CAT and Source Data Bills Advance to House
Each pass with strong bipartisan support.
By an overwhelming vote, 59 to 1, the House Financial Services Committee approved H.R. 3973, or the Market Data Protection Act of 2017, and moved the bill to the full House of Representatives for a vote.
Introduced by Rep. Warren Davidson (R-OH) and Rep. Brad Sherman (D-CA), the bipartisan bill amends the Securities Exchange Act of 1934 to require that the SEC, FINRA, and the operator of the Consolidated Audit Trail, in consultation with the US Securities and Exchange Commission’s Chief Economist, develop comprehensive internal risk control mechanisms to safeguard and govern the storage of market data, all market data sharing agreements, and all academic research using market data. The bill also halts market data reporting to the CAT until the operator of the CAT develops such internal risk control mechanisms.
In the same session, the committee also approved H.R. 3948, the Protection Source Code Act, by a smaller margin, 46-14.
Introduced by Rep. Sean Duffy (R-WI) and Rep. David Scott (D-GA), the bipartisan bill amends the Securities Act of 1933 to require the SEC to first issue a subpoena before compelling a person to produce or furnish to the SEC algorithmic trading source code or similar intellectual property.
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