The STOCK Act: President Obama and Congress Enact the Stop Trading on Congressional Knowledge Act

Sullivan & Cromwell LLP - April 9, 2012
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On April 4, 2012, President Obama signed the Stop Trading on Congressional Knowledge Act (the “STOCK Act” or “Act”). The STOCK Act amends the Securities Exchange Act of 1934 (the “Exchange Act”) and the Commodity Exchange Act (the “CEA”) to prohibit members of Congress, as well as executive and judicial branch officials, from engaging in insider trading in securities or derivatives based on their access to nonpublic material information as government officials.