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Prohibiting Trading Ahead by Market Makers: Investor Protection

New rules aim to protect investors in the stock market by prohibiting market makers from using confidential customer order information for their own benefit. This means market makers cannot buy or sell shares before executing a customer's order to profit from it. This introduces greater fairness and transparency to the market, which may increase trust in investing.
Key points
Market makers must act in the customer's best interest, and order information is confidential.
Company CEOs will be required to annually certify compliance with these rules.
Violations carry significant financial penalties and even imprisonment for responsible individuals.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_4619
Sponsor: Rep. Green, Al [D-TX-9]
Process start date: 2021-07-22
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

To amend the Securities Exchange Act of 1934 to prohibit trading ahead by market makers, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4619.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-07-22.

What are the main provisions?

Key points include:

  • Market makers must act in the customer's best interest, and order information is confidential.
  • Company CEOs will be required to annually certify compliance with these rules.
  • Violations carry significant financial penalties and even imprisonment for responsible individuals.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Green, Al [D-TX-9].

What is the latest detailed status?

The latest detailed status is: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 27 - 22.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy Courts and Law