Protecting Private Job Creators Act
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The bill would permanently exempt quotations of fixed-income securities, such as corporate bonds and certificates of deposit, from an SEC rule that otherwise requires brokers to have certain issuer information on file before publishing price quotes.
The change would write into law an exemption the SEC has granted only through a series of temporary orders since 2020, giving bond dealers permanent certainty that this disclosure rule will not apply to their quotations.
What this bill would do
What it would do
The bill would exempt quotations of fixed-income securities from Rule 15c2-11 of the Securities and Exchange Commission's regulations, a rule that generally bars brokers and dealers from publishing over-the-counter securities price quotations unless they keep certain information about the issuer on file. It defines "fixed-income security" broadly to include notes, bonds, debentures, certificates of deposit, asset-backed securities, and other evidence of indebtedness, including versions convertible into equity.
The bill would not create a new regulatory program or agency; it would instead give permanent statutory backing to an exemption the SEC has already granted repeatedly through temporary orders, most recently in November 2024. It does not otherwise change SEC oversight of equity securities or other disclosure rules unrelated to Rule 15c2-11.
Key provisions
- 1Would exempt quotations of fixed-income securities from Rule 15c2-11 of title 17, Code of Federal Regulations, which requires brokers to have issuer information on file before quoting securities
- 2Would define "fixed-income security" to include notes, bonds, debentures, certificates of deposit, asset-backed securities, and other evidence of indebtedness, including convertible versions
Who would be affected
Brokers and dealers who quote fixed-income securities in over-the-counter markets, issuers of corporate bonds, certificates of deposit, and asset-backed securities, and the Securities and Exchange Commission, which currently administers the exemption through temporary orders that this bill would make permanent.
Why it matters
Bond dealers and issuers would gain permanent certainty that quoting fixed-income securities will not trigger the issuer-information requirement, instead of relying on the SEC periodically renewing a temporary exemptive order. This removes a recurring source of regulatory uncertainty for the over-the-counter fixed-income market.
What would change
Changes to existing law
Amends 17 C.F.R. § 240.15c2-11 (SEC Rule 15c2-11) (Sec. 2(a))
Provides that this quotation-disclosure rule will not apply to quotations of fixed-income securities, codifying an exemption the SEC previously granted by order.
Agencies directed to act
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 3959 would have no significant effect on the federal deficit, with any changes to direct spending, revenues, or discretionary spending all falling between -$500,000 and $500,000 over the 2026–2036 period.
H.R. 3959 would exempt fixed-income securities from an SEC rule requiring brokers and dealers to review issuer information before publishing price data. CBO estimates zero effect on direct (mandatory) spending over the 2026–2036 window, and any revenue changes — from potential reductions in civil monetary penalties collected by the SEC — would be negligible (less than $500,000). Discretionary costs to the SEC to implement the bill would also be insignificant, and because the SEC is authorized to collect fees to offset its appropriation, the net effect on discretionary spending over 2026–2031 would be negligible. The bill contains no intergovernmental mandates; it does contain a private-sector mandate (on entities that pay SEC fees), but CBO estimates its cost would fall well below the statutory Unfunded Mandates Reform Act threshold of $214 million annually.
How implementation would work
The bill is largely self-executing: it directly exempts fixed-income securities quotations from Rule 15c2-11 by statute, rather than directing the SEC to conduct new rulemaking. Because the SEC has already implemented this exemption through a series of orders since 2020, brokers and dealers would continue current practice, but with the exemption now grounded in statute rather than subject to renewal or revocation by future SEC action.
Legislative status & sources
Latest action
Placed on the Union Calendar, Calendar No. 448.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill provides statutory authority for an exemption from specified disclosure requirements applicable to fixed-income securities (e.g., corporate bonds or a certificate of deposit).
Under current securities regulations, brokers and dealers are generally prohibited from publishing securities quotations (i.e., the sale price) in over-the-counter (i.e., not on a national exchange) markets unless they have certain information about the securities issuer in their records. The Securities and Exchange Commission issued a series of orders (with the latest order issued in November 2024) granting an exemption to this rule to fixed-income securities that comply with specified safe-harbor rules. The bill provides statutory authority for this exemption.
Legislative subjects
Bank accounts, deposits, capital; Finance and Financial Sector; Financial services and investments; Securities
Committee report
H. Rept. 119-523