Government Securities Reform Act of 1992

Title I: Government Securities Reform: - Government Securities Reform Act of 1992 - 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 request of the appropriate regulatory agency, records that enable it 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.

Declares that rules prescribed by the SEC with respect to government securities recordkeeping shall not apply to a financial institution that is not within its jurisdiction. Requires each appropriate non-SEC regulatory agency to prescribe for the financial institutions within its jurisdiction recordkeeping rules that are substantially similar to those prescribed by the SEC, taking into account the distinct nature of such institutions. Requires each appropriate regulatory agency to comply promptly with any specific request by any other appropriate regulatory agency for information collected under this Act to reconstruct trading.

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. Exempts from the application of such rules any financial institution for which the SEC is not the appropriate regulatory agency. Requires other regulatory agencies, however, to prescribe substantially similar rules for the financial institutions under their respective jurisdictions.

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 (other than a financial institution) whom 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. (Requires the appropriate regulatory agency to prescribe substantially similar rules for any government securities trader that is a financial institution under its jurisdiction.) 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. Delineates the parameters within which the SEC may examine systems and operations of government securities information systems. Bars the SEC from requiring the establishment or use of a consolidated trading system for government securities.

Requires the Secretary, the SEC, and the Board of Governors of the Federal Reserve System to: (1) monitor and evaluate the efficacy of private sector efforts to disseminate price and volume information of 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.

Title II: Government Securities Auction Reform - Government Securities Auction Reform Act of 1992 - Amends the Federal Reserve Act to: (1) direct the Secretary of the Treasury to designate one Federal Reserve bank (DFRB) to conduct the auction of Government securities, upon issuance under an automated system (established under this Act); and (2) require the DFRB to establish and oversee a secure automated system for the sale of Treasury securities which will facilitate remote participation in Treasury securities auctions.

Declares that persons shall be authorized to participate in such system if they: (1) meet the minimum creditworthiness standard established by the Secretary; and (2) agree to comply with the systems rules and regulations.

Prohibits any participant from receiving any advantage, special treatment, or other benefit, which is not generally available to other participants. Permits any differential treatment among participants which is appropriate due to the unique nature of the type of participant.

Requires the automated system to be designed so that: (1) it maximizes the access of qualified purchasers to the system; and (2) it minimizes any anticompetitive effect with respect to any class of participants. Provides for enforcement of regulations pertaining to the system, including participant revocation or suspension, and a report to the Congress by the Secretary regarding any material violation by a participant or related personnel.

Requires the Secretary and the DFRB to make every effort to implement the automated system by June 30, 1993, or report to the Congress if it has not been fully implemented by that date.

Sets forth requirements relating to any advisory committee which may be established to advise the Secretary, the Board of Governors of the Federal Reserve System, or any Federal Reserve Bank on any marketing or sales aspect of government securities.