1963
<PRE>[DOCID: f:h3060rh.txt]
                                                 Union Calendar No. 170
107th CONGRESS
  1st Session
                                H. R. 3060

                          [Report No. 107-283]

 To amend the Securities Exchange Act of 1934 to augment the emergency 
          authority of the Securities and Exchange Commission.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 9, 2001

  Mr. Oxley (for himself, Mr. LaFalce, Mr. Baker, and Mr. Kanjorski) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

                           November 13, 2001

                     Addtional sponsor: Mr. Sherman

                           November 13, 2001

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
 To amend the Securities Exchange Act of 1934 to augment the emergency 
          authority of the Securities and Exchange Commission.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Securities Response Act of 
2001''.

SEC. 2. EXTENSION OF EMERGENCY ORDER AUTHORITY OF THE SECURITIES 
              EXCHANGE COMMISSION.

    (a) Extension of Authority.--Paragraph (2) of section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to 
read as follows:
            ``(2) Emergency orders.--(A) The Commission, in an 
        emergency, may by order summarily take such action to alter, 
        supplement, suspend, or impose requirements or restrictions 
        with respect to any matter or action subject to regulation by 
        the Commission or a self-regulatory organization under the 
        securities laws, as the Commission determines is necessary in 
        the public interest and for the protection of investors--
                    ``(i) to maintain or restore fair and orderly 
                securities markets (other than markets in exempted 
                securities);
                    ``(ii) to ensure prompt, accurate, and safe 
                clearance and settlement of transactions in securities 
                (other than exempted securities); or
                    ``(iii) to reduce, eliminate, or prevent the 
                substantial disruption by the emergency of (I) 
                securities markets, investment companies, or any other 
                significant portion or segment of such markets, or (II) 
                the transmission or processing of securities 
                transactions.
            ``(B) An order of the Commission under this paragraph (2) 
        shall continue in effect for the period specified by the 
        Commission, and may be extended. Except as provided in 
        subparagraph (C), the Commission's action may not continue in 
        effect for more than 30 business days, including extensions. If 
        the actions described in subparagraph (A) involve a security 
        futures product, the Commission shall consult with and consider 
        the views of the Commodity Futures Trading Commission. In 
        exercising its authority under this paragraph, the Commission 
        shall not be required to comply with the provisions of section 
        553 of title 5, United States Code, or with the provisions of 
        section 19(c) of this title.
            ``(C) An order of the Commission under this paragraph (2) 
        may be extended to continue in effect for more than 30 business 
        days if, at the time of the extension, the Commission finds 
        that the emergency still exists and determines that the 
        continuation of the order beyond 30 business days is necessary 
        in the public interest and for the protection of investors to 
        attain an objective described in clause (i), (ii), or (iii) of 
        subparagraph (A). In no event shall an order of the Commission 
        under this paragraph (2) continue in effect for more than 90 
        calendar days.''.
    (b) Definition of Emergency.--Paragraph (6) of section 12(k) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78l(k)(6)) is amended to 
read as follows:
            ``(6) Definition of emergency.--For purposes of this 
        subsection, the term `emergency' means--
                    ``(A) a major market disturbance characterized by 
                or constituting--
                            ``(i) sudden and excessive fluctuations of 
                        securities prices generally, or a substantial 
                        threat thereof, that threaten fair and orderly 
                        markets; or
                            ``(ii) a substantial disruption of the safe 
                        or efficient operation of the national system 
                        for clearance and settlement of transactions in 
                        securities, or a substantial threat thereof; or
                    ``(B) a major disturbance that substantially 
                disrupts, or threatens to substantially disrupt--
                            ``(i) the functioning of securities 
                        markets, investment companies, or any other 
                        significant portion or segment of the 
                        securities markets; or
                            ``(ii) the transmission or processing of 
                        securities transactions.''.




                                                 Union Calendar No. 170

107th CONGRESS

  1st Session

                               H. R. 3060

                          [Report No. 107-283]

_______________________________________________________________________

                                 A BILL

 To amend the Securities Exchange Act of 1934 to augment the emergency 
          authority of the Securities and Exchange Commission.

_______________________________________________________________________

                           November 13, 2001

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed

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