How members of Congress disclose their stock trades

A 2012 law called the "Stop Trading on Congressional Knowledge Act of 2012," or the "STOCK Act,"^[1][2] requires members of Congress to report their covered transactions. A report is due no later than 30 days after the member receives notification of the transaction, and in no case later than 45 days after the transaction itself.^[3] The reports are made public through databases on the official websites of the House of Representatives and the Senate that allow the public to search, sort, and download the data.^[4]

Who has to file

The STOCK Act works by amending an older law, the Ethics in Government Act of 1978. That older law sets up the financial disclosure system for federal officials, and the STOCK Act added a new transaction reporting rule to it. The STOCK Act was approved April 4, 2012.^[5]

For this rule, a "Member of Congress" means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico.^[6]

Members are not the only filers. The list of people who must report transactions includes a Member of Congress^[7] and an officer or employee of the Congress.^[8] It also covers the President^[3] and the Vice President^[9], along with certain senior executive branch officials. These people must file if they are required to file a report under the main disclosure section of the Ethics in Government Act, subject to any waivers and exclusions.^[3]

When it is due

The deadline has two parts. A filer has 30 days after receiving notification of the transaction, but in no case later than 45 days after the transaction.^[3] In practice, that means a report can reach the public well after the trade took place.

The rule started shortly after the law passed. It applies to transactions occurring on or after the date that is 90 days after the date of enactment.^[10]

Sometimes a filer gets more time. A notice of extension is a document showing that a filer received additional time to file. The law says notices of extension for transaction disclosure shall be made available electronically along with the related disclosure.^[11]

What it shows

A transaction report records a transaction required to be reported under section 102(a)(5)(B)^[3] of the Ethics in Government Act. In other words, the STOCK Act points back to that earlier law to define which transactions count.

Each report gives a brief description, the date, and category of value of any purchase, sale, or exchange that exceeds $1,000, in stocks, bonds, commodities futures, and other forms of securities.^[12] A transaction solely between the filer, their spouse and their dependent children does not have to be reported.^[13]

The amount is a band, not an exact figure. The law sets these categories of value:^[14]

• up to $15,000 (on a report this reads $1,001 to $15,000, since smaller trades are not reported)
• $15,001 to $50,000
• $50,001 to $100,000
• $100,001 to $250,000
• $250,001 to $500,000
• $500,001 to $1,000,000
• $1,000,001 to $5,000,000
• $5,000,001 to $25,000,000
• $25,000,001 to $50,000,000
• over $50,000,000

The public databases hold more than trade reports. They give access to financial disclosure reports filed by Members of Congress, candidates for Congress, and employees of Congress, as well as transaction disclosure reports, notices of extensions, and amendments.^[4] An amendment is a later filing that changes or corrects an earlier one.

Individuals required to file financial disclosure reports with the Secretary of the Senate or the Clerk of the House of Representatives must file them electronically^[15] using official systems.

Reports stay public for a long time. For a member, a report is made available to the public until a date that is 6 years from the date the individual ceases to be a Member of Congress.^[16]

What it does not show

It does not show trades as they happen. Because of the 45 day^[3] outer limit, a report describes something that has already happened, sometimes weeks earlier.

It does not show the exact amount. A report places each trade in a band, so a $1,001 to $15,000 trade could be $1,500 or $15,000.^[14] For a spouse's or dependent child's holdings, the bands above $1,000,000 apply only to items held jointly with the filer.^[17]

It does not cover every kind of investment. The reporting rule does not apply to a widely held investment fund, such as a mutual fund, regulated investment company, pension or deferred compensation plan, if the fund is publicly traded or its assets are widely diversified, and the reporting individual neither exercises control over nor has the ability to exercise control over the financial interests held by the fund.^[18]

It does not explain why a trade was made. A filing is a disclosure, not a finding of wrongdoing. Insider trading rules are a separate matter. The STOCK Act states that Members of Congress and employees of Congress are not exempt from the insider trading prohibitions arising under the securities laws.^[19]

How to read one

Check who filed. The filer may be a member or an officer or employee of the Congress.^[8] Staff filings are not the same as a member's own trades.

Compare the dates. Look at the transaction date and the filing date. The law allows 30 days after notification, but no later than 45 days after the transaction.^[3]

Look for related documents. Notices of extensions and amendments^[4] are part of the public record. A report may have been corrected later, so check for amendments before drawing conclusions.

Remember what is excluded. Holdings in widely held investment funds^[18] that meet the law's conditions will not appear as transactions.

Go to the source when you can. The House Clerk's website includes a section to Download Financial Disclosure Reports.^[20] No login is required to search or sort the data, but a login with the user's name is used when downloading data.^[21]

On GetSignal

getsignal.finance/congress/trades lists every STOCK Act trade report we hold, back to 2014, newest filing first, and every sitting member has a page, for example getsignal.finance/congress/nancy-pelosi. getsignal.finance/methodology explains why each trade shows a dollar range, such as $1,001 to $15,000, and not an exact amount.

Congress trade reports are filed with the House Clerk or the Secretary of the Senate, not with the SEC.

In the app, you can get a push when a member you follow files. This page explains a public disclosure. It is not legal or investment advice.