STUDIES AND REPORTS.

SEC. 510. STUDIES AND REPORTS. (a) Impact of Technological Advances.— (1) Study.— (A) In general.—The Commission shall conduct a study of— (i) the impact of technological advances and the use of on-line information systems on the securities markets, including steps that the Commission has taken to facilitate the electronic delivery of prospectuses to institutional and other investors; (ii) how such technologies have changed the way in which the securities markets operate; and (iii) any steps taken by the Commission to address such changes. (B) Considerations.—In conducting the study under subparagraph (A), the Commission shall consider how the Commission has adapted its enforcement policies and practices in response to technological developments with regard to— (i) disclosure, prospectus delivery, and other customer protection regulations; (ii) intermediaries and exchanges in the domestic and international financial services industry; (iii) reporting by issuers, including communications with holders of securities; (iv) the relationship of the Commission with other national regulatory authorities and organizations to improve coordination and cooperation; and (v) the relationship of the Commission with State regulatory authorities and organizations to improve coordination and cooperation. (2) Report.—Not later than 1 year 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). (b) Shareholder Proposals.— (1) Study.—The Commission shall conduct a study of— (A) whether shareholder access to proxy statements pursuant to section 14 of the Securities Exchange Act of 1934 has been impaired by recent statutory, judicial, or regulatory changes; and (B) the ability of shareholders to have proposals relating to corporate practices and social issues included as part of proxy statements. (2) Report.—Not later than 1 year 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 para-110 STAT. 3451graph(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.— (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 changes to implement such recommendations.