1. Short title This Act may be cited as the Ban Conflicted Trading Act . 2. Definitions In this Act— (1) the term commodity has the meaning given the term in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ); (2) the term covered investment — (A) means investment in a security, a commodity, or a future, or any comparable economic interest acquired through synthetic means such as the use of a derivative; and (B) does not include— (i) a widely held investment fund described in section 102(f)(8) of the Ethics in Government Act of 1978 (5 U.S.C. App.); or (ii) a United States Treasury bill, note, or bond; (3) the term covered person means— (A) a sitting Member of Congress; and (B) an individual employed as an officer or employee of Congress required to file a report under the Ethics in Government Act of 1978 (5 U.S.C. App.); (4) the term future means a financial contract obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price; and (5) the term security has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). 3. Prohibitions (a) Transactions Except as provided in sections 4 and 5, no covered person may— (1) purchase or sell any covered investment; or (2) enter into a transaction that creates a net short position in any security. (b) Positions A covered person may not serve as an officer or member of any board of any for-profit association, corporation, or other entity. 4. Exceptions (a) Investments held before taking office (1) In general A covered person may have control over or knowledge of the management of any covered investment held by the covered person as of the day before the date on which the covered person took office. (2) Prohibition on purchasing or selling A covered person may not buy or sell any investment described in paragraph (1) except in the case of— (A) placing the investment in a qualified blind trust described in section 5