Protecting Private Job Creators Act
Protecting Private Job Creators Act would bar the application of Rule 15c2-11 to quotations of fixed-income securities. In effect, it would codify an exemption from the SEC’s OTC quotation disclosure rule for debt instruments such as notes, bonds, debentures, CDs, asset-backed securities, and related instruments (including those convertible into equity or carrying warrants). The bill responds to concerns raised in the findings section about how the SEC has treated fixed-income markets differently from OTC equity markets and asserts that fixed-income markets are critical for capital formation and job creation. By exempting fixed-income quotations from 15c2-11, the bill would reduce regulatory burdens on market participants dealing in fixed-income securities in OTC markets, potentially preserving liquidity and access to capital for issuers.
Key Points
- 1Short title: The bill is named the Protecting Private Job Creators Act.
- 2Purpose and scope: Seeks to exempt quotations of fixed-income securities from Section 240.15c2-11 of the Securities and Exchange Act, removing the rule’s application to fixed-income quotations in OTC markets.
- 3Rationale (findings): Argues that fixed-income markets differ from OTC equity markets, are vital for capital formation, and that recent SEC actions expanding 15c2-11 to fixed-income markets (without traditional rulemaking) have increased regulatory burden.
- 4Definition of fixed-income security: Broadly covers notes, bonds, debentures, certificates of deposit for a security, asset-backed securities, and other evidence of indebtedness; includes securities convertible into equity or carrying warrants/rights.
- 5Regulatory context: References Rule 144A and prior SEC exemptions to fixed-income securities, emphasizing concerns about cost and impact of regulation on private capital markets and job creation.