Sec. 502. SEC STUDY ON ALGORITHMIC TRADING

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## SEC. 502 SEC STUDY ON ALGORITHMIC TRADING ###

(a)In General Not later than 18 months after the date of enactment of this Act, the staff of the Securities and Exchange Commission shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the risks and benefits of algorithmic trading in capital markets in the United States. ###

(b)Matters Required To Be Included The matters covered by the report required by subsection

(a)shall include the following: ####

(1)An assessment of the effect of algorithmic trading in equity and debt markets in the United States on the provision of liquidity in stressed and normal market conditions. ####

(2)An assessment of the benefits and risks to equity and debt markets in the United States by algorithmic trading. ####

(3)An analysis of whether the activity of algorithmic trading and entities that engage in algorithmic trading are subject to appropriate Federal supervision and regulation. ####

(4)A recommendation of whether— #####

(A)based on the analysis described in paragraphs (1), (2), and (3), any changes should be made to regulations; and #####

(B)the Securities and Exchange Commission needs additional legal authorities or resources to effect the changes described in subparagraph (A).