,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #dfai  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #bb1 #bjba,mr4  
,gre5 ( ,texas 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+ ahead by m>ket mak]s1 & =
 o!r purposes4  #a4 ,prohibition on     
trad+ ahead by m>ket mak]s  7a7 ,9 g5]al
 ,section #ae ( ! ,securities ,ex*ange  
,act ( #aicd 7#ae ,u4,s4,c4 #gho7 is    
am5d$ by add+ at ! end ! foll[+3  7p7   
,prohibition on trad+ ahead by m>ket    
mak]s  7#a7 ,9 g5]al ,) respect to a    
p]son act+ 9 ! capacity ( a m>ket mak]1 
if ! p]son accepts an ord] ) respect to 
a security f a cu/om]1 includ+ a brok]  
or deal]-- 7,a7 ! m>ket mak] has a duty 
( tru/ & loyalty to ! cu/om] aris+ f !  
receipt ( su* ord]2 &  7,b7 ! in=mation 
9 su* ord] is mat]ial1 non-public       
in=mation t may be us$ only 9 fur!rance 
( execut+ su* cu/om]'s ord]4  7#b7      
,annual ,,ceo c]tification ,! ,*ief     

,executive ,(fic] ( ea* p]son t acts 9 !
 capacity ( a m>ket mak] %all issue an  
annual c]tification to ! ,commission1 9 
su* =m & mann] z ! ,commission may      
prescribe by rule1 t c]tifies t-- 7,a7 !
 p]son has p]=m$ reasonable due dilig5ce
 dur+ ! report+ p]iod to ensure t !     
p]son has n violat$ ! duty ( tru/ &     
loyalty describ$ "u p>agraph 7#a77;,a7  
or us$ ! in=mation describ$ "u p>agraph 
7#a77;,b7 9 a prohibit$ fa%ion2 &  7,b7 
! p]son has n violat$ ! duty ( tru/ &   
loyalty describ$ "u p>agraph 7#a77;,a7  
or us$ ! in=mation describ$ "u p>agraph 
7#a77;,b7 9 a prohibit$ fa%ion dur+ !   
report+ p]iod4  7#c7 ,p]sonal liability 
7,a7 ,f9e = individual violations ,any  
associat$ p]son ( a m>ket mak] :o kn[+ly
 & willfully causes ! m>ket mak] to     
violate p>agraph 7#a7 7or :o directs    
ano!r ag5t or associat$ p]son ( ! m>ket 
mak] to commit su* a violation or engage
 9 su* acts t result 9 ! associat$ p]son
 be+ p]sonally unju/ly enri*$7 %all be  
f9$ 9 an am\nt equal to ! great] (-- 7i7

 two times ! am\nt ( pr(it realiz$ by   
reason ( su* violation2 or  7ii7        
#ej1jjj4  7,b7 ,c\rse ( conduct ,any    
associat$ p]son ( a m>ket mak] :o kn[+ly
 & willfully causes ! m>ket mak] to     
engage 9 a c\rse ( conduct ( kn[+ly &   
willfully violat+ p>agraph 7#a7 7or :o  
directs ano!r ag5t or associat$ p]son ( 
! m>ket mak] to commit su* a violation  
or engage 9 su* acts t result 9 !       
associat$ p]son be+ p]sonally unju/ly   
enri*$7 %all be-- 7i7 f9$ 9 an am\nt n  
to exce$ #bjj p]c5t ( ! comp5sation     
7includ+ /ock options aw>d$ z           
comp5sation7 receiv$ by su* associat$   
p]son f ! m>ket mak]-- 7,i7 dur+ ! "t   
p]iod 9 :i* ! violations occurr$2 or    
7,,ii7 9 ! "o- to ?ree-ye> "t p]iod     
prec$+ ! date on :i* ! violations 7     
discov]$2 &  7ii7 imprison$ = n m ?an #e
 ye>s4  7,c7 ,associat$ p]son def9$ ,!  
t]m associat$ p]son means an associat$  
p]son ( a brok] or deal]4  7#d7         
,rulemak+ ,n lat] ?an ! end ( ! #ij-;day
 p]iod beg9n+ on ! date ( enactm5t ( ?is

 subsection1 ! ,commission-- 7,a7 %all  
issue rules to c>ry out ?is subsection2 
&  7,b7 may provide exemptions f !      
requirem5ts ( ?is subsection1 by rule1  
if ! ,commission det]m9es t su*         
exemptions w\ld promote m>ket integrity 
& are necess>y or appropriate 9 ! public
 int]e/ or = ! protection ( inve/ors4  4
  7b7 ,s5se ( ,congress ,x is ! s5se ( !
 ,congress t ! prohibitions add$ by ?is 
section %\ld complem5t1 & n replace1    
exi/+ rules ( self-regulatory           
organizations applicable to _! memb]s1  
includ+ brok]s & deal]s4  7c7 ,effective
 date ,section #ae7p7 ( ! ,securities   
,ex*ange ,act ( #aicd1 z add$ by        
subsection 7a71 %all take effect aft] ! 
end ( ! #ahj-;day p]iod beg9n+ on ! date
 ( enactm5t ( ?is ,act4