STOCK Act Disclosures: Periodic Transaction Reports, the 45-Day Rule and Amount Brackets

The short version

The Stop Trading on Congressional Knowledge Act of 2012, known as the STOCK Act, amended the Ethics in Government Act to require members of Congress, and certain senior staff and executive branch officials, to report individual securities transactions shortly after they happen. The report is called a Periodic Transaction Report (PTR).

A PTR is due within 30 days of the filer being notified of a transaction, and in no case later than 45 days after the transaction itself. It covers trades over $1,000 in stocks, bonds and other securities owned by the filer, a spouse or a dependent child. Amounts are reported as a range, not an exact dollar figure. PTRs are public: House reports through the Clerk of the House, Senate reports through the Secretary of the Senate.

Who files and what is covered

PTR requirements apply to members of the House and Senate, officers of each chamber, employees paid at or above the "senior staff" rate, and certain executive branch officials. The rule covers:

• Purchases, sales and exchanges of stocks, bonds, options, commodities futures and other securities, including cryptocurrency, when a single transaction exceeds $1,000.
• Assets held by the filer, a spouse, or a dependent child. Filers may mark a line SP (spouse), DC (dependent child) or JT (joint), but that marking is optional in the House.
• Self-directed retirement accounts such as IRAs and 401(k) plans where the filer directs specific trades.

Several transactions are excluded from PTRs, though many still appear on the annual financial disclosure report:

• Mutual funds and exchange-traded funds, and other widely held diversified investment funds.
• Real estate, certificates of deposit, and bank account deposits and withdrawals.
• Transactions between the filer, spouse and dependent children.
• Stock splits, bequests and inheritances, and federal retirement programs such as the Thrift Savings Plan.

The 30-day and 45-day deadlines

The deadline is the earlier of two dates:

1. 30 days after the filer is notified of the transaction, or
2. 45 days after the transaction date.

The 30-day clock exists for trades the filer did not place personally, for example by a spouse or a managed account. The 45-day outer limit applies regardless.

A worked example

A hypothetical member's spouse sells shares on March 3. The member's broker statement reaches the member on March 20.

Hypothetical dates.

House guidance states that PTR deadlines are not extended when they fall on a weekend or federal holiday, and no extensions are granted for PTRs.

Amount brackets

PTRs report the value of each transaction as one of a set of ranges:

There is also a category for transactions over $1,000,000 in assets held solely by a spouse or dependent child in which the filer has no interest. The bracket reflects the gross amount of the transaction (the total purchase or sale price), not the gain or loss.

The width of the ranges matters. A single line in the $1,001 to $15,000 bracket could be $1,500 or $14,900. Summing brackets gives a range, not a figure: ten trades in the $15,001 to $50,000 bracket total somewhere between $150,010 and $500,000.

Late filings

A PTR filed after its deadline is late. In the House, late PTRs are subject to a minimum fee of $200, multiple late transactions can result in additional fees, and a $200 fee also applies to annual reports filed more than 30 days late. The Senate has a parallel $200 late fee. The fee does not prevent the ethics committees from taking other action, and knowingly and willfully failing to file can carry civil or criminal penalties.

How a PTR differs from a corporate insider Form 4

People sometimes compare PTRs to the Form 4 that corporate insiders file. The differences are large:

How to explore disclosures on Signal8

• The politicians pages collect disclosed trades by member, with tabs for trades, committees and campaign finance.
• The disclosures view lists recently filed reports.
• For corporate insiders filing Form 4s, see the insiders pages.

For what this data can and cannot support, see Congressional Trading Data: What It Can and Cannot Tell You.

FAQ

How long do members of Congress have to report a stock trade?

Under the STOCK Act, a Periodic Transaction Report is due by the earlier of 30 days after the member is notified of the transaction or 45 days after the transaction date. The 30-day clock matters for trades made by a spouse or managed account. House guidance says the deadline is not extended to the next business day when it falls on a weekend or holiday.

Why are congressional trades reported as ranges?

The Ethics in Government Act sets value categories rather than requiring exact amounts. A transaction is reported in a bracket such as $1,001 to $15,000 or $50,001 to $100,000, based on the gross purchase or sale price. As a result, the exact size of any single trade cannot be determined from a PTR, and totals across trades are ranges.

Do members of Congress have to report trades by their spouse?

Yes. Transactions over $1,000 in securities held by a spouse or dependent child must be reported on a PTR, subject to the same deadlines. There is a separate category for spouse or dependent child assets over $1,000,000 in which the member has no interest. Marking a line as a spouse transaction is optional in the House, so not every spouse trade is labelled.

What is the penalty for filing a PTR late?

In the House, late PTRs are subject to a minimum $200 fee, and multiple late transactions can lead to additional fees. The Senate applies a similar $200 late fee. Payment does not stop the ethics committees from taking other action, and knowingly and willfully failing to file can lead to civil or criminal penalties.