Page:United States Statutes at Large Volume 104 Part 1.djvu/997

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PUBLIC LAW 101-432—OCT. 16, 1990 104 STAT. 963 Public Law 101-432 101st Congress An Act To amend the Securities Exchange Act of 1934 to strengthen regulatory oversight of the United States securities markets, improve supervision of financial market participants, and improve the safety and efficiency of market mechanisms, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Oct. 16, 1990 [H.R. 3657] Market Reform Act of 1990. Brokers. 15 USC 78a This Act may be cited as the "Market Reform Act of 1990". note. SECTION 1. SHORT TITLE. SEC. 2. EMERGENCY AUTHORITY; TRADING HALTS. Section 12(k) of the Securities Exchange Act of 1934 (15 U.S.C. 15 USC 78/. 781(k)) is amended to read as follows: " (k) TRADING SUSPENSIONS; EMERGENCY AUTHORITY. — "(1) TRADING SUSPENSIONS.— If in its opinion the public interest and the protection of investors so require, the Commission is authorized by order— "(A) summarily to suspend trading in any security (other than an exempted security) for a period not exceeding 10 business days, and "(B) summarily to suspend all trading on any national securities exchange or otherwise, in securities other than exempted securities, for a period not exceeding 90 calendar days. The action described in subparagraph (B) shall not take effect unless the Commission notifies the President of its decision and the President notifies the Commission that the President does not disapprove of such decision. "(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 this title, 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); or "(ii) to ensure prompt, accurate, and safe clearance and settlement of transactions in securities (other than exempted securities). "(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 that in no event shall the Commission's action continue in effect for more than 10 business days, including extensions. 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. " (3) TERMINATION OF EMERGENCY ACTIONS BY PRESIDENT. —The President may direct that action taken by the Commission 49-139 O - 90 (432)