Market Reform Act of 1990 - Amends the Securities Exchange Act of 1934, with respect to Securities and Exchange Commission (SEC) authority to temporarily suspend all securities trading, to render a suspension order ineffective unless the SEC notifies the President of its decision and it is advised that the President does not disapprove of such decision. Authorizes the SEC by order to take whatever actions it deems necessary in an emergency situation to: (1) maintain or restore fair and orderly security markets (other than markets in exempted securities); or (2) ensure prompt and accurate clearance and settlement of transactions in any securities (other than exempted securities). Limits to ten business days any such action. Authorizes the President to override such SEC actions.
Establishes reporting and disclosure requirements for: (1) large securities traders; (2) registered brokers and dealers (with respect to large securities transactions); and (3) certain registered municipal securities dealers. Authorizes the SEC to require additional reports concerning the financial and securities activities of a dealer's corporate business associates if it has reasonable concerns about the dealer's financial condition. Prescribes notification procedures. Deems copies of certain reports filed by the associated person with a Federal banking agency to meet such recordkeeping requirements. Permits the SEC to require supplemental information about potential risks from brokers, dealers, or municipal securities dealers.
Sets forth confidentiality guidelines for information obtained by the SEC from a Federal banking regulatory agency.
Directs the SEC to notify the appropriate banking agency of its concerns regarding the significant operational or financial risks to an associated person resulting from the activities of a securities broker or dealer subject to the jurisdiction of such banking agency. Prescribes guidelines under which the SEC may exempt persons from the reporting requirements.
Directs the SEC to facilitate the establishment of: (1) a national system for clearance and settlement of securities transactions; and (2) coordinated facilities for clearance and settlement of transactions in securities, options and contracts. Authorizes the SEC to adopt rules concerning securities transfers and pledges if it finds such rules appropriate for the public interest.
Authorizes the States to enact preempting legislation with respect to SEC rules for the transfer and clearance of securities.
Directs the SEC to establish an Advisory Committee to report on areas selected by it.
Authorizes the SEC to prohibit or constrain abusive or manipulative trading practices reasonably certain to result in volatility levels which adversely affect the stability of securities markets.
Sets forth the SEC's enforcement powers.
Directs the SEC, in adopting market volatility rules, to minimize their impact on the market's normal operations and on a natural person's freedom to buy or sell any equity security.
Amends the Federal Deposit Insurance Act to require any appropriate Federal banking agency to notify the SEC of any concerns about the financial or operational risks of any registered broker or dealer resulting from activities of any insured depository institution, holding company, or affiliate if the broker or dealer is an affiliate of that institution.
Requires specified market regulatory agencies to report annually to the Congress regarding: (1) their efforts to coordinate their regulatory activities of the financial markets; (2) their efforts to coordinate marketplace mechanisms to protect the payments and market systems during market emergencies; and (3) their views regarding the adequacy of margin levels and the use of leverage by market participants.
Requires the SEC to report to the Congress a detailed evaluation of the progress made towards establishing linked or coordinated facilities for clearance and settlement of specified market transactions.
Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 604.
Measure laid before Senate by unanimous consent.
Amendment SP 2880 proposed by Senator Dodd.
Amendment SP 2880 agreed to in Senate by Voice Vote.
Passed/agreed to in Senate: Passed Senate with an amendment and an amendment to the Title by Voice Vote.
Passed Senate with an amendment and an amendment to the Title by Voice Vote.
Message on Senate action sent to the House.
Mr. Markey moved that the House suspend the rules and agree to the Senate amendments.
Mr. Rinaldo demanded a second on the motion to suspend the rules. Without objection a second was ordered.
DEBATE - The House proceeded with forty minutes of debate.
Resolving differences -- House actions: On motion that the House agree to the Senate amendments Agreed to by voice vote.
Enacted as Public Law 101-432
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On motion that the House agree to the Senate amendments Agreed to by voice vote.
Motion to reconsider laid on the table Agreed to without objection.
Measure Signed in Senate.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 101-432.
Became Public Law No: 101-432.