1. Short title This Act may be cited as the 8–K Trading Gap Act of 2019 . 2. Prohibition on certain trading in anticipation of a current report The Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq.) is amended by inserting after section 10D ( 15 U.S.C. 78j–4 ) the following: 10E. Prohibition on certain trading in anticipation of a current report (a) Prohibition Not later than 1 year after the date of enactment of this section, the Commission shall issue rules that require each issuer that is subject to reporting requirements under section 13(a) or 15(d) to establish and maintain policies, controls, and procedures that are reasonably designed to prohibit executive officers and directors of the issuer from purchasing, selling, or otherwise transferring any equity security of the issuer, directly or indirectly— (1) subject to subsection (b)(3)(C), with respect to an event described in any of sections 1 through 6 of Form 8–K, during the period beginning on the date on which the event occurs and ending on the date on which the issuer files or furnishes a current report on Form 8–K with respect to the event; and (2) with respect to an event described in section 7 or 8 of Form 8–K, during the period beginning on the date on which the issuer determines that the issuer will disclose the event and ending on the date on which the issuer files or furnishes a current report on Form 8–K with respect to the event. (b) Permissible transactions In issuing rules under subsection (a), the Commission— (1) may exempt from those rules certain transactions as the Commission determines to be appropriate, including those transactions that— (A) occur automatically; (B) are made pursuant to an advance election; or (C) except as provided in paragraph (2), involve a purchase or sale of equity securities that satisfies the conditions under section 240.10b5–1(c) of title 17, Code of Federal Regulations, or any successor regulation