,,ii #aai? ,,congress #b;d ,session ,s4 #ecbj ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,augu/ #f1 #bjbf,mr4 ,re$ 7= himself1 ,mr4 ,van ,holl51 ,mr4 ,kim1 ,ms4 ,alsobrooks1 & ,ms4 ,blunt ,ro*e/]7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d ! ,securities ,ex*ange ,act ( #aicd to prohibit c]ta9 securities trad+ & relat$ communications by ^? :o possess mat]ial1 nonpublic in=mation1 & = o!r purposes4 #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 7#ae ,u4,s4,c4 #ghp7 ! foll[+3 #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 (1 or entry into1 any security1 security-bas$ swap1 or security-bas$ swap agreem5t if t p]son1 at ! "t ! p]son takes su* an action-- 7#a7 has access to in=mation relat+ to su* security1 security-bas$ swap1 or security-bas$ swap agreem5t t is mat]ial & nonpublic & is aw>e 7includ+ if ! p]son consci\sly avoids be+ aw>e71 or recklessly disreg>ds1 t su* in=mation is mat]ial & nonpublic2 & 7#b7 is aw>e 7includ+ if ! p]son consci\sly avoids be+ aw>e71 or recklessly disreg>ds1 t-- 7,a7 ! in=mation describ$ 9 p>agraph 7#a7 has be5 obta9$ wrongfully2 or 7,b7 ! pur*ase1 sale1 or entry w\ld con/itute wrongful trad+ on ! in=mation describ$ 9 p>agraph 7#a74 7b7 ,prohibition aga9/ ! wrongful communication ( c]ta9 mat]ial1 nonpublic in=mation ,x %all be unlawful = any p]son1 ! pur*ase or sale ( a security or security-bas$ swap 7or entry into a security-bas$ swap agreem5t7 by :i* w\ld violate subsection 7a71 to wrongfully communicate mat]ial1 nonpublic in=mation relat+ to t security1 security-bas$ swap1 or security-bas$ swap agreem5t to any o!r p]son1 if-- 7#a7 ! p]son communicat+ ! in=mation1 at ! "t ! p]son communicates ! in=mation1 is aw>e 7includ+ if ! p]son consci\sly avoids be+ aw>e71 or recklessly disreg>ds1 t su* communication w\ld result 9 su* a pur*ase1 sale1 or entry2 & 7#b7 any recipi5t ( ! wrongfully communicat$ in=mation pur*ases1 sells1 or causes ! pur*ase or sale ( any security or security-bas$ swap1 or ent]s into 7or causes ! entry into7 any security-bas$ swap agreem5t1 bas$ on t communication4 7c7 ,/&>d & k requirem5t 7#a7 ,/&>d ,= purposes ( ?is section1 trad+ :ile aw>e ( mat]ial1 nonpublic in=mation "u subsection 7a71 or communicat+ mat]ial1 nonpublic in=mation "u subsection 7b71 is wrongful only if ! in=mation has be5 obta9$ by1 or ! communication or trad+ on ! in=mation w\ld con/itute1 directly or indirectly-- 7,a7 !ft1 conv]sion1 brib]y1 misrepres5tation1 espionage 7?r\gh electronic or o!r means71 or o!r unau?oriz$ access ( ! in=mation2 7,b7 a violation ( any ,f$]al law protect+-- 7i7 comput] data2 or 7ii7 ! intellectual prop]ty or privacy ( comput] us]s2 7,c7 misappropriation f a s\rce ( ! in=mation2 or 7,d7 a brea* ( any fiduci>y duty to %>ehold]s ( an issu] = a direct or indirect p]sonal b5efit1 includ+-- 7i7 an exi/+ or future pecuni>y ga9 or reputational b5efit2 or 7ii7 a gift ( confid5tial in=mation to a relative or fri5d4 7#b7 ,k requirem5t ,x %all n be necess>y t a p]son trad+ :ile aw>e ( in=mation 9 violation ( subsection 7a71 or mak+ a communication 9 violation ( subsection 7b71 kn[s ! specific means by :i* ! in=mation 0 obta9$ or communicat$ or trad$ on1 or ! specific b5efit describ$ 9 p>agraph 7#a77;,d7 t 0 receiv$1 paid1 or promis$ by or to any p]son 9 ! *a9 ( communication1 if ! p]son trad+ :ile aw>e ( ! in=mation or mak+ ! communication1 z applicable1 at ! "t ! p]son makes ! trade or communicates ! in=mation1 is aw>e 7includ+ if ! p]son consci\sly avoids be+ aw>e71 or recklessly disreg>ds1 t ! in=mation 0 wrongfully obta9$1 wrongfully trad$ on1 or wrongfully communicat$4 7d7 ,affirmative def5ses 7#a7 ,9 g5]al ,! ,commission may1 by rule or by ord]1 exempt any p]son1 security1 or transaction1 or any class ( p]sons1 securities1 or transactions1 f any or all ( ! provisions ( ?is section1 ^u su* t]ms & conditions z ! ,commission consid]s necess>y or appropriate 9 fur!rance ( ! purposes ( ?is title4 7#b7 ,rule #aj;b#e-a compliant transactions ,! prohibitions ( ?is section %all n apply to any transaction t satisfies ! requirem5ts ( section #bdj4aj;b#e-a ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7e7 ,rule ( con/ruction ,! rights & rem$ies provid$ by ?is section %all be 9 addition to any & all o!r rights & rem$ies t may exi/ at law or 9 equity 7)\t reg>d to :e!r su* a "r or rem$y is provid$ "u ?is ,act7 ) respect to an action by a p]son to-- 7#a7 pur*ase1 sell1 or ent] into a security1 security-bas$ swap1 or security-bas$ swap agreem5t :ile aw>e ( mat]ial1 nonpublic in=mation2 or 7#b7 communicate mat]ial1 nonpublic in=mation relat+ to a security1 security-bas$ swap1 or security-bas$ swap agreem5t4 4 7b7 ,con=m+ am5dm5ts ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$-- 7#a7 9 section #c7;a77#gh77;,a7 7#ae ,u4,s4,c4 #gh;c7a77#gh77;,a771 by ins]t+ #af;,a1 aft] #af12 7#b7 9 section #ba7;d77#b7 7#ae ,u4,s4,c4 #ghu7d77#b771 by /rik+ or ! rules or regulations !reund] & ins]t+ 1 section #af;,a ( ?is title1 or ! rules or regulations "u ei!r su* section2 7#c7 9 section #ba;,a 7#ae ,u4,s4,c4 #ghu-#a7-- 7,a7 9 subsection 7g77#a71 by /rik+ section #aj7;b7 & ,rule #aj;b-#e !reund] & ins]t+ section #aj7;b71 ,rule #aj;b-#e !reund]1 & section #af;,a2 & 7,b7 9 subsection 7h77#a71 by /rik+ section #aj7;b71 & ,rule #aj;b-#e !reund] & ins]t+ section #aj7;b71 ,rule #aj;b-#e !reund]1 & section #af;,a2 & 7#d7 9 section #ba;,c7f7 7#ae ,u4,s4,c4 #ghu-#c7;f771 by /rik+ or ! rules or regulations !reund] & ins]t+ 1 section #af;,a1 or ! rules or regulations "u ei!r su* section4