or 7,b7 communicates ! in=mation to ano!r p]son :o makes or causes su* a pur*ase1 sale1 or entry :ile 9 possession ( su* in=mation2 & 7#b7 su* a pur*ase1 sale1 or entry :ile 9 possession ( su* in=mation is reasonably =eseeable4 7c7 ,/&>d & k requirem5t 7#a7 ,/&>d ,= purposes ( ?is section1 trad+ :ile 9 possession ( mat]ial1 nonpublic in=mation "u subsection 7a7 or communicat+ mat]ial nonpublic in=mation "u subsection 7b7 is wrongful only if ! in=mation has be5 obta9$ by1 or its communication or use w\ld con/itute1 directly or indirectly-- 7,a7 !ft1 brib]y1 misrepres5tation1 or espionage 7?r\gh electronic or o!r means72 7,b7 a violation ( any ,f$]al law protect+ comput] data or ! intellectual prop]ty or privacy ( comput] us]s2 7,c7 conv]sion1 misappropriation1 or o!r unau?oriz$ & deceptive tak+ ( su* in=mation2 or 7,d7 a brea* ( any fiduci>y duty1 a brea* ( a confid5tiality agreem5t1 a brea* ( contract1 or a brea* ( any o!r p]sonal or o!r relation%ip ( tru/ & confid5ce4 7#b7 ,k requirem5t ,x %all n be necess>y t ! p]son trad+ :ile 9 possession ( su* in=mation 7z proscrib$ by subsection 7a771 or mak+ ! communication 7z proscrib$ by subsection 7b771 kn[s ! specific means by :i* ! in=mation 0 obta9$ or communicat$1 or :e!r any p]sonal b5efit 0 paid or promis$ by or to any p]son 9 ! *a9 ( communication1 s long z ! p]son trad+ :ile 9 possession ( su* in=mation or mak+ ! communication1 z ! case may be1 0 aw>e1 consci\sly avoid$ be+ aw>e1 or recklessly disreg>d$ t su* in=mation 0 wrongfully obta9$ or communicat$4 7d7 ,d]ivative liability ,except z provid$ 9 section #bj7;a71 no p]son %all be liable "u ?is section solely by reason ( ! fact t su* p]son controls or employs a p]son :o has violat$ ?is section1 if su* controll+ p]son or employ] did n p>ticipate 91 pr(it f1 or directly or indirectly induce ! acts con/itut+ ! violation ( ?is section4 7e7 ,exempt$ transactions 7#a7 ,9 g5]al ,! ,commission may1 by rule or by ord]1 exempt any p]son1 security1 or transaction1 or any class ( p]sons1 securities1 or transactions1 f any or all ( ! provisions ( ?is section1 ^u su* t]ms & conditions z x consid]s necess>y or appropriate1 if ! ,commission det]m9es t su* action is n inconsi/5t ) ! purposes ( ?is section4 ,! prohibitions ( ?is section %all n apply to any p]son :o acts at ! specific direction (1 & solely = ! acc\nt (1 a p]son ^: own securities trad+1 or communications ( mat]ial1 nonpublic in=mation1 w\ld be lawful "u ?is section4 7#b7 ,automatic trad+ 7,a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is section1 ! ,commission %all det]m9e if any automatic trad+ transactions %\ld be exempt$ f any ( ! provisions ( ?is section & %all make su* det]m9ation available to ! public1 includ+ on ! website ( ! ,commission4 7,b7 ,int]im application ,dur+ ! p]iod betwe5 ! date ( ! enactm5t ( ?is section & ! date on :i* ! ,commission makes a det]m9ation pursuant to subp>agraph 7,a71 automatic trad+ transactions %all be exempt$ f ! provisions ( ?is section4 7,c7 ,automatic trad+ transaction def9$ ,= ! purposes ( ?is p>agraph1 ! t]m automatic trad+ transaction means any pur*ase or sale ( a security1 security-bas$ swap1 or security-bas$ swap agreem5t t-- 7i7 occurs automatically2 or 7ii7 is made pursuant to an advance election4 4 7b7 ,con=m+ am5dm5ts ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is fur!r am5d$-- 7#a7 9 section #ba7;d77#b71 by ins]t+ 1 section #af;,a ( ?is title aft] section #aj7;b7 ( ?is title12 7#b7 9 section #ba;,a-- 7,a7 9 subsection 7g77#a71 by ins]t+ & section #af;,a1 aft] !reund]12 & 7,b7 9 subsection 7h77#a71 by ins]t+ & section #af;,a1 aft] !reund]12 & 7#c7 9 section #ba;,c7f71 by ins]t+ or section #af;,a1 aft] section #aj7;b74 7c7 ,s5se ( ,congress ,x is ! s5se ( ! ,congress t ! am5dm5ts made by ?is ,act are int5d$ to sup]c$e section #aj7;b7 or #ad;e ( ! ,securities ,ex*ange ,act ( #aicd ) reg>d to ! wrongful use or wrongful communication ( mat]ial1 nonpublic in=mation 9 connection ) ! pur*ase or sale ( securities1 security-bas$ swaps1 & security-bas$ swap agreem5ts4