PUBLIC LAW 104-290—OCT. 11, 1996 110 STAT. 3451 graph (1), together with any recommendations for regulatory or legislative changes that it considers necessary to improve shareholder access to proxy statements. (c) PREFERENCING.— (1) STUDY.— The Commission shall conduct a study of the impact on investors and the national market system of the practice known as "preferencing" on one or more registered securities exchanges, including consideration of— (A) how preferencing impacts— (i) the execution prices received by retail securities customers whose orders are preferenced; and (ii) the ability of retail securities customers in all markets to obtain executions of their limit orders in preferenced securities; and (B) the costs of preferencing to such customers. (2) REPORT. —Not later than 6 months after the date of enactment of this Act, the Commission shall submit a report to the Congress on the results of the study conducted under paragraph (1). (3) DEFINITION. — For purposes of this subsection, the term "preferencing" refers to the practice of a broker acting as a dealer on a national securities exchange, directing the orders of customers to buy or sell securities to itself for execution under rules that permit the broker to take priority in execution over same-priced orders or quotations entered prior in time. (d) BROKER-DEALER UNIFORMITY.— is use 78o note. (1) STUDY.— The Commission, after consultation with registered securities associations, national securities exchanges, and States, shall conduct a study of the impact of disparate State licensing requirements on associated persons of registered brokers or dealers and methods for States to attain uniform licensing requirements for such persons. (2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Commission shall submit to the Congress a report on the study conducted under paragraph (1). Such report shall include recommendations concerning appropriate methods described in paragraph (1)(B), including any necessary legislative chsmges to implement such recommendations. Approved October 11, 1996. LEGISLATIVE HISTORY—H.R. 3005 (S. 1815): HOUSE REPORTS: Nos. 104-622 (Comm. on Commerce) and 104-864 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 142 (1996): June 18, 19, considered and passed House. June 27, considered and passed Senate, amended, in lieu of S. 1815. Sept. 28, House agreed to conference report. Oct. 1, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): Oct. 11, Presidential statement.
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