,,iib #aaf? ,,congress #a/ ,session ,h4 ,r4 #becd ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #i1 #bjai ,receiv$2 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,,an ,,act ,to am5d ! ,securities ,ex*ange ,act ( #aicd to prohibit c]ta9 securities trad+ & relat$ communications by ^? :o possess mat]ial1 nonpublic in=mation4 #a ,%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 aw>e ( 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 aw>e ( mat]ial1 nonpublic in=mation relat+ to su* security1 security-bas$ swap1 or security-bas$ swap agreem5t1 or any nonpublic in=mation1 f :atev] s\rce1 t has1 or w\ld reasonably be expect$ to h1 a mat]ial effect on ! m>ket price ( any 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 7a71 wrongfully to communicate mat]ial1 nonpublic in=mation relat+ to su* security1 security-bas$ swap1 or security-bas$ swap agreem5t1 or any nonpublic in=mation1 f :atev] s\rce1 t has1 or w\ld reasonably be expect$ to h1 a mat]ial effect on ! m>ket price ( any 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 aw>e ( su* in=mation2 & 7#b7 su* a pur*ase1 sale1 or entry :ile aw>e ( su* in=mation is reasonably =eseeable4 7c7 ,/&>d & k requirem5t 7#a7 ,/&>d ,= purposes ( ?is section1 trad+ :ile aw>e ( 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 a brea* ( any code ( conduct or e?ics policy1 or a brea* ( any o!r p]sonal or o!r relation%ip ( tru/ & confid5ce = a direct or indirect p]sonal b5efit 7includ+ pecuni>y ga91 reputational b5efit1 or a gift ( confid5tial in=mation to a trad+ relative or fri5d74 7#b7 ,k requirem5t ,x %all n be necess>y t ! p]son trad+ :ile aw>e ( 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 aw>e ( 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$1 improp]ly us$1 or wrongfully 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 or directly or indirectly induce ! acts con/itut+ a violation ( ?is section4 7e7 ,affirmative def5ses 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 appropriate 9 fur!rance ( ! purposes ( ?is title4 7#b7 ,direct$ trad+ ,! prohibitions ( ?is section %all n apply to any p]son :o acts at ! specific direction (1 & solely = ! acc\nt ( ano!r p]son ^: own securities trad+1 or communications ( mat]ial1 nonpublic in=mation1 w\ld be lawful "u ?is section4 7#c7 ,rule #aj;b-#e-a compliant transactions ,! prohibitions ( ?is section %all n apply to any transaction t satisfies ! requirem5ts ( ,rule #aj;b-#e-a 7#ag ,,cfr #bdj4aj;b#e-a71 or any successor regulation4 4 7b7 ,commission review ( ,rule #aj;b-#e-a ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,securities & ,ex*ange ,commission %all review ,rule #aj;b-#e-a 7#ag ,,cfr #bdj4aj;b#e-a7 & make any modifications ! ,securities & ,ex*ange ,commission det]m9es necess>y or appropriate because ( ! am5dm5t to ! ,securities ,ex*ange ,act ( #aicd made by ?is ,act4 7c7 ,con=m+ am5dm5ts ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is fur!r am5d$-- 7#a7 9 section #ba7;d77#b71 by ins]t+ 1 section #af;,a ( ?is title aft] section #aj7;b7 ( ?is title12 7#b7 9 section #ba;,a-- 7,a7 9 subsection 7g77#a71 by ins]t+ & section #af;,a1 aft] !reund]12 & 7,b7 9 subsection 7h77#a71 by ins]t+ & section #af;,a1 aft] !reund]12 & 7#c7 9 section #ba;,c7f71 by ins]t+ or section #af;,a1 aft] section #aj7;b74 ,pass$ ! ,h\se ( ,repres5tatives ,decemb] #e1 #bjai4;,*]yl ,l4 ,johnson1,cl]k4