[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1356 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1356
To amend the Securities Exchange Act of 1934 to require national
securities exchanges to identify issuers that are consolidated variable
interest entities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 8, 2025
Mr. Scott of Florida (for himself and Mrs. Shaheen) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Securities Exchange Act of 1934 to require national
securities exchanges to identify issuers that are consolidated variable
interest entities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Trading and Investing with Clear
Knowledge and Expectations about Risk Act'' or the ``TICKER Act''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) variable interest entities based in foreign
jurisdictions, including the People's Republic of China, pose a
specific and significant risk to investors in the United
States, including because investors that purchase shares of
those entities--
(A) have no equity or direct ownership interest;
and
(B) lack legal recourse; and
(2) investors in the United States should more clearly be
made aware of the risk described in paragraph (1) in a
transparent, easily accessible, and standardized manner that is
recognizable to all persons that have invested, or seek to
invest, in entities that are described in that paragraph and
are listed on exchanges in the United States, such as through
clearly visible warning indicators on ticker symbols and other
company symbols used by those exchanges.
SEC. 3. IDENTIFICATION OF RISK WITH RESPECT TO CERTAIN ENTITIES.
(a) Definitions.--In this section--
(1) the terms ``broker'', ``dealer'', ``exchange'', and
``security'' have the meanings given those terms in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
(2) the term ``Commission'' means the Securities and
Exchange Commission;
(3) the term ``covered entity'' means a consolidated
variable interest entity;
(4) the term ``national securities exchange'' means an
exchange that is registered as a national securities exchange
pursuant to section 6 of the Securities Exchange Act of 1934
(15 U.S.C. 78f), as amended by subsection (b) of this section;
and
(5) the term ``variable interest entity'' has the meaning
given the term under generally accepted accounting principles.
(b) Requirements.--
(1) National securities exchanges.--
(A) In general.--Section 6(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78f(b)) is amended by
adding at the end the following:
``(11)(A) In this paragraph, the term `covered entity' has
the meaning given the term in section 3(a) of the Trading and
Investing with Clear Knowledge and Expectations about Risk Act.
``(B) The rules of the exchange require the identification
of each covered entity, the securities of which are listed on
the exchange, as a covered entity in the symbol for the covered
entity used on the exchange.''.
(B) Effective date; applicability.--The amendment
made by subparagraph (A) shall--
(i) take effect on the date that is 180
days after the date of enactment of this Act;
and
(ii) apply with respect to a covered
entity, the securities of which are listed on a
national securities exchange on or after the
date that is 180 days after the date of
enactment of this Act.
(2) Brokers and dealers.--Beginning not later than 180 days
after the date of enactment of this Act, the Commission shall
require brokers and dealers to provide warnings to investors
investing in covered entities that those investors may lack
legal recourse with respect to such an investment.
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