House Prepares to Consider SEC Funding Bill

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By Rob Tricchinelli

June 17 — The House Rules Committee will take up a bill that would fund the SEC and appropriate money to other financial services agencies, paving the way for the measure to head to the floor in the week ahead.

By going through the committee, House leadership could limit the number and nature of amendments to the bill. Earlier in the month, the appropriations process ground to a halt in the House when certain policy amendments, introduced under “regular order,” which allows for more amendments to be introduced at the House floor, caused the Republican majority to vote against one of its own bills.

The financial services measure was approved June 9 by the House Appropriations Committee and would cut the agency's funding by $50 million, to $1.555 billion, for fiscal year 2017 (112 SLD, 6/10/16).

The rules committee will meet June 21 on the bill.

Lawsuit, Futures

Elsewhere, fresh off its appeals court win in a case challenging its in-house court system, the SEC faces a deadline next week in a similar case with fewer procedural arguments available to the agency.

The agency is fighting back against arguments made by Timbervest LLC that there are “numerous constitutional infirmities” with the in-house forum, including the agency's process for hiring administrative law judges and the ALJs' tenure protection (110 SLD, 6/9/15).

In the futures realm, the window to comment on select portions of a Commodity Futures Trading Commission proposed rule to regulate automated trading ends June 24. The comment period was reopened June 10 to coincide with a staff roundtable discussion on the controversial proposal (104 SLD, 5/31/16).

Interested parties are asked to comment on the definition of “direct electronic access,” quantitative measures that might be used to define an automated trader, compliance with the proposed regulation when using a third party's trading system and the proposed requirement that automated traders give the CFTC access to their source codes in some circumstances.

CFTC Commissioner Sharon Bowen will speak at the Managed Funds Association's Forum 2016 in Chicago June 21. The conference focuses on education on managed futures and macro strategies.

To contact the reporter on this story: Rob Tricchinelli in Washington at

To contact the editor responsible for this story: Yin Wilczek at

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