H.R.3973 – Market Data Protection Act of 2017

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Week ending November 17, 2017

H.R.3973 – Market Data Protection Act of 2017

Brief

HR 3973 requires that the consolidated audit trail (CAT) develop internal risk control mechanisms to safeguard the storage and use of market data. Under the bill the SEC must confer with securities associations and the CAT operator on developing they controls.

CAT is a database that will track trading in equities and options markets.

Market data reports would be delayed until the safety mechanisms are in place.

Based on an analysis of information from the SEC, CBO estimates that implementing H.R. 3973 would cost $1 million over the 2018-2022 period. That amount would cover the development and maintenance of the SEC’s internal risk controls and the commission’s continuous review of mechanisms put in place by the securities associations and the CAT’s operator. Because the SEC is authorized to collect fees sufficient to offset its annual appropriation, CBO estimates that the net effect on discretionary spending would be negligible, assuming appropriation actions consistent with that authority. – cbo

The national securities associations and the CAT’s operator already are developing data safeguards that are expected to meet many of the bill’s requirements

(Full text of H.R. 3973 congress.gov)

SponsorRep. Davidson, Warren [R-OH-8] (Introduced 10/05/2017)

Status: Oassed House /

VOTES and FLOOR ACTION

HOUSE

On Passage: On motion to suspend the rules and pass the bill Agreed to by voice vote.

House Amendments:

Motion to recommit:

Text of the motion:

SENATE

On Passage:

Procedural Actions:

Senate Amendments:

COST AND IMPACT

Cost to the taxpayers:  Based on an analysis of information from the SEC, CBO estimates that implementing H.R. 3973 would cost $1 million over the 2018-2022 period. That amount would cover the development and maintenance of the SEC’s internal risk controls and the commission’s continuous review of mechanisms put in place by the securities associations and the CAT’s operator. Because the SEC is authorized to collect fees sufficient to offset its annual appropriation, CBO estimates that the net effect on discretionary spending would be negligible, assuming appropriation actions consistent with that authority.

Pay-as-you-go requirements:  Enacting H.R. 3973 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.

Regulatory and Other Impact: If the SEC increased fees to offset the costs of implementing the additional regulatory activities required by the bill, H.R. 3973 would increase the cost of an existing mandate on private entities required to pay those fees. On the basis of information from the SEC, CBO estimates that an increase in fees to offset those costs would amount to about $1 million over the 2018-2022 period. The bill also would impose a private-sector mandate on national securities associations and on the CAT’s operator by requiring them to develop safeguards. Because the national securities associations and the CAT’s operator already are developing data safeguards that are expected to meet many of the bill’s requirements, CBO estimates that the incremental costs of the mandate would be small. The combined costs of both mandates would fall well below the annual threshold for private-sector mandates established in UMRA ($156 million in 2017, adjusted annually for inflation).

Dynamic Scoring:   CBO estimates that enacting H.R. 3973 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.

Tax Complexity:  Not applicable to this bill.

Earmark Certification:  Data not available

Duplication of programs: Data not available

Direct Rule-Making:  Data not available

Advisory Committee Statement: Data not available

Budget Authority: Data not available

Constitutional Authority:   Assumed.

 

More Bill Information:

 

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