Restoring the Secondary Trading Market Act
Sponsored By: Representative Meuser, Daniel [R-PA-9]
In Committee
Summary
Preempts state limits on off-exchange secondary trading for issuers that publicly disclose specific current information. The bill amends the Securities Act to exempt off-exchange secondary trades in securities of issuers that make the exact periodic reports and documents identified in the cited federal rules publicly available.
Show full summary
- Issuers: Companies that publish the periodic reports and the documents specified in 17 CFR 230.257(b) and 17 CFR 240.15c2-11(b) become eligible for an off-exchange trading exemption from state restrictions.
- Investors: Holders and potential buyers may see broader off-exchange trading in qualifying securities because states can no longer prohibit or condition those trades.
- State regulators: State authority to prohibit, limit, or impose conditions on off-exchange secondary trading in these qualifying securities is curtailed and preempted by the amendment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Limits State Control Over Trading
If enacted, this bill would stop states from banning, limiting, or adding conditions to off-exchange secondary trading in certain securities. The preemption would apply when an issuer publicly provides either the information in the periodic and current reports listed in 17 C.F.R. §230.257(b) or the documents and information listed in 17 C.F.R. §15c2-11(b). The rule uses the Commission’s definition of off-exchange secondary trading. Issuers, brokers, dealers, and investors would face fewer state rules, but state-level investor protections could be reduced. The bill contains no express effective date in the cited text.
Sponsors & CoSponsors
Sponsor
Meuser, Daniel [R-PA-9]
PA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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