15 U.S.C. § 77z–2a — Conflicts of interest relating to certain securitizations

(a) General rule. An underwriter, placement agent, initial purchaser, or sponsor of an asset-backed security (including a synthetic one), or any of their affiliates or subsidiaries, may not — for one year after the first closing of the sale of that security — engage in any transaction that would create or involve a material conflict of interest with an investor, arising out of that underwriting, placement, purchase, or sponsorship activity. (b) Rulemaking. The SEC had to issue rules implementing subsection (a) within 270 days of July 21, 2010. (c) Exceptions. The ban in subsection (a) doesn't apply to: risk-mitigating hedging activity tied to positions from the underwriting, placement, purchase, or sponsorship — as long as it's designed to reduce the specific risks that activity created; or purchases and sales of the asset-backed security made under a genuine commitment to provide liquidity for it, or through bona fide market-making. (d) Rule of construction. This subsection doesn't otherwise limit how section 78o–11 applies.