15 U.S.C. § 78o–8 | Universal ratings symbols

(a)

Rulemaking

The Commission shall require, by rule, each nationally recognized statistical rating organization to establish, maintain, and enforce written policies and procedures that—

(1)

assess the probability that an issuer of a security or money market instrument will default, fail to make timely payments, or otherwise not make payments to investors in accordance with the terms of the security or money market instrument;

(2)

clearly define and disclose the meaning of any symbol used by the nationally recognized statistical rating organization to denote a credit rating; and

(3)

apply any symbol described in paragraph (2) in a manner that is consistent for all types of securities and money market instruments for which the symbol is used.

(b)

Rule of construction

Nothing in this section shall prohibit a nationally recognized statistical rating organization from using distinct sets of symbols to denote credit ratings for different types of securities or money market instruments.

Pub. L. 111–203, title IX, § 938July 21, 2010124 Stat. 1885 (, , .)

Editorial Notes

Codification

Section was enacted as part of the Investor Protection and Securities Reform Act of 2010 and also as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and not as part of the Securities Exchange Act of 1934 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

July 21, 2010section 4 of Pub. L. 111–203 section 5301 of Title 12Section effective 1 day after , except as otherwise provided, see , set out as a note under , Banks and Banking.

Definitions

section 5301 of Title 12For definitions of terms used in this section, see , Banks and Banking.

Section text and notes