Transcripts For CSPAN U.S. House Of Representatives 11132017

CSPAN U.S. House Of Representatives August 17, 1114

Proceedings on the postponed questions at a later time. For what purpose does the gentleman from michigan seek recognition . Mr. Speaker, i move to suspend the rules and pass the bill h. R. 3973, the market Data Protection act of 2017. The speaker pro tempore the clerk will report the title of the bill. Union calendar number 299. H. R. 3973, a bill to amend the securities and exchanges act of 1934 to require certain entities to develop internal risks, control mechanisms to safeguard and govern the storage of market data. The speaker pro tempore pursuant to the rule, the gentleman from michigan, mr. Huizenga, and the gentleman from california, mr. Sherman, will each control 20 minutes. The chair recognizes the gentleman from michigan. Mr. Huizenga mr. Speaker, i ask unanimous consent that all members may have five legislative days to revise and and their remarks include extraneous materials on this bill. The speaker pro tempore without objection. Mr. Huizenga mr. Speaker, at this time id yield myself such time as may consume. The speaker pro tempore the gentleman is recognized. Mr. Huizenga mr. Speaker, cybersecurity is critical to consumers, investors, Market Participants and frankly the very markets themselves. However, in april of 2016, the g. A. O. , Government Accountability office, identified weaknesses regarding Information Security protocols at the securities and Exchange Commission and noted that the s. E. C. s failure to implement an agencywide Data Security program had occurred. Once confirmed in may of this year, s. E. C. Chairman clayton initiated an assessment of the s. E. C. s internal cybersecurity risk profile and their approach to cybersecurity from a regulatory and oversight perspective. The s. E. C. s internal assessment found that the agency had inadequate controls and that there were serious cyber and data risks. Unfortunately in september of this year, chairman clayton issued a statement on cybersecurity reached a breach previously detected in 2016 may have provided illicit gain through trading, closed quote. Specifically, a Software Vulnerability existed in the test filing component of the s. E. C. s electronic data gathering analysis and retrieval, or also known as edgar system, which resulted in the access to nonpublic information. While this breach provided the hackers access to highly sensitive material at the time the s. E. C. Believed the intrusion did not result in unauthorized access to personally identifiable information, or p. I. I. , as we commonly refer to it, therefore jeopardizing the operations of the s. E. C. Or result in a Systemic Risk and that was a quote from the s. E. C. s report. However, unfortunately in a followup disclosure shortly after that, chairman clayton revealed that personally identifiable information, including names, birth dates, Social Security numbers were actually compromised for two individuals in that particular breach. The g. A. O. Report and the edgar data breach is now an even greater concern. The sufficiency of risk control mechanisms for the s. E. C. Approve consolidated audit trail or the cat system. It is the largest Repository Data and will have every order, cancellation and trade execution for all Exchange Listed equities and options across all u. S. Markets. It will also collect personally identifiable information beginning one year after it begins accepting market data. These technologies, which was selected to be the plan processor for the cat, is scheduled to begin accepting information who must provide data to cat on wednesday, november 15, just merely days from food. Many of my colleagues as well as Market Participants have voiced concerns about the cost of building and implementing such a system in the amount of p. I. I. That will be required to be collected by the c. A. T. Congressmen eral expressed concerns of such Sensitive Information held within that c. A. T. System as well as those who will access to such information. As i minges menksed, the dead as i mentioned, the deadline for the s. R. O. s is just two days away. Its paramount that the s. E. C. Has adequate Data Security controls in place before that implementation. I previously in committee i had put it this way. That is a repository of the information of gold. Gold is the equivalent of information today. And what they are doing is they are putting more gold into that data vault and we dont have the security to support it. So while the c. A. T. May be a helpful resource for the s. E. C. And even the selfregulatory agencies or organizations, s. R. O. s, once fully implemented, insufficient data controls will undermine confidence in our markets and may very well result in the c. A. T. Being counterproductive. Thus, i join the Financial Services Committee Chairman hensarling in writing chairman clayton to delay the implementation of the c. A. T. System until the s. E. C. Request implement security safeguards and internal controls to ensure that security of confidential and Sensitive Data, closed quote. No assurances for a delay in implementing the c. A. T. Have been provided. And even if they had, it is appropriate for congress to set baseline standards to ensure that controls are in place. In other words, mr. Speaker, were trying to do our job. So h. R. 3973, the market Data Protection act, introduced by representatives davidson and shrman, is necessary to ensure sherman, is necessary to ensure the s. E. C. Is properly collecting data to help our markets as well as the personal information of millions of customers with brokerdealer accounts. Specifically, the Bipartisan Legislation would mandate that the s. E. C. , fen are a and operator of the consolidated audit trail in consultation with the s. E. C. s chief economist develop comprehensive risk control mechanisms to safeguard and govern the