120 STAT. 968
29 USC 1108.
Deadline. Notice.
VerDate 14-DEC-2004
10:20 Jul 12, 2007
PUBLIC LAW 109–280—AUG. 17, 2006
definitions and special rules), as amended by section 601, is amended by adding at the end the following new paragraph: ‘‘(9) BLOCK TRADE.—The term ‘block trade’ means any trade of at least 10,000 shares or with a market value of at least $200,000 which will be allocated across two or more unrelated client accounts of a fiduciary.’’. (b) BONDING RELIEF.—Section 412(a) of such Act (29 U.S.C. 1112(a)) is amended— (1) by redesignating paragraph (2) as paragraph (3), (2) by striking ‘‘and’’ at the end of paragraph (1), and (3) by inserting after paragraph (1) the following new paragraph: ‘‘(2) no bond shall be required of any entity which is registered as a broker or a dealer under section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) if the broker or dealer is subject to the fidelity bond requirements of a self-regulatory organization (within the meaning of section 3(a)(26) of such Act (15 U.S.C. 78c(a)(26)).’’. (c) EXEMPTION FOR ELECTRONIC COMMUNICATION NETWORK.— (1) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.—Section 408(b) of such Act, as amended by subsection (a), is amended by adding at the end the following: ‘‘(16) Any transaction involving the purchase or sale of securities, or other property (as determined by the Secretary), between a plan and a party in interest if— ‘‘(A) the transaction is executed through an electronic communication network, alternative trading system, or similar execution system or trading venue subject to regulation and oversight by— ‘‘(i) the applicable Federal regulating entity, or ‘‘(ii) such foreign regulatory entity as the Secretary may determine by regulation, ‘‘(B) either— ‘‘(i) the transaction is effected pursuant to rules designed to match purchases and sales at the best price available through the execution system in accordance with applicable rules of the Securities and Exchange Commission or other relevant governmental authority, or ‘‘(ii) neither the execution system nor the parties to the transaction take into account the identity of the parties in the execution of trades, ‘‘(C) the price and compensation associated with the purchase and sale are not greater than the price and compensation associated with an arm’s length transaction with an unrelated party, ‘‘(D) if the party in interest has an ownership interest in the system or venue described in subparagraph (A), the system or venue has been authorized by the plan sponsor or other independent fiduciary for transactions described in this paragraph, and ‘‘(E) not less than 30 days prior to the initial transaction described in this paragraph executed through any system or venue described in subparagraph (A), a plan fiduciary is provided written or electronic notice of the
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