UCLA Presents voteview.com beta 3
102nd Congress > House > Vote 810
Clerk session vote number: 395
Description: GOVERNMENT SECURITIES REFORM ACT
Bill summary: Government Securities Reform Act of 1992 -
Title I: Government Securities Secondary Market Regulation
- Amends the Securities Exchange Act of 1934 to extend from October 1, 1991, to October 1, 1997, the rulemaking authorities of the Secretary of the Treasury (the Secretary) regarding capital adequacy and general recordkeeping requirements for government securities dealers.
Authorizes the Securities and Exchange Commission (SEC) to promulgate recordkeeping requirements with respect to government
securities transactions executed by dealers or brokers. Requires such traders to furnish, upon SEC request, records enabling the SEC to reconstruct trading. Prohibits use of the SEC's information gathering authority to develop regular reporting requirements for information concerning a substantial segment of all daily transactions.
Prescribes the parameters of information disclosure by the SEC to Federal agencies.
Authorizes the Secretary of the Treasury to prescribe reporting and recordkeeping requirements for persons who hold or control large positions in to-be-issued or recently-issued Treasury securities. Permits such information to be exchanged among appropriate regulatory agencies, the Justice Department, the Commodity Futures Trading Commission, self-regulating organizations, and any Federal Reserve Bank.
Extends current SEC authority to all government securities brokers and dealers and all government securities transactions, enabling the SEC to prescribe rules to prevent fraudulent and manipulative acts and practices (including the use of certain devices and contrivances) in that sector.
Requires every government securities broker or dealer to implement internal written policies and procedures designed to prevent and detect fraud and manipulation with respect to government securities transactions.
Authorizes the appropriate regulatory agency to promulgate rules designed to prevent fraud or manipulation in government securities transactions (including transactions by financial institutions).
Removes the limitations placed upon the authority of registered securities associations (such as the NASD) to regulate member transactions in government securities (thus permitting such associations to implement self-regulatory procedures with respect to members dealing in government securities). Requires the SEC to consult with the Secretary before approving a proposed rule change filed by a registered securities association that primarily concerns conduct related to government securities transactions (unless the SEC determines that an emergency requires expeditious action and publishes its reasons accordingly).
Authorizes the SEC to: (1) prescribe rules to assure that government securities information systems meet statutory objectives of quality and transparency with respect to transactions and quotations for use by investors; (2) require a government securities trader which the Secretary has determined does not meet such objectives to report transactions to a securities information processor or self-regulatory organization that agrees to make such information publicly available; and (3) require such processor or self-regulatory organization to make government securities purchase and sales information publicly available on fair, reasonable, and nondiscriminatory terms. Conditions such SEC authority upon findings by the Secretary that the available information does not readily permit investors to determine the prevailing market price, or is no longer representative of the market. Denies SEC authority under this Act with respect to market information the further authority to require the establishment or use of a consolidated trading system for government securities. Delineates the parameters within which the SEC may examine systems and operations of government securities information systems.
Requires the Secretary, the SEC and the Board of Governors of the Federal Reserve System to: (1) monitor, evaluate, and report to the Congress on the efficacy of private sector efforts to disseminate price and volume information on mortgage-backed government securities according to statutory standards for accuracy, fairness and reliability; and (2) jointly study and report to the Congress on the government securities regulatory system.
Requires the General Accounting Office to study and report to the Congress on the effectiveness of regulation of government securities brokers and dealers.
Amends the Securities Exchange Act of 1934 to prohibit a government securities dealer, broker, bidder, or purchaser from knowingly or willingly making false or misleading written statements with respect to any bid or purchase of such securities (including the omission of necessary facts which results in such a statement).
Title II: Primary Market Transactions in Public Securities
- Amends Federal law with respect to the public debt to proscribe the knowing or willful false or misleading representation or omission of fact regarding transaction in government public debt obligations by government securities brokers, dealers, bidders or purchasers.
Requires the Secretary to report to specified congressional committees on: (1) the public debt activities of the Treasury; and (2) the operations of the Federal Financing Bank. Prescribes report contents, including information on the levels and categories of the Bank's lending activities for current and prior fiscal years.
Directs the Secretary to study and report to the Congress on: (1) proposals for reforming the public-debt obligation system (including the use of a uniform-price, open auction system); and (2) the impact of recent and administrative and legislative changes in the public debt markets upon the primary market for public debt obligations. Precludes the Secretary from implementing a uniform-price, open-auction system for issuing public debt obligations until such study has been submitted.
Bill titles: A bill to prevent false and misleading statements in connection with offerings of government securities.
Links for more info on the vote: congress.gov
