Page:United States Statutes at Large Volume 102 Part 5.djvu/676

 102 STAT. 4682

PUBLIC LAW 100-704—NOV. 19, 1988

collect information and evidence pertinent to the request for assistance. Such assistance may be provided without r ^ a r d to whether the facts stated in the request would also constitute a violation of the laws of the United States. In deciding whether to provide such assistance, the Commission shall consider whether (A) the requesting authority has agreed to provide reciprocal assistance in securities matters to the Commission; and (B) compliance with the request would prejudice the public interest of the United States.". 15 USC 78b note.

SEC. 7. SECURITIES LAWS STUDY.

(a) FINDINGS.—The Congress finds that— (1) recent disclosures of securities fraud and insider trading have caused public concern about the adequacy of Feder^ securities laws, rules, and regulations; (2) Federal securities laws, rules, and regulations have not undergone a comprehensive and exhaustive review since the advent of the modern intemationed, institutionalized securities market; (3) since that review, the volume of securities transactions and the nature of the securities industry have changed dramatically; and (4) there is an important national interest in maintaining fair and orderly securities trading, assuring the fairness of securities transactions and markets and protecting investors. (b) STUDY AND INVESTIGATION REQUIRED.— (1) GENERAL REQUIREMENT.—The Securities

and Exchange Commission shall, subject to the availability of funds appropriated pursuant to subsection (d), make a study and investigation of the adequacy of the Federal securities laws and rules and r^ulations thereunder for the protection of the public interest and the interests of investors. (2) REQUIRED SUBJECTS FOR STUDY AND INVESTIGATION.—Such

study and investigation shall include an analysis of— (A) the extent of improper trading while in possession of insider information, such as trading with advance knowledge of tender offers or forthcoming announcements of material financial information; (B) the adequacy of surveillance methods and technologies of brokers, dealers, and self-regulatory organizations; (C) the adequacy of cooperation between the Federal, State, and foreign enforcement authorities concerning securities laws enforcement; and (D) impediments to the fairness and orderliness of the securities markets and to improvements in the breadth and depth of the capital available to the securities markets, and additional methods to promote those objectives. (3) CONDUCT OF STUDY AND INVESTIGATION.—In conducting the study and investigation required by this section, the Commission— (A) may exercise any existing authority to gather information, including all power and authority the Commission would have if such investigation were being conducted pursuant to section 21 of the Securities Exchange Act of 1934; (B) may consult with and obtain such assistance and information from other agencies in the executive and legis-

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