Insider Trading Prohibition Act
Latest action · Mar 25, 2015 Referred to the House Committee on Financial Services.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedMar 25, 2015
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Insider Trading Prohibition Act
This bill amends the Securities Exchange Act of 1934 to prohibit any person from trading securities or effectuating such trades while in possession of related material, nonpublic information, or while either knowing or recklessly disregarding that the information has been obtained wrongfully, or that the transactions would constitute a wrongful use of such information.
It shall also be unlawful for any person whose own securities transactions violate this Act to communicate wrongfully to another person material, nonpublic information relating to either those transactions or the market for them if the other person:
- purchases, sells, or causes the purchase or sale of, any security or security-based swap or enters into or causes the entry into any security-based swap agreement, to which such communication relates; or
- communicates the information to another person who makes or causes such a transaction while in possession of such information.
The other person's ensuing purchase, sale, or entry while in possession of such information must also be reasonably foreseeable.
A standard and a knowledge requirement are prescribed for acts constituting unlawful trading in securities.
A person who has neither participated in, profited from, nor induced violations of this Act is shielded from liability even though that person controls or employs the violator.
The Securities and Exchange Commission is authorized to exempt from this Act persons, securities, or transactions, subject to any necessary or appropriate terms and conditions, if it determines that the exemption is not inconsistent with the purposes of this Act.
Cosponsors 31
Members who signed on, in the order they did. Signatures ran from Mar 25, 2015 to May 23, 2016; 3 are original cosponsors, there from the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| D-NY | Carolyn B. Maloney | Original | Mar 25, 2015 |
| D-MO | Emanuel Cleaver | Original | Mar 25, 2015 |
| R-AR | Steve Womack | Original | Mar 25, 2015 |
| D-CT | Elizabeth H. Esty | Apr 15, 2015 | |
| D-DE | John C. Carney, Jr. | Apr 20, 2015 | |
| I-AZ | Kyrsten Sinema | Apr 20, 2015 | |
| D-WA | Suzan K. DelBene | Apr 27, 2015 | |
| R-NJ | Leonard Lance | Jul 8, 2015 | |
| D-CA | Scott H. Peters | Jul 9, 2015 | |
| D-TN | Jim Cooper | Jul 22, 2015 | |
| D-FL | Patrick Murphy | Oct 6, 2015 | |
| D-WA | Denny Heck | Oct 22, 2015 | |
| D-CO | Jared Polis | Oct 22, 2015 | |
| D-WA | Derek Kilmer | Oct 26, 2015 | |
| D-VA | Donald S. Beyer, Jr. | Oct 27, 2015 | |
| D-CA | Eric Swalwell | Oct 27, 2015 | |
| D-NY | Nita M. Lowey | Oct 29, 2015 | |
| D-NV | Dina Titus | Nov 3, 2015 | |
| D-MD | John K. Delaney | Nov 16, 2015 | |
| D-MA | Michael E. Capuano | Nov 16, 2015 | |
| D-WI | Gwen Moore | Dec 7, 2015 | |
| D-CT | John B. Larson | Dec 7, 2015 | |
| D-NY | Sean Patrick Maloney | Dec 7, 2015 | |
| D-AL | Terri A. Sewell | Dec 7, 2015 | |
| D-NY | Kathleen M. Rice | Dec 9, 2015 | |
| D-CA | Susan A. Davis | Mar 2, 2016 | |
| D-WA | Rick Larsen | Mar 10, 2016 | |
| D-CA | Ami Bera | Mar 14, 2016 | |
| D-WI | Ron Kind | Apr 11, 2016 | |
| D-MA | Seth Moulton | Apr 19, 2016 | |
| D-CA | Jackie Speier | May 23, 2016 |
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Financial Services Committee | Referred Mar 25, 2015 |
Actions 2
Everything that happened, newest first.
- Mar 25, 2015Introduced in House
- Mar 25, 2015Referred to the House Committee on Financial Services.
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Constitutional authority
The sponsor’s statement, as printed in the Congressional Record, vol. 161, no. 50, March 25, 2015, page H2034.
Printed hearings 1
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| Serial No. 114-110 | EXAMINING THE SEC'S AGENDA, OPERATIONS, AND FISCAL YEAR 2018 BUDGET REQUEST104 pages | Financial Services Committee | Nov 15, 2016 |
CRS reports 1
Congressional Research Service work that CRS links to this bill or the law it became, newest first.
Cite it 1
Products on other subjects that cite it, usually among other measures.
| Product | Title | Kind | Published |
|---|---|---|---|
| LSB10028 | The Latest Chapter in Insider Trading Law: Major Circuit Decision Expands Scope of Liability for Trading on a “Tip” Archived | Insight | Nov 14, 2017 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To amend the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by those who possess material, nonpublic information.
- Short Titles as Introduced
- Insider Trading Prohibition Act
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
Text 1
Each version as it was printed, newest first.
- Mar 25, 2015Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
