H.R. 4619 · 117th Congress

To amend the Securities Exchange Act of 1934 to prohibit trading ahead by market makers, and for other purposes.

Stage
Reported from committee
Sponsor
Al Green
Introduced
2021-07-22
Latest action
2021-07-29 · Committee Consideration and Mark-up Session Held.

Summary

This bill creates specified duties for market makers—individuals and firms that buy and sell securities, such as brokerage houses—and sets forth penalties for violations of those duties. Specifically, the bill establishes for market makers a duty of trust and loyalty to the customer upon receipt of an order and deems the information in the order as material, non-public information. Furthermore, the Chief Executive Officer of a market maker must annually certify compliance with such responsibilities. The bill establishes civil and criminal penalties for violations.