storage of market data, all market data sharing agreements and all Academic Research using that market data. The bill halts market data reporting to the data trail until the operator of the c. A. T. System develops such internal risk mechanisms that are deemed satisfactory. The edgar Security Breach and massive equifax data breach, and i might add, mr. Speaker, we just saw a report of an n. S. A. Breach that had just happened. Largest database. This would become the second largest database in the country. While those breaches in which the Sensitive Information from nearly 150 million americans in the Equifax Breach only underscore the importance of proactively ensuring that any highly Sensitive Data being collected by the securities and Exchange Commission or at the s. E. C. s discretion subject to their oversight, is protected with appropriate safeguards. We owe that to the American People. The importance of cybersecurity at the s. E. C. Cannot be overstated. The s. E. C. s ability to safeguard nonpublic Financial Information and other highly Sensitive Data instills confidence in the markets. Securities and exchange ommission commissioner regarded c. A. T. , quote, deadlines are important but the s. E. C. Has one chance to get that right. We have to make sure that everything locked down. We can get it done or we can get it done right. We need to get it done right. End quote. I couldnt agree more with the commissioner, and thats why this legislation is so urgently needed. I commend the bipartisan work of representatives davidson and sherman and urge my colleagues to vote in favor of this very important bill, and i reserve the balance of my time. The speaker pro tempore the gentleman reserves. The gentleman from california. Mr. Sherman i yield myself such time as i may consume. The speaker pro tempore the gentleman is recognized. Anthony sherman i mr. Sherman i want to commend the sponsor of this legislation, mr. Davidson, it was a pleasure working with him and i am pleased that he and i introduced this legislation. This legislation deals with the broader issue of cybersecurity. From equifax to moscow, worldwide, people are concerned with cybersecurity. One particular part of cybersecurity that is important is the s. E. C. s accumulation of very Sensitive Data, whether it be about individuals and their trading or about the overall market. In september, the s. E. C. Disclosed that hackers had breached the s. E. C. Edgar database which is the home to millions of public and nonpublic filings and that breach occurred in 2016. The breach, which was not discovered until august of this year, may have led to some illicit trading activities. This bill requires the s. E. C. To develop and implement cybersecurity risk controls to ensure that market data is protected. This will help protect our markets from harmful disruptions and manipulative trading. In addition, this bill requires that fen are a, the financial industry regulatory authority, and the operator of the consolidated and also requires the operator of the new consolidated audit trail, to develop and implement risk controls to protect the data they store. And the new consolidated audit trail system will not accept data until they have the cybersecurity risk controls necessary to protect it. Once the c. A. T. , or consolidated audit trail, is operational, it will serve an important purpose in assisting the s. E. C. In identifying issues that deserve investigation, but it will also store a large amount of data and its important this data be secure. We must ensure that there are proper controls in place. Now, this bill passed our committee by a vote of 591 in its present form. There was an effort after the bill passed committee to try to broaden the bill and it may very well bill that other related issues need to be dealt with by this house. But i think we made the right decision in bringing to the floor today the bill that passed our committee 591. We should then have hearings, perhaps work on additional legislation, that will add to our ability to provide for cybersecurity in this area. I look forward to working with the chairman of the subcommittee and mr. Davidson and so many others in additional legislation designed to assure our cybersecurity is as good as it can be and to make sure that were not putting information into systems unless were sure that everything has been done so the systems can protect that information. So i call upon all of our colleagues to support this legislation that had 591 support in our committee. And with that i reserve the balance of my time. The speaker pro tempore the gentleman reserves. The gentleman from michigan. Mr. Huizenga mr. Speaker, at this time im pleased to yield such time as he may consume to the gentleman from ohio, the sponsor of this legislation, member of the Financial Services committee, mr. Davidson. The speaker pro tempore the gentleman is recognized. Mr. Davidson thank you, mr. Speaker. Thank you, chairman. I appreciate the opportunity to work with mr. Sherman and the rest of the committee on this bill. It is indeed impressive that it was 591 in our committee in its present form. It does do some really good things. I think the message that it really sends is its important for our Government Agencies to lead by example. The s. E. C. Holds people that they oversee accountable for maintaining cybersecurity, protecting personally identifiable information, and what we know on september 20, chairman clayton highlighted that they had had a breach of the edgar system. This follows on an april, 2016, report by the g. A. O. That highlighted some concerns with their Cybersecurity Program with s. E. C. , and the concerning thing is when chairman clayton took over the s. E. C. , he found this so much time afterwards. It wasnt part of his inbriefing. There isnt real concern there could be systemic cybersecurity risks there, and i think it is great that our committee came together to provide s. E. C. A mandate to get their own house in order in quick fashion and to do that with not just their existing products but with products that are on the cusp of launching. Notably the consolidated audit trail. The consolidated audit trail became subject of some additional concerns because its so close to launching, so what were trusting here is that chairman clayton does the right thing, takes the message from this vote that were about to take and then begins to work th our committee to get this cybersecurity risk under control to provide the assurances that the American People want and that the markets need in order to trust that no more data is collected and made vulnerable than is necessary to accomplish the mission but that whatever data is made available is secure. I urge all of our colleagues to support the passage of this bill and i yield back the balance of my time. The speaker pro tempore the gentleman yields back the balance of his time. The gentleman reserves the balance of his time. The gentleman from california. Seeing that we have no speakers seeking time on this on our side, i urge an aye vote and i yield back the balance of my time. The speaker pro tempore the gentleman yields back the balance of his time. The gentleman from michigan. Mr. Speaker, as id said before, when information is the equivalent of modern day gold, we need to make sure that whatever vaults that information, that gold is going into, are properly protected. Properly protected for consumers and their personally identifiable information. Mr. Huizenga and we have an obligation as government to make sure that their information is protected as best as possible. And doubly so when it is going into governmentrun systems. So that is the reason why 3973 is so imperative, that it be passed. I again commend my friend from ohio, mr. Davidson, and my friend from california, mr. Sherman, on their bipartisan work on that. And with that i urge passage and yield back the balance of my time. The speaker pro tempore the gentleman yields back the balance of his time. All time has been yielded back. The question is, will the house suspend the rules and pass h. R. 3973. Those in favor say aye. Those opposed, no. In the opinion of the chair, 2 3 of those voting having responded in the affirmative, the rules are suspended, the bill is passed and, without objection, the motion to reconsider is laid n the table. For what purpose does the gentleman from georgia seek recognition . Mr. Speaker, i move to suspend the rules and pass the bill, h. R. 2331, the connected Government Act, as amended. The speaker pro tempore the clerk will report the title of the bill. The clerk h. R. 2331, a bill to require a new or updated federal website that is intended for use by the public to mobile friendly and for other purposes. The speaker pro tempore pursuant to the rule, the gentleman from georgia, mr. Hice, and the gentlewoman from illinois, ms. Kelly, each will control 20 minutes. The chair recognizes the gentleman from georgia. Mr. Hice thank you, mr. Speaker. I ask unanimous consent that all members may have fike legislative days in which to five legislative days in which to revise and extend their remarks and include extraneous material on the bill under consideration. The speaker pro tempore without objection. Hice highs mr. Speaker, i yield my mr. Hice mr. Speaker, i yield myself such time as i may consume. I rise today in support of the bill, introduced by the gentlewoman from illinois, ms. Kelly. The bill requires all federal agencies to ensure any federal government website intended for use by the public is mobile friendly. Services offered by the federal government should be effective, but also accessible to the public. Agency websites are one of the most important tools for taxpayers to observe services and information from the government. The u. S. Government runs more han 6,000 websites on over 400 domains. One recent study estimated that approximately 40 of government websites either are not accessible or are difficult to access on a phone. Yet nearly 80 of americans own a smartphone and at least one in 10 American Adults rely exclusively on a smartphone for access to the internet, according to a pew survey. The data clearly points to the utility of making all government websites mobile friendly. Another study found that more people access the internet on their mobile devices than a desk top computer for the first time last year. Its clear that federal agencies must emphasize mobile accessibility to effectively serve the American People. The connected Government Act will require agencies to do just that. This bill requires federal agencies to ensure their websites are mobile friendly during the course of creating new websites or updating existing ones. A mobile friendly government is a necessary step in the modernization of the governments i. T. Infrastructure. I applaud my colleague, the gentlewoman from illinois, for her work in sponsoring this bill. Im proud also to support this Bipartisan Legislation and urge my colleagues to do the same. And i reserve the balance of my time. The speaker pro tempore the gentleman reserves. The gentlewoman from illinois. Ms. Kelly thank you, mr. Speaker. I yield myself such time as i may consume. The speaker pro tempore the gentlewoman is recognized. Ms. Kelly before i begin my remarks, id ask for unanimous consent to enter into the record a statement from energy and commerce Ranking Member, congressman frank pallone, an original cosponsor on this legislation. I also ask for unanimous consent to enter into the record a blog post regarding this bill written by congressman pallone and myself. The speaker pro tempore the gentlewomans request will be covered under general leave. Ms. Kelly thank you rk thank you, mr. Speaker. Id like to first thank the cosponsor on this

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